CLA-2 CO:R:C:V 555218 GRV
Mr. David S. Simpson, Jr.
Joffroy Customs Brokers, Inc.
Nogales Foreign Trade Zone
Nogales, Arizona 85628-0698
RE: Applicability of partial duty exemption under HTSUS sub-
heading 9802.00.80 to guitar strings from Mexico
Dear Mr. Simpson:
This is in response to your letter of December 7, 1988, on
behalf of The Martin Guitar Company, requesting a ruling on the
applicability of item 807.00, Tariff Schedules of the United
States (TSUS) (now subheading 9802.00.80, Harmonized Tariff
Schedule of the United States (HTSUS)), to guitar strings to be
made in Mexico. Samples of the U.S. components and the finished
guitar string were submitted for examination.
FACTS:
You state that hex core ball ended wire (core wire) and
brass wrap wire (wrap wire) of U.S. manufacture, cut to length in
the U.S., will be exported to Mexico for assembly into guitar
strings. The core wire has microscopic slats (tiny grooves) in
it which allows the wrap wire to be received and held permanent-
ly to the core wire. The assembly operation entails placing a
core wire in the jaws of a winding machine, threading a wrap wire
through the loop in the core wire at one end and wrapping the
wrap wire onto the core wire to create a guitar string. The
other end of the wrap wire is permanently joined to the core wire
by the slats. The guitar string is then removed from the winding
machine and put into a cleaning solution, which protects the
string against corrosion. The guitar string is then dried on a
rack, packaged and returned to the U.S.
ISSUE:
Whether the wire winding operation constitutes an acceptable
"assembly," thereby entitling the guitar strings to the partial
duty exemption under HTSUS subheading 9802.00.80 when returned to
the U.S.
LAW & ANALYSIS:
HTSUS subheading 9802.00.80 provides a partial duty exemp-
tion for:
[a]rticles assembled abroad in whole or in part of fab-
ricated 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 of the Customs
Regulations (19 CFR 10.24).
Assembly operations for purposes of HTSUS subheading
9802.00.80 are interpreted at section 10.16(a), Customs Regula-
tions (19 CFR 10.16(a)), which states that the assembly opera-
tions performed abroad may consist of any method used to join or
fit together solid components.
Operations incidental to the assembly process are not con-
sidered further fabrication operations, as they are of a minor
nature and cannot always be provided for in advance of the assem-
bly operation. Examples of operations considered incidental to
the assembly process are delineated at section 10.16(b), Customs
Regulations (19 CFR 10.16(b)). The first and third examples pro-
vide for cleaning and the application of preservative coatings.
In the present case, the description of the foreign opera-
tion and an examination of the sample submitted show that the
guitar strings to be imported will be eligible for the partial
duty exemption available under HTSUS subheading 9802.00.80. The
core and wrap wires to be exported are finished/completed fabri-
cated components, the product of the U.S. Once abroad, the core
wire is securely wrapped with the wrap wire, such that the two
wires are permanently joined together, which constitutes an
acceptable means of assembly, within the meaning of 19 CFR
10.16(a). The subsequent application of a cleaning solution to
preserve the guitar string constitutes an acceptable incidental
operation, within the legal meaning of 19 CFR 10.16(b). Fur-
ther, an examination of the sample submitted shows that the
exported wires do not lose their physical identity in the
assembly operation, and that they are not advanced in value or
improved in condition except by assembly operations or operations
incidental thereto.
CONCLUSION:
On the basis of the described foreign assembly operation and
after examining the samples submitted, the wire winding operation
is deemed to constitute an acceptable assembly operation under
HTSUS subheading 9802.00.80, and, therefore, the guitar strings
will be eligible for the partial duty exemption under that tariff
provision when returned to the U.S., upon compliance with the
documentary requirements of 19 CFR 10.24.
Sincerely,
John Durant, Director
Commercial Rulings Division