CLA-2 CO:R:C:S 557771 BLS
Ms. Judy Campbell
W.Y. Moberly, Inc.
P.O. Box 164
Sweetgrass, Montana 59484
RE: Applicability of 9801.00.10, HTSUS, to golf putters
Dear Ms. Campbell:
This is in reference to your letter dated December 15, 1993,
requesting a ruling regarding the tariff treatment of certain golf
putters under the Harmonized Tariff Schedules of the United States
(HTSUS). You ask whether the imported articles are eligible for
the partial duty exemption under HTSUS subheading 9802.00.50. We
are treating your request as an inquiry regarding the applicability
of any duty-free or partially duty-free provision to the imported
articles. In this regard, if the articles are entitled to duty-
free treatment under subheading 9801.00.10, HTSUS, then no further
classification of the items are required upon entry. You also
inquire as to the country of origin for marking purposes.
FACTS:
The golf putters, of U.S. origin, are exported to Canada,
where the head is engraved by an epoxy process with the
manufacturer's name or logo. No other operations are performed in
Canada. The putters are then returned to the U.S.
ISSUES:
1) Whether the golf putters are eligible for a duty-free or
partially duty-free provision under the HTSUS, upon return from
Canada.
2) Whether the returned articles are subject to country of
origin marking requirements.
LAW AND ANALYSIS:
Subheading 9801.0.10, HTSUS, provides for the free entry of
products of the U.S. that have been exported and returned without
having been advanced in value or improved in condition by any
process of manufacture or other means while abroad, provided the
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documentary requirements of section 10.1, Customs Regulations (19
CFR 10.1), are met. Some change in the condition of the product
while it is abroad is permissible. However, operations which
either advance the value or improve the condition of the product
while it is abroad render it ineligible for duty-free entry upon
return to the U.S. Border Brokerage Company, inc. v. United
States, 314 F. Supp. 788 (1970), appeal dismissed, 58 CCPA 165
(1970).
We have held that foreign stamping or printing of a product
to identify the manufacturer and describe the product does not
advance its value or improve its condition so as to preclude entry
under subheading 9801.00.10, HTSUS. See Headquarters Ruling Letter
(HRL) 071449 dated October 17, 1983 (surgical drapes stamped in ink
with the name of the company, size and model number, and packaged
in plastic bags were not precluded from item 800.00, Tariff
Schedules of the United States (TSUS) (now subheading 9801.00.10,
HTSUS), treatment); see also HRL 555183 dated February 15, 1989
(printing dental floss dispensers with the company name and
description of the floss type, flavor and length, and bulk-
packaged in cardboard boxes did not preclude subheading 9801.00.10,
HTSUS, treatment for the dispensers), and HRL 557701 dated April
2, 1993, silk screening of plastic bottles with company name,
identifying data, and bottle capacity, held not to preclude
subheading 9801.00.10, treatment.
We find that engraving the head of the golf putter with the
manufacturer's name or logo is analagous to the processes in the
cited cases which provide information regarding the manufacturer
and the product. Accordingly, since the engraving process in the
instant case does not advance the value or improve the condition
of the golf putters, upon return to the U.S. they may be entered
free of duty under subheading 9801.00.10, HTSUS, upon compliance
with the documentary requirements of 19 CFR 10.1. Since the
articles will be considered products of the U.S. which have been
exported and returned, they are exempted from country of origin
marking requirements. (See 19 CFR 134.32(m).)
HOLDING:
1) Engraving the head of the golf putter with the
manufacturer's name or logo does not advance the value or improve
the condition of the item while abroad. Therefore, if of U.S.
origin, the golf putters may be entered free of duty under
subheading 9801.00.10, HTSUS, upon return to the U.S., upon
compliance with the documentary requirements of 19 CFR 10.1.
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2) Upon return to the U.S., the golf putters will be exempt
from country of origin marking requirements.
Sincerely,
John Durant, Director
Commercial Rulings Division
CC: Chief, Special Merchandise Branch
New York Seaport