CLA-2-95:RR:NC:2:224 F84336
William P. McElravy, Jr.
Amber Dr. (off Sylvania Rd)
RD #3, Box 301-B-3
Slippery Rock PA 15057
RE: The tariff classification of fishing flies from Kenya.
Dear Mr. McElravy:
In your letter dated March 14, 2000, you requested a tariff classification ruling.
Facts:
According to your submission, fishing flies to be sold in the United States are assembled into finished form in Kenya from U.S. chicken feathers, hooks of foreign origin, and domestic artificial or natural fly tying materials such as thread and metal wire and bead heads.
The feathers and all the other materials used to attach the feathers to the flies and tie the flies will be exported from the U.S. whereupon an assembler in Kenya will tie the flies to specifications.
Issue:
Whether, under the facts presented an allowance in duty is permitted under subheading 9802.00.80, HTSUS, for the cost or value of the U.S.-origin materials.
Law and Analysis:
The applicable subheading for sport fishing flies is 9507.90.7000, Harmonized Tariff Schedules of the United States (HTSUS), the provision for "Fishing rods, fish hooks and other line fishing tackle***: Other: Other, including parts and accessories: Artificial baits and flies." The rate of duty is 9 percent ad valorem.
Subheading 9802.00.80, HTSUS, provides a partial duty exemption for -
Articles, except goods of heading 9802.00.90, assembled abroad in
whole or in part of fabricated components, the product of the United
States, which were (a) 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 HTSUS subheading 9802.00.80 is subject to duty upon the full value of the imported article, less the cost or value of the U.S. components assembled therein, provided there has been compliance with the documentary requirements of section 10.24, Customs Regulations (19 CFR 10.24).
Section 10.14 (a), Customs Regulations (19 CFR 10.14), states in part:
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 inci-
dental to the assembly either before, during or after their assembly
with other components.
Section 10.16(a), Customs Regulations (19 CFR 10.16), 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.
Operations incidental to the assembly process are not considered further fabrication operations, as they are of a minor nature and cannot always be provided for in advance of the assembly operations. See 19 CFR 10.16(b). However, any significant process, operation, or treatment whose primary purpose is the fabrication, completion, physical or chemical improvement of a component precludes the application of the exemption under subheading 9802.00.80, HTSUS, to that component. See 19 CFR 10.16(c).
In the instant case, your letter does not detail the condition of the components and materials at the time of exportation from the U.S. for eventual assembly in Kenya. Nor are we provided information detailing the nature of any processing operations that are necessary to prepare the exported materials for assembly and whether any pre-assembly work is considered a significant process or operation which is not incidental to the assembly operation. This information should be submitted to the appropriate Customs officers at the intended port of entry for their review. However, if we assume the exported components and materials with the exception of the foreign-made hooks are fully fabricated components of the U.S. at the time of exportation and are in condition ready for assembly into fishing flies, an allowance in duty may be granted for the cost or value of the U.S. origin components under subheading 9802.00.80, HTSUS, upon compliance with the documentary requirements of 19 CFR 10.24. However, no allowance in duty may be made for the cost or value of the hooks because they are of foreign origin.
This ruling is being issued under the provisions of Section 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 Tom McKenna (212) 637-7011.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division