CLA-2-95:S:N:N8:224 807307
David Kennedy
John V. Carr & Son Inc.
P.O. Box 268
Buffalo, NY 14201
RE: The tariff classification of a "Pool Shield" from Canada.
Dear Mr. Kennedy:
In your letter dated February 17, 1995, you requested a tariff classification ruling on behalf of Hinspergers Poly Industries Ltd.
The article is described as a "Pool Shield" cover designed to be fixed to the deck of a pool so that the body of the cover is suspended above the water. All of the materials used in the pool cover, including the fabric material composing the body of the cover, the strapping material, webbing tips for the straps, thread used to join the body fabric and the straps together, and the anchor, spring and buckle hardware used to attach the straps to the pool deck, are said to be of U.S. origin.
Swimming pool covers are considered an accessory to swimming pools since they contribute to the effectiveness in maintaining swimming pools. Accordingly, the applicable subheading for the "Pool Shield" cover will be 9506.99.5500, Harmonized Tariff Schedule of the United States (HTS), which provides for swimming pools and wading pools and parts and accessories thereof. The general rate of duty will be 5.3 percent.
Next we consider whether any of the components are eligible for duty-free entry under the provisions of chapter 98, HTS. Your client states that the U.S. origin anchors, springs and adjustment buckles used as fastening hardware to attach the straps to the pool deck are not changed in any way but are imported in their original form with the pool covers. Consequently, it is our opinion that the anchors, springs and buckles are eligible for duty-free entry under subheading 9801.00.10, HTS. This hardware is manufactured in the United States, exported and returned without having been advanced in value or improved in condition by any means while abroad.
Another issue to consider is whether the imported article qualifies for a partial duty exemption under subheading 9802.00.80, HTS, which provides such an 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, lubrication, and painting.
All three requirements of subheading 9802.00.80, HTS, 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 10.14(a), Customs Regulations (19 CFR 10.14(a)), states in part that:
[t]he 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.
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, lamination, 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. An example of an operation which is considered incidental to the assembly process is the cutting to length of wire, thread, tape, foil, and similar products exported in continuous length. See section 10.16(b). 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, HTS, to that component. See 19 CFR 10.16(c).
Your letter does not make clear in what physical condition the U.S. components, including the body fabric, strapping and thread, are when exported for eventual assembly in Canada. Nor does it provide detailed documentary information relating to the nature of the operations and work performed in Canada on the U.S components.
Accordingly, if the U.S.-origin body fabric material, the strapping component, the thread and webbing tips are exported in a condition ready for assembly without further fabrication, and have not been advanced in value or improved in condition abroad except by being assembled to each other by acceptable joining methods such as sewing, hemming and the like, the subject covers may qualify for treatment under subheading 9802.00.80, HTS, with allowances in duty for the cost or value of those U.S. components incorporated therein. The "Pool Shield" cover may then be subject to duties on its full value (excluding the U.S. hardware) less the value of the U.S. fabricated fabric, straps, thread and webbing tips, upon compliance with the documentary requirements of section 10.24, Customs Regulations, in accordance with subheadings 9801.00.10 and 9802.00.80, HTS.
This ruling is being issued under the provisions of Section 177 of the Customs Regulations (19 C.F.R. 177).
A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise is imported. 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,
Jean F. Maguire
Area Director
New York Seaport