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HQ 555689


December 20, 1990

CLA-2 CO:R:C:V 555689 LS

CATEGORY: CLASSIFICATION

TARIFF NO.: 9802.00.80

Mr. R. B. McKenny
John V. Carr & Son, Inc.
P.O. Box 307
Derby Line, Vermont 05830

RE: Applicability of partial duty exemption under subheading 9802.00.80, HTSUS, to two types of pintlepins formed by swaging, cutting to length, cleaning, rounding, and braiding. Assembly; incidental operation; 555594; 553593; 555128.

Dear Mr. McKenny:

This is in response to your letter dated July 2, 1990, on behalf of Lippert Pintlepin Mfg. Inc., requesting a ruling on the applicability of subheading 9802.00.80, Harmonized Tariff Schedule of the United States (HTSUS), to two types of pintlepins. Samples were submitted for examination.

FACTS:

The following facts are based upon two letters dated June 29, 1990 and a supplemental letter dated November 13, 1990, from Lippert Pintlepin, and several telephone conversations between a representative of Lippert Pintlepin and a member of my staff.

Lippert Pintlepin is planning to ship to the U.S. two types of pintlepins which it produces in Canada. The pintlepins are primarily sold for use on conveyor belts and belts on pulp and paper making machinery. The pintlepin fits between two sets of rings on these belts.

Both types of pintlepins have three common components--a monofilament, which can be made of nylon, polyester or peek; a brass or stainless steel tubing; and a wire, which may be made of stainless steel or oil tempered steel--all of which are manufactured in the U.S. and exported to Canada. The two types of pintlepins differ in that one contains a plain clear monofilament, whereas the other contains a clear monofilament encased with a braided nomex fiber which serves to strengthen the
monofilament. When the pintlepins are put into use on a belt, the wire and tubing serve only to thread the monofilament into the belt. Once the monofilament is inside the belt, the wire and tubing are severed and discarded.

In manufacturing the latter type pintlepin, the nomex thread is imported from the U.S. on bobbins. A braiding machine then takes 8 to 16 strands of nomex threads from bobbins and braids them over the monofilament. The machine simultaneously braids the threads, dyes them a purplish color, and applies glue. The glue serves to hold the nomex fibers to the monofilament. When the monofilament is removed from the braiding machine, it is completely encased by the braided nomex fibers. Both the glue and dye are also of U.S. origin.

The following operations apply to both types of pintlepins. The wire is imported into Canada either precut or in coils. In the case of the coiled wire, it is cut to the desired length. The oil tempered wire is wiped clean to remove any excess oil. The cut end of the wire is rounded or filed to prevent it from catching onto and tearing the material of the belt onto which the completed pintlepin is threaded. The monofilament is also imported precut or on spools. The spooled monofilament is cut to the desired length in Canada.

The next series of steps consist of joining the clear monofilament or the nomex covered monofilament with the wire by means of the tubing. This is accomplished by a machine which swages the wire to the tubing, and then the monofilament to the tubing. This swaging or swedging operation involves squeezing the tubing down onto the wire and monofilament, thus securely joining the tubing to the wire and the monofilament to the tubing. A representative of Lippert Pintlepin states that this operation does not permanently affect the shape of the monofilament, wire, or tubing.

After the completed pintlepins are rolled, tags are attached to indicate their length and size. Plastic zip-lock bags are used to package the pintlepins, with one or two per bag. Explanatory installation sheets are inserted in some of the bags prior to shipping.

ISSUES:

(1) Whether the pintlepin, consisting of a clear monofilament, tubing, and wire, will qualify for the partial duty exemption under subheading 9802.00.80, HTSUS, when imported into the U.S.

(2) Whether the pintlepin, consisting of a tubing, wire, and clear monofilament encased with braided nomex fibers, will
qualify for the partial duty exemption under subheading 9802.00.80, HTSUS, when imported into the U.S.

LAW AND ANALYSIS:

Subheading 9802.00.80, HTSUS, provides a partial duty exemption for:

[a]rticles 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.

All three requirements of subheading 9802.00.80, HTSUS, must be satisfied before a component may receive a duty allowance. An article entered under subheading 9802.00.80, HTSUS, is subject to duty upon the full value of the imported assembled article less the cost or value of the U.S. components, upon compliance with the documentary requirements of section 10.24, Customs Regulations (19 CFR 10.24).

