CLA-2-85:RR:NC:1:108 B86559
Mr. David L. Mahan
Warner, Blue & Mahan, Inc.
1350 Connecticut Avenue, NW
Washington, D.C. 20036
RE: The tariff classification of a radar system from France.
Dear Mr. Mahan:
In your letter dated May 12, 1997, resubmitted on June 11, 1997, you requested a tariff classification ruling on behalf of Dassault Electronique.
The article to be imported, known as Rapsodie, is described as a low-cost airport surface movement radar for all-weather surveillance of aircraft and ground vehicles. The system will be assembled in France using some U.S.-manufactured components. The system has been purchased by the Federal Aviation Administration (FAA) under government contract and will be installed at the top of the FAA control tower at Norfolk International Airport, Norfolk, Virginia. The system will be tested at Norfolk but not reexported after the evaluation period.
You have also submitted information regarding the costs of final assembly of the radar system in France. You indicate that approximately fifteen percent of the landed cost to the FAA is attributable to the U.S.-manufactured components (including computer chip sets, boards and a work station) which will not be further fabricated, but, rather, simply assembled into the final product.
The applicable subheading for the radar installation will be 8526.10.0040, Harmonized Tariff Schedule of the United States (HTS), which provides for radar apparatus, other. The rate of duty will be 2 percent ad valorem.
Subheading 9802.00.8065, HTS, provides for a partial duty exemption for articles 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 imported in condition abroad except by being assembled and except by operations incidental to the assembly process such as cleaning, lubricating and painting.
The operation you describe appears to be an assembly which meets the requirements of the three listed criteria of the subheading. Therefore, the U.S.-manufactured chip sets, boards and work station will be eligible for a duty exemption under subheading 9802.00.8065, HTS, upon compliance with the regulations. The radar installation would be dutiable at the full value of the imported article, less the cost of such products of the United States. You may be required by the local port to quantify and substantiate the costs of the U.S. components and provide a more detailed description of the foreign assembly.
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 Harvey Kuperstein at 212-466-5672.
Sincerely,
Robert B. Swierupski
Chief, Metals & Machinery Branch
National Commodity
Specialist Division