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HQ 555818

March 15, 1991

CLA-2 CO:R:C:S 555818 KCC

CATEGORY: CLASSIFICATION

TARIFF NO.: 9802.00.80

Mr. J.D. Nicoll
Hilden Halifax Inc.
Halifax Damask Mill
P.O. Box 1098
Railroad Avenue
South Boston, Virginia 24592

RE: U.S. manufactured yarn woven into table linens and yard goods in the United Kingdom.Assembly; 19 CFR 10.16(a); 19 CFR 12.130(e)(1)(iii); C.S.D. 90-38 (555116); 553593

Dear Mr. Nicoll:

This is in response to your letter dated December 21, 1990, requesting a ruling concerning the applicability of subheading 9802.00.80, Harmonized Tariff Schedule of the United States (HTSUS), to U.S. manufactured yarn returned to the U.S. in the form of table linens and yard goods.

FACTS:

Hilden Halifax intends to ship U.S. manufactured yarn to the United Kingdom. In the United Kingdom, the yarn will be woven into table linens or yard goods which will be returned to the U.S. for processing into finished table linens.

ISSUE:

Whether U.S. manufactured yarn will be eligible for the duty exemption available under subheading 9802.00.80, HTSUS, when returned to the U.S. in the form of table linens and yard goods.

LAW AND ANALYSIS:

All articles imported into the U.S. are subject to duty unless specifically exempted therefrom under the HTSUS. 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 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.

We have consistently held that the weaving of fabrics from spun yarn constitutes a manufacturing process rather than an assembly operation. See, Headquarters Ruling Letter (HRL) 553593 dated May 16, 1985, C.S.D. 90-38, 24 Cust.Bull. (1990) (HRL 555116 dated October 16, 1989), and example 3 set forth in 19 CFR 10.16(a). Moreover, section 12.130(e)(1)(iii), Customs Regulations (19 CFR 12.130(e)(1)(iii)), provides that a textile article or material is a product of the country where the textile article or material has undergone a weaving, knitting or other fabric forming operation.

Based on our prior rulings and regulations, we find that the U.S. manufactured yarn woven into table linen and yard goods in the United Kingdom is not eligible for the duty exemption available under subheading 9802.00.80, HTSUS.

HOLDING:

On the basis of the information submitted, we are of the opinion that the U.S. manufactured yarn woven into table linen and yard goods in the United Kingdom is not eligible for the duty exemption available under subheading 9802.00.80, HTSUS. Accordingly, the table linens and yard goods returned to the U.S. will be dutiable on their full value under the appropriate tariff provision.

Sincerely,

John Durant, Director
Commercial Rulings Division

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