CLA-2 CO:R:C:S 556974
Mr. Phillip Freeman
Cain Customs Brokers
Progresso, Texas 78579
RE: Applicability of partial duty exemption under subheading
9802.00.80, HTSUS, to telescoping pole assemblies
Dear Mr. Cain:
This is in further reference to your letter dated October 9,
1992, on behalf of Am-Mex Products, Inc., requesting a ruling
concerning the eligibility of telescoping pole assemblies to be
imported from Mexico for the partial duty exemption under
subheading 9802.00.80, Harmonized Tariff Schedules of the United
States (HTSUS). A sample of the imported article has been
submitted.
FACTS:
The imported product is a telescoping pole used to hold a
camouflage fabric cover which, with a seat, makes a portable
hunting blind. The poles are made from aluminum tubing which is
cut to length, threaded, and painted in the U.S. The tubes are
connected by a series of plastic nuts, washers and guides.
According to the assembly description, the fitting of the
tubes and end caps consists of mechanical operations which include
insertion of the narrower tubes into the wider tubes, placing the
washers, nuts and guides over the appropriately-sized tubes, and
tightening. The end caps are firmly affixed to the appropriate
tubes by tapping with a hammer. The spring clip assembly,
consisting of a spring, a plastic pin, a molded plastic body, and
a retaining clip, is also assembled and held together with the
clip. The assembly is then tested for rigidity and adjusted
according to necessity. All component parts of the poles are
manufactured in the U.S.
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ISSUE:
Whether the telescoping pole assembly will qualify for the
partial duty exemption under subheading 9802.00.80, HTSUS, when
returned to the U.S.
LAW AND ANALYSIS:
Subheading 9802.00.80, HTSUS, provides a partial duty
exemption for:
(a)rticles 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.
All three requirements of subheading 9802.00.80, HTSUS, must be
satisfied before a component may receive a duty allowance. An
article entered under this tariff provision is subject to duty upon
the full cost or value of the imported assembled article, less the
cost or value of the U.S. components assembled therein, upon
compliance with the documentary requirements of section 10.24,
Customs Regulations (19 CFR 10.24).
Section 10.16(a), Customs Regulations (19 CFR 10.16(a)),
provides that the assembly operation 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.
Operations incidental to the assembly process are not
considered further fabrication operations, as they are of a minor
nature and cannot always be provided for in advance of the assembly
operations. However, any significant process, operation or
treatment whose primary purpose is the fabrication, completion,
physical or chemical improvement of a component precludes the
application of the exemption under subheading 9802.00.80, HTSUS,
to that component. See, 19 CFR 10. 16(c).
The various operations to be performed in Mexico to create the
telescoping pole assembly, which involve securely joining
components together by force fitting and screwing are considered
acceptable assembly operations pursuant to 19 CFR 10.16(a). (See
also, Headquarters Ruling Letter (HRL) 556293, dated January 28,
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1992 (assembly of pressure switches); and HRL 556367, dated April
15, 1992 (assembly of celluar telephone antenna). In addition,
testing and adjusting the pole assembly for rigidity is considered
to be an operation incidental to assembly pursuant to 19 CFR
10.16(b)(7).
HOLDING:
On the basis of the information provided, it is our opinion
that the operations to be performed in Mexico to create the pole
assembly are proper assembly operations or operations incidental
to assembly pursuant to subheading 9802.00.80, HTSUS. Therefore,
allowances in duty may be made under this tariff provision for the
cost or value of the U.S origin components upon compliance with the
documentary requirements of 19 CFR 10.24.
Sincerely,
John Durant, Director
Comercial Rulings Division