CLA-2 CO:R:C:V 555293 GRV
Mr. Jose R. Cifuentes
300 Tresser Blvd. 17-H
Stamford, Connecticut 06901
RE: Applicability of partial duty exemption under HTSUS subhead-
ing 9802.00.80 to denim blue jean jackets decorated abroad
with rhinestones
Dear Mr. Cifuentes:
This is in response to your letter of January 27, 1989,
requesting a ruling on the applicability of subheading
9802.00.80, Harmonized Tariff Schedule of the United States
(HTSUS), to denim blue jean jackets decorated with rhinestones to
be imported from Colombia. A photograph of a typical jacket to
be imported was enclosed with your letter. We regret the delay
in responding to your request.
FACTS:
You state that semi-decorated, denim blue jean jackets,
rhinestones of various colors and sizes, clips and staplers, all
of U.S. origin, will be exported to Colombia for use in decor-
ating the jackets by attachment of the rhinestones. (The jackets
are partially decorated by painting in the U.S.). In Colombia,
the rhinestones will be variously attached to the jackets--
dependent on the specific design painted on it--with a special
device that resembles a stapler/press. Following this studding
process, the finished jackets will be returned to the U.S.
ISSUE:
Whether the imported denim blue jean jackets decorated with
rhinestones are eligible for the partial duty exemption under
HTSUS subheading 9802.00.80.
LAW & ANALYSIS:
HTSUS subheading 9802.00.80 provides a partial duty exemp-
tion for:
[a]rticles assembled abroad in whole or in part of fab-
ricated components, the product of the United States,
which (a) were exported in condition ready for assembly
without further fabrication, (b) have not lost their
physical identity in such articles by change in form,
shape, or otherwise, and (c) have not been advanced in
value or improved in condition abroad except by being
assembled and except by operations incidental to the
assembly process such as cleaning, lubricating, and
painting.
An article entered under this tariff provision is subject to a
duty upon the full value of the imported assembled article, less
the cost or value of the U.S. components assembled therein, pro-
vided there has been compliance with the documentation require-
ments of section 10.24, Customs Regulations (19 CFR 10.24) (copy
enclosed).
"Assembly" operations for purposes of HTSUS subheading
9802.00.80 mean the fitting or joining together of fabricated
components, such that the components are in a fixed relationship
to each other. Acceptable assembly operations are interpreted at
section 10.16(a), Customs Regulations (19 CFR 10.16(a)), which
specifically enumerates the use of fasteners as an acceptable
means of assembly. Further, assembly operations may be preceded,
accompanied, or followed by operations of a minor nature which
are incidental to assembly. See, 19 CFR 10.16(b).
In the instant case, we find that the decorated jackets to
be imported will be eligible for the partial duty exemption
available under HTSUS subheading 9802.00.80. Attaching rhine-
stones to jackets by crimping clips to the backside of the
rhinestones after they are inserted through the jacket fabric
constitutes an acceptable assembly operation. See, Headquarters
Ruling Letter 555205 (August 25, 1989) (crimping constitutes an
acceptable joining of two solids within the meaning of 19 CFR
10.16(a)). As the U.S. components will not lose their physical
identities in the assembled article and will not be advanced in
value or improved in condition except by assembly operations and
operations incidental thereto, the rhinestone-decorated blue
jean jackets will be eligible for the partial duty exemption
under HTSUS subheading 9802.00.80 when returned to the U.S.
CONCLUSION:
On the basis of the information provided, the denim blue
jean jackets decorated with rhinestones will be eligible for the
partial duty exemption under HTSUS subheading 9802.00.80 when
returned to the U.S., upon compliance with the documentary
requirements of 19 CFR 10.24.
Sincerely,
John Durant, Director
Commercial Rulings Division
Enclosure