CLA-2-73:OT:RR:NC:N1:116
Mr. Bruno Vaes
Cognegy
3348 Peachtree Road, NE
Atlanta, GA 30326
RE: The applicability of 9802.00.80 to electric power transmission overhead cables of United States and Belgium origin
Dear Mr. Vaes:
In your letter dated December 5, 2019, you requested a tariff classification ruling on behalf of your client, LAMIFIL N.V.
The products to be imported are described as overhead electric power transmission cables. The overhead conductors are made of soft aluminum wires that are stranded around a composite component in one, two, three, or more layers. The core component is manufactured from a high-strength composite consisting of carbon and glass fibers embedded in a toughened thermoset epoxy resin matrix. The central carbon fiber core consists of tens of thousands of high-strength, high-modulus unidirectional carbon fibers that are surrounded by a protective layer of glass fibers. The central core is manufactured in the United States (U.S.), then exported to Belgium where Belgium origin aluminum wires are stranded around the U.S. origin core. You have requested a determination as to the eligibility under 9802.00.80 for the U.S. origin material.
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 overhead cables will be 7614.90.2000, HTSUS, which provides for stranded wire, cables, plaited bands and the like, including slings and similar articles, of aluminum, not electrically insulated: other: not fitted with fittings and not made up into articles: electrical conductors. We find that the three conditions of 9802.00.80, HTSUS, are not met. While the core requires no further fabrication, the imported article requires the addition of the aluminum wires to become an electrical conductor. You also state that the value of the core is $1,663,275, while the value of the finished article, after the addition of the aluminum wires, is $3,480,750. Therefore, the article has been advanced in value and improved in condition abroad.
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