I. Pintlepin consisting of clear, unencased monofilament, tubing, and wire

The assembly operations 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. See section 10.16(a), Customs Regulations (19 CFR 10.16(a)). Assembly operations may be preceded, accompanied, or followed by operations incidental to assembly, such as those delineated in 19 CFR 10.16(b).

We find that the swaging operation whereby the wire is joined to the tubing and the monofilament to the tubing constitutes an acceptable assembly operation since it is a type of force fitting. Cleaning the oil tempered wire, cutting the monofilament and wire to length, and rounding the cut end of the wire are all considered operations incidental to the assembly process pursuant to 19 CFR 10.16(b)(1),(4), and (6).

We find that the U.S. fabricated components, consisting of the clear monofilament, tubing, and wire, are in a condition ready for assembly without further fabrication, do not lose their physical identities in the assembly operation, and are not otherwise advanced in value or improved in condition except by an assembly operation and operations incidental thereto. Therefore,
an allowance in duty may be made under subheading 9802.00.80, HTSUS, for the cost or value of these three components when the pintlepin is imported into the U.S. However, no allowance may be made for the glue because, as a liquid, it is not a fabricated component of a type designed to be fitted together with other components. The legislative history of subheading 9802.00.80, HTSUS, makes it clear that the exemption applies to U.S.-made fabricated components which are of types designed to be fitted together with other components, and does not apply to chemical products, food ingredients, liquids, gases, powders, etc. H.R. Rep. No. 342, 89th Cong., 1st Sess. 49 (1965).

II. Pintlepin consisting of a tubing, wire, and clear monofilament encased with braided nomex fibers

Our first inquiry with respect to this pintlepin is whether the braiding of the nomex threads over the monofilament constitutes an acceptable assembly operation or operation incidental to assembly.

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 operation. See 19 CFR 10.16(a). 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. See 19 CFR 10.16(c).

In Headquarters Ruling Letters (HRL) 555594 dated May 16, 1990, 555128 dated January 9, 1989, and 553593 dated May 16, 1985, we held that passing yarn through braiding machines to produce braided rope or cordage is analogous to weaving fabrics from spun yarn and, therefore, is considered a manufacturing process that does not qualify as an assembly operation within the meaning of subheading 9802.00.80, HTSUS.

Applying these rulings to the instant case, we find that the braiding of the nomex fiber threads is considered a manufacturing or fabrication process which results in the creation of a fabric covering over the monofilament. Since the braiding of the nomex threads is not an acceptable assembly of the threads within the meaning of subheading 9802.00.80, HTSUS, the bobbins of thread are not eligible for the partial duty exemption when the pintlepin is imported into the U.S. However, we believe that the simultaneous encasement of the monofilament by the braided nomex fibers constitutes an acceptable assembly operation, pursuant to 19 CFR 10.16(a), since it appears that it is primarily the gluing process which serves to secure the fibers to the monofilament. Since the monofilament is not being
advanced in value or improved in condition except by being assembled with the nomex fibers, an allowance may be made for its cost or value when the pintlepin is imported into the U.S.

We further find that an allowance may be made for the cost or value of the wire and tubing because, as explained in section I above, these two components are joined by an assembly operation. No allowance may be made for the dye and the glue because, as a powder and a liquid, they are not fabricated components of a type designed to be fitted together with other components.

With respect to the packing prior to shipping, 19 CFR 10.16(f) provides, in part, that an assembled article which otherwise qualifies for the exemption under subheading 9802.00.80, HTSUS, will not be disqualified by reason of having been packaged abroad.

HOLDING:

The pintlepin with the plain clear monofilament is eligible for the partial duty exemption under subheading 9802.00.80, HTSUS, when imported into the U.S., upon compliance with the documentary requirements of 19 CFR 10.24. Allowances may be made for the cost or value of the monofilament, wire, and tubing, all of U.S. origin, because the swaging operation by which they are joined is an acceptable assembly operation. The glue is not eligible for an allowance because it is not a fabricated component of a type designed to be fitted together with other components.

With respect to the pintlepin containing the monofilament encased with braided nomex fibers, the nomex threads are not eligible for the partial duty allowance under subheading 9802.00.80, HTSUS, because the braiding operation does not constitute an acceptable assembly operation or operation incidental thereto. No allowance is permitted for the cost or value of the dye or glue because they are not fabricated components of a type designed to be fitted together with other components. However, an allowance may be made for the cost or value of the wire, tubing, and monofilament, which are all subject to acceptable assembly operations.

Sincerely,

Jonn Durant, Director
Commercial Rulings Division

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