CLA-2-98:OT:RR:NC:N1:118
Mr. Jacques Louis Theuvenin
Theuvenin Consulting Inc.
75 Brookside Avenue
Allendale, NJ 07401
RE: The tariff classification of an offset printing press returned from Brazil after refurbishing. Applicability of Harmonized Tariff Schedule of the United States (HTSUS) subheading 9802.00.50.
Dear Mr. Theuvenin:
In your letter dated April 11, 2017, you requested a tariff classification ruling on a U.S. made offset printing press that will be shipped to Brazil for refurbishing and then imported back to the United States.
The dry-offset printing press, described as a model 560 cup printer, is used for direct printing on thermoformed or injected plastic cups. It is neither reel-fed nor sheet-fed.
At the time of exportation to Brazil the printing press will include all the essential components for the machine to operate. In Brazil the printing press is dismantled and all components are evaluated and inspected.
The refurbishing process will include the following:
Frame is cleaned and painted
New A/C motor is installed and fitted with drives belts and pulleys
Offset cylinder is surfaced and balanced
Print heads are replaced
New electrical components are installed
Color head is rebuilt
The printing press is then reassembled and inspected before export back to the United States. You have stated that upon reimportation into the U.S., the machine is considerably advanced in value but will retain its original identity and function.
Articles exported from and returned to the U.S., after having been advanced in value or improved in condition by repairs or alterations, may qualify for a duty exemption under subheading 9802.00.50, HTSUS, provided the foreign operation does not destroy the identity of the exported articles or create new or commercially different articles through a process of manufacture. Based upon the information you provided, the operations performed in Brazil on the offset printing press are considered “repairs and alterations” within the meaning of subheading 9802.0050, HTSUS. We have further determined that these operations have advanced the value and improved the condition of the offset printing press.
Therefore, the offset printing press is eligible for full duty exemption under subheading 9802.00.5060, HTSUS, upon compliance with the documentation requirements of 19 C.F.R 10.8. Per Statistical Note 2 to Chapter 98, the citation to be used for statistical reporting must also include the classification that would ordinarily apply to the article as provided for in Chapters 1 through 97 of the HTSUS. The classification that would ordinarily apply to this item is 8443.13.0000, HTSUS, which provides for printing machinery used for printing by means of plates, cylinders…: other offset printing machinery.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Anthony E. Grossi at [email protected]
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division