CLA-2 CO:R:C:V 555765 KCC
Mr. Richard G. Seley
Rudolph Miles & Sons, Inc.
P.O. Box 144
El Paso, Texas 79942
RE: Applicability of subheading 9802.00.80, HTSUS, to pillow
block assemblies created by forming, fitting, screwing and
gluing or riveting.Assembly; 19 CFR 10.16(a)
Dear Mr. Seley:
This is in response to your letter dated June 22, 1990, on
behalf of Emerson Power Transmission, Corp., requesting a ruling
on the applicability of subheading 9802.00.80, Harmonized Tariff
Schedule of the United States (HTSUS), to pillow block assemblies
imported into the U.S. Your request for a ruling concerning the
classification, country of origin, and implications of the
antidumping duty order on antifriction bearings from Japan
regarding the pillow block assembly was answered in Headquarters
Ruling Letter 087462 dated October 22, 1990.
FACTS:
Emerson will ship Japanese origin ball bearings (consisting
of antifriction balls separated by plastic elements enclosed in
an inner and outer race), U.S. origin grease nipples called Zerk
fittings, and U.S. origin pressure sensitive name plates to
Mexico. In Mexico, the block housing is cast and machined to
accommodate the bearing's outer race, and a hole is drilled and
tapped for the Zerk. After completion of the block housing, the
ball bearing is fitted, the Zerk is screwed on, and the name
plate is affixed (glued or riveted) to the block housing.
Upon completion of the pillow block assembly, it will be
imported into the U.S.
ISSUE:
Whether the pillow block assembly will be entitled to the
partial duty exemption under subheading 9802.00.80, HTSUS, when
imported into the U.S.
LAW AND ANALYSIS:
Subheading 9802.00.80, HTSUS, 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 subheading 9802.00.80, HTSUS, 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.
Screwing the Zerk into the block housing and affixing (by
gluing or riveting) the name plate to the block housing are
considered acceptable assembly operations. See, 19 CFR 10.16(a).
Therefore, as the U.S. components (Zerk and name plate) used in
the assembly process will be exported in condition ready for
assembly without further fabrication, 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, the returned pillow block assembly will be eligible
for the partial duty exemption under subheading 9802.00.80,
HTSUS.
HOLDING:
Based on the information submitted, we are of the opinion
that the screwing and affixing (gluing or riveting) are
acceptable assembly operations. Therefore, allowances may be
made under subheading 9802.00.80, HTSUS, for the cost or value of
the U.S. origin Zerk and name plate, which are properly assembled
into the pillow block assembly, upon compliance with the
documentary requirements of 19 CFR 10.24.
Sincerely,
John Durant, Director
Commercial Rulings Division