CLA-2:76:OT:RR:NC:N1:117
Mr. Jeremy Ross Page
Page Fura, P.C.
311 West Superior, Suite 306
Chicago, IL 60654
RE: The tariff classification and eligibility of U.S. Goods Returned of an aluminum coupler assembly assembled in Mexico
Dear Mr Page:
In your letter dated November 2, 2018, you requested a tariff classification ruling on behalf of your client, Eaton Industrial Corporation.
The product under consideration is described as a coupler assembly comprised of four individual components; an aluminum coupler, an aluminum locking ring, a steel split gap wave spring, and a steel snap ring. You state the four components are of United States (U.S.) origin and are exported to Mexico where they are simply assembled into a coupler assembly. The assembly of the four components is stated as a three step process. The first step is to place the split gap wave spring on the coupler’s body. The second step is to align the tabs on the locking ring with the grooves on the coupler and slide the locking ring onto the coupler from the unthreaded end. The final step is to force the snap ring towards the locking ring, compressing the split gap wave spring between the coupler and the snap ring. The assembly is done by hand with occasional assistance from a manual force press. You have asked whether the coupler assembly is eligible for partial duty exemption under 9802.00.80 as U.S. Goods Returned.
Subheading 9802.00.80, Harmonized Tariff Schedule of the United States (HTSUS), provides a partial duty exemption for: Articles assembled abroad in whole or in part of fabricated components, the product of the U.S., 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, 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 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 C.F.R. §10.24). Section 10.16(a), Customs Regulations (19CFR 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, laminating, sewing, or the use of fasteners. Section 10.14(a), Customs Regulations (19 C.F.R. §10.14(a)), states 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. The applicable subheading for the aluminum coupler assembly will be 7609.00.0000, HTSUS, which provides for aluminum tube or pipe fittings (for example, couplings, elbows, sleeves). We find that all three conditions of 9802.00.80, HTSUS, are met. The aluminum coupler, the aluminum locking ring, the steel split gap wave spring, and the steel snap ring were (a) exported in condition ready for assembly without further fabrication, (b) they have not lost their physical identity by change in form, shape or otherwise, and (c) they have not been advanced in value or improved in condition. Therefore, allowances in duty may be made under subheading 9802.00.80, HTSUS, for the cost or value of the U.S. coupler assembly parts, upon compliance with the documentary requirements of 19 C.F.R. §10.24.
The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in 19 CFR 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, either directly, by reference, or by implication, is accurate and complete in every material respect.
This ruling is being issued under the assumption that the subject goods, in their condition as imported into the United States, conform to the facts and the description as set forth both in the ruling request and in this ruling. In the event that the facts or merchandise are modified in any way, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and you should resubmit for a new ruling in accordance with 19 CFR 177.2. You should also be aware that the material facts described in the foregoing ruling may be subject to periodic verification by CBP.
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 Angelia Amerson at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division