CLA-2 CO:R:C:S 557709 BLS
District Director of Customs
U.S. Customs Service
111 West Huron Street
Buffalo, New York 14202-2378
RE: Applicability of subheading 9802.00.80, HTSUS, to
vinyl window shades
Dear Sir:
This is in reference to a letter dated November 12, 1993, from
PBB Group ("PBB") on behalf of Newell Windsor Furnishings Company,
requesting a ruling that certain vinyl window shades imported from
Canada are eligible for the partial duty exemption under subheading
9802.00.80, Harmonized Tariff Schedule of the United States
(HTSUS). PBB also believes that the window shades may be
classifiable under subheading 3925.30.10, and asks our opinion as
to the proper classification of the imported articles. We
understand from Deborah Clune, PBB, that the merchandise is
presently being imported through the port of Ogdensburg, with no
claim being made under HTSUS 9802.00.80 for the cost or value of
the vinyl material.
FACTS:
You state that a shade roller, shade slat, and vinyl material
in roll form (45.5 inches wide by 6,000 yards in length), all of
U.S. origin, are sent to Canada. The vinyl is cut to a length of
2.0417 yards, and then rolled onto the self-adhesive shade roller.
The slat is then heat-sealed onto the bottom of the vinyl. The
completed 46" window shade is then packaged by using two labels of
U.S.-origin, and a poly sheet and box end label, both of Canadian
origin.
ISSUES:
1) Whether the imported vinyl window shade is eligible for the
partial duty exemption under subheading 9802.00.80, Harmonized
Tariff Schedule of the United States (HTSUS).
2) Whether the vinyl window shade is properly classifiable
under subheading 3925.30.1000, HTSUS.
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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 excepy 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 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 10.14(a), Customs Regulations (19 CFR 10.14(a)),
provides in part that the components must be in condition ready for
assembly without further fabrication at the time of their
exportation from the United States to qualify for the exemption.
Components will not lose their entitlement to the exemption by
being subjected to operations incidental to the assembly either
before, during, or after their assembly with other components.
Such incidental operations include cutting to length of wire,
thread, tape, foil and similar products exported in continuous
length. (See, 19 CFR 10.16(b)(6).)
In the instant case, cutting the vinyl material to length is
considered an acceptable operation incidental to the assembly
process pursuant to 19 CFR 10.16(b)(6). See also, e.g.,
Headquarters Ruling Letter (HRL) 555565 dated May 14, 1990, cutting
to length of cotton toweling considered to be operation incidental
to assembly. Attaching the vinyl material to the self-adhesive
shade roller and heat sealing a slat onto the bottom of the vinyl
piece, are acceptable assembly operations.
Accordingly, based on your statements that the materials are
of U.S. origin, we find that the completed window shades may be
entered under subheading 9802.00.80, HTSUS, with allowances in duty
for the cost or value of the assembled U.S.-origin vinyl material,
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shade roller, and shade slat, upon compliance with the documentary
requirements of 19 CFR 10.24. The labels of U.S.-origin are
entitled to duty-free entry under subheading 9801.00.10, HTSUS, as
products of the U.S. which are returned to the U.S. without having
been advanced in value or improved in condition abroad,upon
compliance with the documentary requirements of 19 CFR 10.1.
We also find that the imported articles are properly
classifiable in subheading 3925.30.1000, HTSUS, which provides for
shutters, blinds (including venetian blinds) and similar articles
and parts thereof... blinds.
HOLDING:
1) Upon importation from abroad, the vinyl window shade is
eligible for the partial duty exemption under subheading
9802.00.80, HTSUS, with allowances in duty for the cost or value
of the U.S.-origin vinyl material, shade roller and shade slat.
The U.S.-origin labels may be entered free of duty under subheading
9801.00.10, HTSUS.
2) The imported window shade is properly classifiable under
subheading 3925.30.1000, HTSUS, which provides for shutters, blinds
(including venetian blinds), and similar articles and parts
thereof... blinds.
Please include a copy of this ruling to PBB at 434 Delaware
Avenue, Buffalo, New York 14202.
Sincerely,
John Durant, Director
Commercial Rulings Division