CLA-2 RR:CR:SM 560775 MLR
Diane L. Weinberg, Esq.
Wendt, Weinberg & Temples, L.L.C.
The Candler Building, Suite 1303
127 Peachtree Street, N.E.
Atlanta, GA 30303-1800
RE: Applicability of duty exemption under HTSUS subheading
9801.00.10 to ribbons printed abroad; company name;
logo
Dear Ms. Weinberg:
This is in reference to your letter of December 10,
1997, on behalf of Lawrence Schiff Silk Mills, Inc.
(hereinafter "LSSM"), requesting a ruling on the
applicability of subheading 9801.00.10, Harmonized Tariff
Schedule of the United States (HTSUS), to certain ribbons
printed abroad. Samples of printed and unprinted ribbons
were submitted with your request. Your country of origin
marking request will be answered in a separate ruling,
560765, along with your submissions dated December 2 and 3,
1997.
FACTS:
It is stated that LSSM manufactures ribbon by weaving
U.S. yarn in its plant in Pennsylvania. The ribbon is used
for packaging, primarily for wrapping cosmetic items. It is
stated that the ribbon will be sent to France to be printed
generally with the names or logos of cosmetic companies.
The printing process produces a raised ink logo. The sample
submitted contains the printing "1947 Sin Rejac 50 Ans". It
is stated that the unprinted ribbon will be exported in a
variety of styles and fibers on 200 to 250 yard spools, and
that the printed ribbon will be imported from France on the
same rolls. After importation into the U.S., it is stated
that the ribbon will be cut and rewound on smaller rolls, or
made into a bow or ribbon hanks. By telephone, you
confirmed that the ribbon will not be dyed abroad.
ISSUE:
Whether the U.S.-origin ribbons exported to France for
printing will be entitled to duty-free treatment under
subheading 9801.00.10, HTSUS, when returned to the U.S.
LAW AND ANALYSIS:
Subheading 9801.00.10, HTSUS, provides for the free
entry of products of the United States that have been
exported and returned without having been advanced in value
or improved in condition by any process of manufacture or
other means while abroad, provided the documentary
requirements of section 10.1, Customs Regulations (19 CFR
10.1), are met. Some change in the condition of the product
while it is abroad is permissible. However, operations
which either advance the value or improve the condition of
the exported product render it ineligible for duty-free
entry upon return to the United States. Border Brokerage
Company, Inc. v. United States, 314 F. Supp. 788 (1970),
appeal dismissed, 58 CCPA 165 (1970).
Customs has held that foreign stamping or printing of a
product to identify the manufacturer and describe the
product does not advance its value or improve its condition
so as to preclude entry under 9801.00.10, HTSUS. See
Headquarters Ruling Letter (HRL) 071449 dated October 17,
1983 (surgical drapes stamped in ink with the name of the
company, size, and model number, and packaged in plastic
bags were not precluded from item 800.00, Tariff Schedules
of the United States (TSUS) (now 9801.00.10, HTSUS),
treatment); see also, HRL 555183 dated February 15, 1989,
(printing dental floss dispensers with the company name and
description of the floss type, flavor and length, and bulk-packaged in cardboard boxes did not preclude subheading
9801.00.10, HTSUS, treatment for the dispensers); HRL 557071
dated April 2, 1993 (plastic bottles labeled by a silk
screening process with a company name, identifying data of a
product, instructions, and the bottle's capacity were
eligible for subheading 9801.00.10, HTSUS, treatment); and
HRL 557771 dated May 26, 1994 (golf putters, of U.S. origin,
engraved by an epoxy process with the manufacturer's name or
logo in Canada, were eligible for duty-free entry under
subheading 9801.00.10, HTSUS, upon return to the U.S.).
In the instant case, the ribbon will be printed with
company names and logos. We find this type of printing to
be analogous to the printing involved in the rulings cited
above where the company name was printed on the surgical
drapes and dental floss dispensers. Therefore, we find that
printing the ribbon in France will not preclude subheading
9801.00.10, HTSUS, treatment, upon their return to the U.S.
HOLDING:
On the basis of the information and samples submitted,
the ribbons woven from U.S. yarn in the U.S., exported for
printing in France with a company name and/or logo will be
eligible for duty-free treatment under subheading
9801.00.10, HTSUS, when returned to the United States,
provided the documentation requirements of 19 CFR 10.1 are
satisfied.
A copy of this ruling letter should be attached to the
entry documents filed at the time the goods are entered. If
the documents have been filed without a copy, this ruling
should be brought to the attention of the Customs officer
handling the transaction.
Sincerely,
John Durant, Director
Commercial Rulings Division