CLA-2 CO:R:C:V 555085 DBI
Mr. Norbert T. Rogers
Corporate Transportation and Distribution
Corning Glass Works
Corning, New York 14831
RE: Applicability of partial duty exemption of item
806.20, TSUS, to glass rectangles exported to Japan
to be cut, ground and polished
Dear Mr. Rogers:
This is in response to your letter of April 18, 1988, to the
Customs Area Director of the New York Seaport, in which you
requested a ruling concerning the applicability of item 806.20,
Tariff Schedules of the United States (TSUS), to glass
rectangles exported to Japan to be cut, ground and polished and
imported by your company. Your letter was referred to this
office for review and a ruling.
FACTS:
You advise that glass drawn at a U.S. plant will be sent to
Japan in sheets measuring 36" x 31.2". In Japan, the glass
will be cut to size and shape to form rectangles measuring 6" x
6". The edges of the rectangles will be ground, the corners
will be cut (edged or beveled) and the surface of each
rectangle will be lightly polished.
In meetings and telephone conversations with Import
Specialists in New York, you explained that these products
ultimately will be used in small computers, calculators and
similar machines to form the window portions of these machines.
When imported into the U.S., the glass will not be ready to be
installed in a machine. The glass rectangles will be further
cut and shaped in the U.S. before being used. However, the
processing performed in Japan brings the merchandise very close
to its final functional state and are crucial operations in the
manufacture of the glass products. Samples are submitted for
examination.
- 2 -
ISSUE:
Whether the described glass rectangles, when returned to the
U.S., will be eligible for the partial duty exemption in item
806.20, TSUS (9802.00.40, Harmonized Tariff Schedule of the
United States (HTSUS)).
LAW AND ANALYSIS:
Item 806.20, TSUS, provides for the assessment of duty on
the value of repairs or alterations performed on articles
returned to the U.S. after having been exported to be advanced
in value or improved in condition by any process of manufacture
or other means. However, the application of this tariff
provision is precluded in circumstances where the operations
performed abroad destroy the identity of the articles or create
new or commercially different articles. See A.F. Burstrom v.
United States, 44 CCPA 27, C.A.D. 631 (1957); Guardian
Industries Corporation v. United States, 3 CIT 9, Slip Op. 82-4
(Jan. 5, 1982). Item 806.20, TSUS, treatment also is precluded
where the exported articles are incomplete for their intended
use and the foreign processing operation is a necessary step in
the preparation or manufacture of finished articles. Dolliff
and Company, Inc. v. United States, 66 CCPA 77, C.A.D. 1225,
599 F.2d 1015 (1979).
In the present case, we believe that the foreign cutting to
size and shape constitutes an operation that exceeds a repair
or alteration. The glass sheets that are shipped to Japan for
processing are commercially different from the glass rectangles
that return. The imported glass rectangles have been specially
prepared to be specifically cut to fit into windows for small
computers and calculators and similar machines.
Additionally, the glass rectangles are not finished articles
completed for their intended use and sent to Japan merely for
alterations or repairs. On the contrary, the glass is cut to
size and shape, ground and polished, which are all necessary
steps in the preparation of the finished window portions of
small machines.
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The glass rectangles are classifiable under subheading
7006.00.4050, HTSUS, as glass of heading 7005 (which provides
for ground or polished glass), bent, edgeworked or otherwise
worked, other: other. This is the classification under the
HTSUS, which is effective January 1, 1989, and is subject to
changes made to the statute before the effective date.
HOLDING:
On the basis of the information and samples submitted, it is
our opinion that the foreign cutting to size and shape and the
other operations may not be considered an alteration as that
term is used in item 806.20, TSUS. Consequently, it does not
appear that item 806.20, TSUS, or any other Schedule 8
provision providing for a reduction in duty would be applicable
to the returned glass rectangles.
Sincerely,
John Durant
Director, Commercial
Rulings Division
cc: Chief, National Import Specialist Branch 3
New York Seaport (CLA-2-70:S:N:N3G:226830454)
1cc: CLA-2 CO:R:C:V:DBI:MM:9/7/88