CLA-2 CO:R:C 555773 RA
Ms. Carolyn Bosanko
Designer, BOS Sexy playwear
4444 A. Wahine Koa Place
Honolulu, Hawaii 96821
RE: Applicability of subheading 9802.00.80, HTSUS, to certain
brassieres and bustiers assembled in Indonesia from U.S.
components
Dear Ms. Bosanko:
This is in response to your inquiry of September 22, 1990,
addressed to the Regional Commissioner of Customs, New York Region,
and referred to this office for reply on the tariff status of
certain brassieres and bustiers assembled in Indonesia from
U.S.-made fabric, beads, ribbons, and other trims.
FACTS:
You state that various fabrics and ornamentations are
purchased from U.S. companies and sent to Indonesia where the
fabrics will be sewn together and the ornamentation attached by
sewing. The ornamentation consists of glass or plastic beads,
ribbons, trim, and appliques. A sample of the finished product,
consisting of a black bustier on which beads have been sewn to
simulate leaves or flowers, has been submitted.
ISSUE:
1. Whether the assembled garments are eligible for the
partial duty exemption under subheading 9802.00.80, Harmonized
Tariff Schedule of the United States (HTSUS).
2. What is the tariff classification of the assembled
garments?
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
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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.
Articles entered under this tariff provision are subject to
a duty upon the full value of the imported assembled articles,
less the cost or value of the U.S. components assembled therein,
provided there has been compliance with the documentation
requirements of section 10.24, Customs Regulations (19 CFR
10.24), copy enclosed. The exemption applies only to fabricated
components of U.S. origin, and the fact that components were
purchased in the U.S. is insufficient, by itself, to establish
that they were produced in the U.S.
"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 sewing as an acceptable means of
assembly. In Headquarters Ruling Letter 555293 dated January 16,
1990, we held that U.S. denim blue jean jackets to which U.S.
rhinestones were attached abroad by a crimping process were
eligible for the partial exemption under subheading 9802.00.80,
HTSUS. 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).
Accordingly, allowances in duty may be made for fabricated
components of U.S. origin which are assembled abroad by sewing to
form brassieres and bustiers, upon compliance with the
documentation requirements of 19 CFR 10.24 (copy enclosed).
The finished assembled brassieres are classifiable in
subheading 6212.10.1020, HTSUS ("Brassieres, girdles ... and
similar articles; brassieres: Containing lace, net or
embroidery; Of man-made fibers"), which provides for a duty rate
of 32% ad valorem. The textile category number is 649. The
assembled bustiers are classifiable in subheading 6212.90.0030,
HTSUS (,,Brassiers, girdles ... and similar articles; Other; Of
man-made fibers"), which provides for a duty rate of 7% ad
valorem. The textile category number is 659. Your sample is
returned under separate cover.
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HOLDING:
Fabricated components consisting of fabrics and
ornamentation of U.S. origin assembled abroad by sewing to form
brassieres or bustiers are eligible for duty allowances under
subheading 9802.00.80, HTSUS, provided the documentation
requirements of 19 CFR 10.24 are met. The assembled brassieres
and bustiers are classifiable in subheadings 6212.10.1020 and
6212.90.0030, HTSUS, respectively.
Sincerely,
John Durant, Director
Commercial Rulings Division
Enclosure