CLA-2-82:R:N4:119 817764
Mr. Jack D. Mlawski
Galvin & Mlawski
440 Park Avenue South - 9th Floor
New York, NY 10016-8067
RE: The tariff classification and country of origin marking of parts of a knife from Taiwan or Hong Kong
Dear Mr. Mlawski:
In your letter dated December 12, 1995 you requested a tariff classification and country of origin marking ruling on behalf of Zelco Industries, Mt. Vernon, NY.
The articles to be imported are parts of a fixed blade knife to be assembled in the United States. The finished sample that you furnished measures 3 inches in overall length, has a 1 1/2 inch sharp pointed blade, a cylindrical sheath or cap that covers the blade when not in use. The knife is attached to a key ring. The components to be imported are the following:
Item K11402 is a part of the handle which is manufactured in Taiwan from a titanium pipe of U.S. origin. The pipe is cut to length and five decorative burrs are machined into the surface. You consider the work done in Taiwan to be an alteration and you are claiming partial duty exemption under 9802.00.40. Alternatively you are claiming partial duty exemption under 9802.00.60 for articles of metal returned to the U.S. for further processing.
Item K11004 is the plastic removable sheath for the blade.
Item K11005 is a plastic plug-end which fits into the top of the handle and to which is attached the key ring.
Item K11003 is a plastic part that forms a joint between the blade and the handle.
Item K11418/K11419 is a key ring made of stainless steel wire with a small amount of brass in the closure section.
The applicable subheading for the titanium part (K11402) will be 8108.90.3060, Harmonized Tariff Schedule of the United States (HTS), which provides for articles of titanium. The duty rate will be 5.5 percent.
The claim for partial duty exemption under 9802.00.40, HTS, as an alteration for the titanium part cannot be allowed. The courts have previously ruled that "repairs and alterations are made to completed articles and do not include intermediate processing operations which are performed as a matter of course in the preparation or the manufacture of finished articles." See Dolliff & Company, Inc. v. United States, C.A.D 1225.
The claim for partial duty exemption under 9802.00.60 is also denied. It has been the Customs Service's position that "in order to meet the requirements of further processing, some operations must be applied to the metal articles that will change their shape or form or impart new and different properties which become an integral part of the metal itself." There is no indication that the titanium part will undergo the type of further processing that is required to qualify for this provision.
The applicable subheading for the plastic sheath (K11004) will be 3923.50.0000, HTS, which provides for stoppers, lids, caps and other closures. The rate of duty will be 5.3 percent.
The applicable subheading for the two plastic components (K11005 and K11003) will be 3926.90.9890, HTS, which provides for other articles of plastics... other. The rate of duty will be 5.3 percent.
The applicable subheading for the key ring will be 7326.20.0050, HTS, which provides for articles of iron or steel wire. The rate of duty will be 5 percent.
In regard to the country of origin marking requirement, since these components will not be sold in their imported condition but will be used in the manufacture of finished knives, Zelco Industries is considered to be the ultimate purchaser of these components and only the containers need be marked with the country of origin.
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.
If you have any questions pertaining to this matter, please contact National Import Specialist Jacques Preston of this office at (212) 466-5488.
Sincerely,
Roger J. Silvestri
Director
National Commodity
Specialist Division