CLA-2 CO:R:C:V 555692 KAC
Mr. Randall C. Willette
A.N. Deringer, Inc.
30 West Service Road
Champlain, New York 12919-9703
RE: Applicability of duty exemption available under HTSUS
subheading 9801.00.10 to solder paste packaged
abroad.Packaging;John V. Carr;C.S.D. 79-184;555624
Dear Mr. Willette:
This is in response to your letter dated June 27, 1990, on
behalf of Solution 22 International Inc., requesting a ruling
concerning the applicability of subheading 9801.00.10, Harmonized
Tariff Schedule of the United States (HTSUS), to solder paste
imported from Canada. Samples were submitted for examination.
FACTS:
Solution 22 will ship in bulk U.S.-manufactured solder
paste to Canada. In Canada, the solder paste will be packaged
into consumer size applicators and mounted on a blister card for
retail sale. The solder paste will not undergo any further
processing, such as blending or mixing, in Canada, except for the
above described packaging operations. Upon completion of the
packaging operation, the solder paste will be imported into the
U.S.
ISSUE:
Whether the solder paste is eligible for the duty exemption
available under HTSUS subheading 9801.00.10 when imported into
the U.S.
LAW AND ANALYSIS:
Subheading 9801.00.10, HTSUS, provides for duty-free entry
of U.S. products that are exported and returned without having
been advanced in value or improved in condition by any means
while abroad. Articles satisfying the above conditions of the
statute will be afforded duty-free treatment, provided the
documentary requirements of section 10.1, Customs Regulations (19
CFR 10.1), are met.
The packaging abroad of U.S.-made products will not preclude
classification under this tariff provision when there is no
improvement in condition or advancement in value of the products
themselves, apart from their containers. See, United States v.
John V. Carr & Sons, Inc., 69 Cust.Ct. 78, C.D. 4377 (1972),
aff'd 61 CCPA 52, C.A.D. 1118 (1974), in which the court stated
that absent some alteration or change in the item itself, the
mere repackaging of the item, even for the purpose of resale to
the ultimate consumer, is not sufficient to preclude the
merchandise from being classified under item 800.00, Tariff
Schedules of the United States (TSUS) (the precursor to
subheading 9801.00.10, HTSUS).
We have consistently held that packaging a finished product
from large containers into smaller containers for retail sale is
permissible under subheading 9801.00.10, HTSUS. See, C.S.D. 79-
184, 13 Cust.Bull. 1250 (1979), which held that the transfer of
brake fluid from large tanks to 12-ounce cans did not advance the
value or improve the condition of the brake fluid; and
Headquarters Ruling Letter 555624 dated May 1, 1990, which held
that U.S. perfumes packaged into sample pouches qualified for
HTSUS subheading 9801.00.10 treatment.
In the present case, the solder paste will be exported in a
finished condition to Canada to be packaged into consumer size
applicators, and will not be subjected to any other operations
prior to their return. The solder paste will not be advanced in
value or improved in condition while abroad. Accordingly, the
solder paste will qualify for treatment under HTSUS subheading
9801.00.10.
HOLDING:
On the basis of the information and samples submitted, as
the solder paste will not be advanced in value or improved in
condition abroad as a result of the packaging operation, it will
qualify for the duty exemption available under HTSUS subheading
9801.00.10, upon compliance with the documentary requirements of
19 CFR 10.1.
Sincerely,
John Durant, Director
Commercial Rulings Division