(abstracted as C.S.D. 89-49(13))
CLA-2 CO:R:C:V 555175 GRV
Norman Katz, Esq.
Barnes, Richardson & Colburn
475 Park Avenue South
New York, N.Y. 10016
RE: Applicability of partial duty exemption under HTSUS sub-
heading 9802.00.80 to certain ladies' sleepwear created by
applying an oven-cured inked logotype onto ladies' sleepwear
by means of heat-screen transfer, involving heat and
pressure.Solid;assembly;19 CFR 10.12(d);19 CFR
10.16(a);078580/554470.
Dear Mr. Katz:
This is in response to your letter of April 18, 1988, on
behalf of Dawson Industries, Inc., requesting a ruling on the
applicability of subheading 9802.00.80, Harmonized Tariff
Schedule of the United States (HTSUS) (formerly item 807.00,
Tariff Schedules of the United States (TSUS)), to an inked crest
pressed (heat transferred) onto ladies' sleepwear to be imported
from a Caribbean country. A sample of the ladies' sleepwear with
the crest attached thereto was submitted for examination.
FACTS:
You state that ladies' sleepwear to be assembled abroad from
U.S. components will have a crest, i.e., logotype, applied to the
front part of the garment bearing the words "Sleep Club" and the
initials "S.C." during the assembly operation. The crest will be
placed on the garment by means of a heat-screen transfer process.
The U.S.-manufactured screen consists of large sheets of paper
upon which special inks and colors are superimposed by curing in
an oven. The cured sheets of paper are exported and then pressed
onto the fabric by a heat press machine at 370-400 degrees
minimum heat at a pressure of 40-80 pounds per square inch for
5-7 seconds, after which the paper is peeled and the screen is
transfered onto the fabric.
ISSUE:
Whether the heat transfer of the inked crest to the ladies'
sleepwear constitutes an acceptable assembly operation for
purposes of HTSUS subheading 9802.00.80.
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LAW AND ANALYSIS:
Effective January 1, 1989, the HTSUS superseded and re-
placed the TSUS. TSUS item 807.00 was carried over into the
HTSUS without change as subheading 9802.00.80. This tariff
provision provides a partial duty exemption for articles:
[a]ssembled 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.
An article entered under HTSUS subheading 9802.00.80 is subject
to duty upon the full value of the imported assembled article
less the cost or value of such U.S. components, upon compliance
with the documentary requirements of section 10.24, Customs
Regulations (19 CFR 10.24).
Section 10.12(d), Customs Regulations (19 CFR 10.12(d)),
defines a fabricated component as a manufactured article ready
for assembly in the condition as exported except for operations
incidental to the assembly. Section 10.16(a), Customs Regula-
tions (19 CFR 10.16(a)), provides, in part, as follows:
The assembly operations 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....The mixing or
combining of liquids, gases, chemicals, food ingredients,
and amorphous solids with each other or with solid
components is not regarded as an assembly. (Emphasis
supplied).
In this case, as the inked crest is oven cured, it is a
solid. Further, in Ruling 078580/554470 (April 20, 1987) we held
that the application of appliques and decals by heat transfer
constitutes an acceptable assembly operation by means of heat and
pressure. Consistent with our prior ruling on this subject, we
are of the opinion that the heat transfer process employed to
transfer the cured ink crest onto the sleepwear articles consti-
tutes an acceptable assembly operation for purposes of HTSUS
subheading 9802.00.80.
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HOLDING:
On the basis of the described assembly operation and after
examining the sample submitted, it is our opinion that the cured
ink crest is a solid and that the heat transfer operation
affixing it to the ladies' sleepwear constitutes an acceptable
assembly operation for purposes of HTSUS subheading 9802.00.80.
Accordingly, allowances in duty may be made under this tariff
provision for the cost or value of the inked crest and other U.S.
fabricated components that are to be assembled abroad into the
ladies' sleepwear, upon compliance with the applicable Customs
Regulations (19 CFR 10.11-10.24).
Sincerely,
John Durant, Director
Commercial Rulings Division
cc: New York Seaport
(CLA-2-03:S:N:N3I-359-101)
(082241)