CLA-2 CO:R:C:V 555437 KAC
Mr. John W. Cain
Cain Customs Brokers, Incorporated
421 Texano
P.O. Box 150
Hidalgo, Texas 78557
RE: Applicability of subheading 9802.00.80, HTSUS, to PCV valves
created by force fitting and heating operations in
Mexico.Assembly;incidental operations;10.16(a);554069
Dear Mr. Cain:
This is in response to your letters of June 30, 1989, and
June 18, 1990, on behalf of Wells Manufacturing Company,
requesting a ruling on the applicability of subheading
9802.00.80, Harmonized Tariff Schedule of the United States
(HTSUS), to PCV valves imported from Mexico. We regret the delay
in responding to your request.
FACTS:
Wells will ship U.S.-origin metal and plastic components to
Mexico for assembly into PCV valves for automobiles. Wells will
make 54 different valve models consisting of all plastic valves,
all steel valves and combination steel and plastic valves. The
majority of operations performed abroad will involve the force
fitting of components together. Additionally, after force
fitting the components together, the all plastic PCV valves will
be heated to approximately 150 degrees in order to cure the
adhesive. Upon completion of the foreign operations, the PCV
valves will be imported into the U.S.
ISSUE:
Whether the PCV valves will be eligible for the duty
exemption available under subheading 9802.00.80, HTSUS, when
imported into the U.S.
LAW AND ANALYSIS:
HTSUS subheading 9802.00.80 provides a partial duty
exemption for:
[a]rticles assembled abroad in whole or in part of
fabricated 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, lubrication, and painting.
All three requirements of HTSUS subheading 9802.00.80 must be
satisfied before a component may receive a duty allowance. An
article entered under this tariff provision is subject to duty
upon the full cost or value of the imported assembled article,
less the cost or value of the U.S. components assembled therein,
upon compliance with the documentary requirements of section
10.24, Customs Regulations (19 CFR 10.24).
Section 10.16(a), Customs Regulations (19 CFR 10.16(a)),
provides that the assembly operation performed abroad may consist
of any method used to join or fit together solid components, such
as welding, soldering, riveting, force fitting, gluing,
laminating, sewing, or the use of fasteners.
Operations incidental to the assembly process are not
considered further fabrication operations, as they are of a minor
nature and cannot always be provided for in advance of the
assembly operations. However, any significant process, operation
or treatment whose primary purpose is the fabrication,
completion, physical or chemical improvement of a component
precludes the application of the exemption under HTSUS subheading
9802.00.80 to that component. See, 19 CFR 10.16(c).
The force fitting of a component into another component by
manual or pneumatic press is an acceptable assembly operation
pursuant to 19 CFR 10.16(a). Heating of the assembled plastic
PCV valves to approximately 150 degrees in order to cure the
adhesive is considered an acceptable incidental operation. The
heating process does not change the physical or chemical
properties of the components, but merely allows the two
components to be securely joined together. See, Headquarters
Ruling Letter 554069 dated April 25, 1986, which found that
heating and shaping a component are not acceptable incidental
operations where the operations are not performed in deference to
an assembly, such as heating and shaping for the purpose of
alignment to facilitate or effectuate an assembly. In the
present case, the heating operation serves the purpose of
facilitating the assembly by curing the adhesive.
HOLDING:
On the basis of the information presented, it is our opinion
that the foreign operations performed to assemble the PCV valves
are acceptable assembly operations or operations incidental
thereto. Therefore, the imported PCV valves may be entered under
subheading 9802.00.80, HTSUS, with allowances in duty for the
cost or value of the U.S. components, upon compliance with the
documentary requirements of 19 CFR 10.24.
Sincerely,
John Durant, Director
Commercial Rulings Division