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HQ 555765


November 8, 1990

CLA-2 CO:R:C:V 555765 KCC

CATEGORY: CLASSIFICATION

TARIFF NO.: 9802.00.80

Mr. Richard G. Seley
Rudolph Miles & Sons, Inc.
P.O. Box 144
El Paso, Texas 79942

RE: Applicability of subheading 9802.00.80, HTSUS, to pillow block assemblies created by forming, fitting, screwing and gluing or riveting.Assembly; 19 CFR 10.16(a)

Dear Mr. Seley:

This is in response to your letter dated June 22, 1990, on behalf of Emerson Power Transmission, Corp., requesting a ruling on the applicability of subheading 9802.00.80, Harmonized Tariff Schedule of the United States (HTSUS), to pillow block assemblies imported into the U.S. Your request for a ruling concerning the classification, country of origin, and implications of the antidumping duty order on antifriction bearings from Japan regarding the pillow block assembly was answered in Headquarters Ruling Letter 087462 dated October 22, 1990.

FACTS:

Emerson will ship Japanese origin ball bearings (consisting of antifriction balls separated by plastic elements enclosed in an inner and outer race), U.S. origin grease nipples called Zerk fittings, and U.S. origin pressure sensitive name plates to Mexico. In Mexico, the block housing is cast and machined to accommodate the bearing's outer race, and a hole is drilled and tapped for the Zerk. After completion of the block housing, the ball bearing is fitted, the Zerk is screwed on, and the name plate is affixed (glued or riveted) to the block housing.

Upon completion of the pillow block assembly, it will be imported into the U.S.

ISSUE:

Whether the pillow block assembly will be entitled to 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, lubrication, 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 cost or 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 CFR 10.24).

Section 10.16(a), Customs Regulations (19 CFR 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.

Screwing the Zerk into the block housing and affixing (by gluing or riveting) the name plate to the block housing are considered acceptable assembly operations. See, 19 CFR 10.16(a). Therefore, as the U.S. components (Zerk and name plate) used in the assembly process will be exported in condition ready for assembly without further fabrication, will not lose their physical identities in the assembled article, and will not be advanced in value or improved in condition except by assembly operations, the returned pillow block assembly will be eligible for the partial duty exemption under subheading 9802.00.80, HTSUS.

HOLDING:

Based on the information submitted, we are of the opinion that the screwing and affixing (gluing or riveting) are acceptable assembly operations. Therefore, allowances may be made under subheading 9802.00.80, HTSUS, for the cost or value of the U.S. origin Zerk and name plate, which are properly assembled into the pillow block assembly, upon compliance with the documentary requirements of 19 CFR 10.24.

Sincerely,

John Durant, Director
Commercial Rulings Division

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