CLA-2 CO:R:C:G 083525 HP
Mr. Bruce E. Benedict
Attorney-In-Fact
John V. Carr & Son, Inc.
P.O. Box 33479
Detroit, MI 48232-5479
RE: Classification of polyisobutylene roofing material
Dear Mr. Benedict:
This is in reply to your letter of December 12, 1988,
concerning the tariff classification of polyisobutylene roofing
material, produced in Canada from Canadian and U.S. materials,
under the Harmonized Tariff Schedule of the United States An
notated (HTSUSA). Please reference your client Trent Rubber
Services Limited.
FACTS:
The merchandise at issue consists of a needleloom felt of
100
percent polyester fiber construction, produced in the United
States,
and that, in Canada, has been laminated to a compact
polyisobutylene ("PIB") synthetic rubber material, approximately
120 mil, to form roofing material. We assume that the PIB
material
is not "hard rubber," as defined in the Explanatory Note to
Chapter
40, HTSUSA. The laminated fabric weighs approximately 81 ounces
per square yard (over 1.492 kg/m2), with the rubber portion
clearly
comprising over 50 percent by weight of the fabric. The felt is
formed by a web laying device and mechanically intertwined with
special needles. The types of machinery used in making the felt
are a random air web layer device and a needle loom.
ISSUE:
Whether the fabric is considered an article of American
components under HTSUSA?
LAW AND ANALYSIS:
Heading 5602, HTSUSA, provides for, inter alia, laminated
needleloom felt. The General Rules of Interpretation (GRI's) to
the
HTSUSA govern the classification of goods in the tariff schedule.
GRI 1 states, in pertinent part:
... classification shall be determined according to the
terms of the headings and any relative section or
chapter
notes ....
Goods which cannot be classified in accordance with GRI 1 are to
be classified in accordance with subsequent GRI's, taken in order
.
Note 3 to Chapter 56, HTSUSA, states that heading 5602 does
not cover:
(a) Felt impregnated, coated, covered or
laminated with ... rubber, containing 50
percent or less by weight of textile
material or felt completely embedded in
... rubber (chapter ... 40).
The Explanatory Notes to the HTSUSA constitute the official
interpretation of the tariff at the international level. The
Explanatory Note to heading 5602 states that this heading "
includes
roofing felt made by the normal felting process and subsequently
impregnated with tar or similar substances." The Explanatory
Note
does specifically state, however, that "the heading does not
cover
[articles referred to in Note 3, supra.]" The roofing materials,
therefore, cannot be classified in heading 5602, HTSUSA.
Chapter 40, HTSUSA, provides for rubber and articles thereof
.
The General Explanatory Notes provides:
Rubber and textile combinations
The classification of rubber and textile
combinations is essentially governed by ...
Note
3 to Chapter 56 .... The following products
are covered by this Chapter:
(a) Felt impregnated, coated, covered or
laminated with rubber, containing 50% or
less by weight of textile material, and
felt completely embedded in rubber;
* * *
Heading 4008, HTSUSA, provides for, inter alia, sheets of
vulcanized rubber, other than hard rubber. The Explanatory Note
to this heading states that included herein are:
* * *
(B) Felt impregnated, coated, covered or
laminated with vulcanised rubber (other
than hard rubber) containing 50% or less
by weight of textile material or
completely embedded in rubber.
HOLDING:
The PIB roofing material is therefore classifiable, either under
subheading 4008.11.5000, 6.6 percent ad valorem, if of cellular
rubber, or under subheading 4008.21.0000, HTSUSA, 3.4 percent ad
valorem, if of noncellular rubber, as plates, sheets, strip, rods
and
profile shapes, of vulcanized rubber other than hard rubber,
plates,
sheets and strip.
Subheading 9802.00.80, HTSUSA, provides a partial duty
exemption for:
Articles 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, lubricating and
painting. [Merchandise covered by this
subheading was previously covered by heading
807.00, Tariff Schedule of the United States
(TSUS).]
All three requirements of HTSUSA subheading 9802.00.80 must
be satisfied before a component may receive a duty allowance. An
article entered under HTSUSA subheading 9802.00.80 is subject to
a
duty upon the full value of the imported article, less the cost
or
value of the U.S. components assembled therein, provided there
has
been compliance with the documentary requirements of section
10.24, Customs Regulations (19 CFR 10.24).
It is our opinion that the Canadian operation constitutes a
simple assembly of solids. See HRL 555361 of August 3, 1989
(citing C.J. Tower & Sons of Buffalo, Inc. v. United States, 304
F.
Supp. 1187, 62 Cust. Ct. 643, C.D. 3840 (1969). The instant
merchandise is therefore eligible for partial duty exemption
under
HTSUSA subheading 9802.00.80, HTSUSA, when returned to the
U.S., upon compliance with the documentary requirements set forth
in section 10.24 of the Customs Regulations.
Sincerely,
John Durant, Director
Commercial Rulings Division