CLA-2 CO:R:C:S 555809 KCC
Mr. Howard Shuman
Avon Tape, Inc.
46 N. Montello St.
P.O. Box 1423
Brockton, Maine 02403
RE: Eligibility for duty-free treatment under U.S. Note 2(b),
subchapter II, Chapter 98, HTSUS, of pressure sensitive tape
manufactured in a Caribbean country from U.S. materials
Dear Mr. Shuman:
This is in response to your letter dated December 3, 1990,
requesting a ruling concerning the applicability of section 222
of the Customs and Trade Act of 1990 (Public Law 101-382), which
amended U.S. Note 2, subchapter II, Chapter 98, Harmonized Tariff
Schedule of the United States (HTSUS), to pressure sensitive
tape to be imported from a Caribbean Basin country.
FACTS:
You intend to ship woven tape and pressure adhesive of U.S.
origin to one of the countries in the Caribbean Basin area for
manufacture into pressure sensitive tape. This operation may
also involve cutting the tape to narrower widths using cutting
equipment shipped to that country. Upon competition of the
manufacturing operation, the pressure sensitive tape will be
returned to the U.S.
ISSUE:
Whether the pressure sensitive tape will be entitled to
duty-free treatment pursuant to U.S. Note 2(b), subchapter II,
Chapter 98, HTSUS, when returned to the U.S.
LAW AND ANALYSIS:
U.S. Note 2(b), subchapter II, Chapter 98, HTSUS ("Note
2(b)"), provides for the duty-free treatment of articles (other
than textile and apparel articles and petroleum and petroleum
products) which are assembled or processed in a Caribbean Basin
Economic Recovery Act (CBERA) (19 U.S.C. 2701-2706) beneficiary
country (BC) wholly of fabricated components or ingredients
(except water) of U.S. origin. This amendment was effective with
respect to goods entered on or after October 1, 1990.
To qualify for duty-free treatment under this provision, the
manufacture of the pressure sensitive tape must take place in
one of the CBERA designated BC's. The list of the CBERA
designated BC's is found in General Note 3(c)(v)(A), HTSUS, copy
enclosed.
We are of the opinion that the pressure sensitive tape, if
produced in a CBERA BC, may enter the U.S. duty-free pursuant to
Note 2(b). Only U.S. origin components or ingredients are used
during the foreign manufacturing operation, which involves
coating the woven tape with pressure adhesive and, possibly,
cutting the tape to narrower widths using cutting equipment
shipped to the CBERA country. We believe that these processes
are encompassed by the operations specified in Note 2(b). See,
Headquarters Ruling Letters (HRL) 555742 dated November 5, 1990,
and HRL 555656 dated December 24, 1990.
Enclosed is a copy of Headquarters telex 9264071 dated
September 28, 1990, to Customs field offices, setting forth
procedures for the entry of articles under Note 2(b).
HOLDING:
The pressure sensitive tape which is entirely manufactured
from U.S. materials in a CBERA BC may enter the U.S. duty-free
pursuant to Note 2(b) provided the documentation requirements set
forth in the attached telex dated September 28, 1990, are
satisfied.
Sincerely,
John Durant, Director
Commercial Rulings Division
Enclosures