CLA-2-62:OT:RR:NC:N3:357

Lincoln Smith
Zenitec Holdings Ltd
302 Bond Street
Invercargill 9810
New Zealand

RE: Applicability of 9802.00.80, HTSUS, to materials used to manufacture protective chainsaw legwear

Dear Mr. Smith:

This is in reply to your letter dated April 2, 2025, requesting a ruling on the application of subheading 9802.00.80, Harmonized Tariff Schedule of the United States (HTSUS), to protective chainsaw legwear.

In your letter, you state your company, Zenitec Holdings Ltd, manufactures a range of chainsaw protective legwear. You also state that, in 2017, you obtained a classification ruling for the legwear under ruling N282430, which classified the goods in heading 6211, Harmonized Tariff Schedule of the United States (HTSUS).

You state that until now the protective legwear fabric was manufactured using protective fabric sourced from Australia and outer layer fabrics sourced from various countries. You now intend to source the protective legwear fabric from the United States (U.S.) and are inquiring whether this change in sourcing will allow for a partial duty exemption under subheading 9802.00.80.

You confirmed in correspondence with this office that you intend to import U.S. made protective fabric into New Zealand. In New Zealand, the US made fabric will be cut into component parts and assembled with other components cut in New Zealand from foreign fabrics. Once assembled, the completed legwear is tagged, packaged, and shipped for importation into the U.S.

Subheading 9802.00.80, HTSUS, provides for:

Articles, except goods of heading 9802.00.91 and goods imported under provisions of subchapter XIX of this chapter and goods imported under provisions of subchapter XX, 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, lubricating and painting.

To qualify for a partial duty exemption under 9802.00.80, HTSUS, all three conditions must be met. An article entered under subheading 9802.00.80, HTSUS, is subject to duty upon the full value of the imported assembled articles less the cost or value of the U.S components, upon compliance with the documentary requirements of 19 C.F.R. § 10.24.

Section 10.14(a), U.S. Customs and Border Protection (CBP) Regulations (19 C.F.R. § 10.14(a)), states in part:

[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), CBP Regulations (19 C.F.R. § 10.16(a)), provides in part:

[t]he assembly operations performed abroad may consist of any method used to join or fit together solid components, such as welding, soldering… gluing, laminating, sewing….

Operations incidental to the assembly process are not considered further fabrication, as they are of a minor nature and cannot always be provided for in advance of the assembly operation. Examples of operations considered incidental to the assembly process are outlined in section 10.16(b), Customs Regulations (19 C.F.R. § 10.16(b)), and specifically cites cutting to length of thread and similar products exported in continuous lengths.

However, any significant process, operation, or treatment whose primary purpose is the fabrication, completion, or physical or chemical improvement of a component precludes the application of the exemption under subheading 9802.00.80, HTSUS. An example of an operation not considered incidental to assembly is cutting of garment parts according to pattern from exported material. (See 19 C.F.R. § 10.16(c)) Similarly, uncut textile fabrics exported in bolts and cut abroad according to a pattern to make wearing apparel components are not regarded as fabricated components. (See 19 C.F.R. § 10.14(a))

Since the U.S. origin fabric is exported to New Zealand in uncut bolts or rolls, and is subsequently cut into component parts before being sewn into garments, the operation constitutes a fabrication of the components abroad. Therefore, no allowance in duty is permitted under subheading 9802.00.80, HTSUS, for the cost or value of the U.S. origin fabric when the protective legwear is imported into the U.S.

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 Title 19, Code of Federal Regulations (C.F.R.), Section 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, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at the time of importation, you should bring this to the attention of U.S. Customs and Border Protection and submit a request for a new ruling in accordance with 19 C.F.R. 177.2. Additionally, we note 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 Deanna Boldt via email at [email protected].
Sincerely,

Steven A. Mack
Director
National Commodity Specialist Division