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HQ 557771


May 26, 1994

CLA-2 CO:R:C:S 557771 BLS

CATEGORY: CLASSIFICATION

TARIFF NO.: 9801.00.10

Ms. Judy Campbell
W.Y. Moberly, Inc.
P.O. Box 164
Sweetgrass, Montana 59484

RE: Applicability of 9801.00.10, HTSUS, to golf putters

Dear Ms. Campbell:

This is in reference to your letter dated December 15, 1993, requesting a ruling regarding the tariff treatment of certain golf putters under the Harmonized Tariff Schedules of the United States (HTSUS). You ask whether the imported articles are eligible for the partial duty exemption under HTSUS subheading 9802.00.50. We are treating your request as an inquiry regarding the applicability of any duty-free or partially duty-free provision to the imported articles. In this regard, if the articles are entitled to duty- free treatment under subheading 9801.00.10, HTSUS, then no further classification of the items are required upon entry. You also inquire as to the country of origin for marking purposes.

FACTS:

The golf putters, of U.S. origin, are exported to Canada, where the head is engraved by an epoxy process with the manufacturer's name or logo. No other operations are performed in Canada. The putters are then returned to the U.S.

ISSUES:

1) Whether the golf putters are eligible for a duty-free or partially duty-free provision under the HTSUS, upon return from Canada.

2) Whether the returned articles are subject to country of origin marking requirements.

LAW AND ANALYSIS:

Subheading 9801.0.10, HTSUS, provides for the free entry of products of the U.S. that have been exported and returned without having been advanced in value or improved in condition by any process of manufacture or other means while abroad, provided the
documentary requirements of section 10.1, Customs Regulations (19 CFR 10.1), are met. Some change in the condition of the product while it is abroad is permissible. However, operations which either advance the value or improve the condition of the product while it is abroad render it ineligible for duty-free entry upon return to the U.S. Border Brokerage Company, inc. v. United States, 314 F. Supp. 788 (1970), appeal dismissed, 58 CCPA 165 (1970).

We have held that foreign stamping or printing of a product to identify the manufacturer and describe the product does not advance its value or improve its condition so as to preclude entry under subheading 9801.00.10, HTSUS. See Headquarters Ruling Letter (HRL) 071449 dated October 17, 1983 (surgical drapes stamped in ink with the name of the company, size and model number, and packaged in plastic bags were not precluded from item 800.00, Tariff Schedules of the United States (TSUS) (now subheading 9801.00.10, HTSUS), treatment); see also HRL 555183 dated February 15, 1989 (printing dental floss dispensers with the company name and description of the floss type, flavor and length, and bulk- packaged in cardboard boxes did not preclude subheading 9801.00.10, HTSUS, treatment for the dispensers), and HRL 557701 dated April 2, 1993, silk screening of plastic bottles with company name, identifying data, and bottle capacity, held not to preclude subheading 9801.00.10, treatment.

We find that engraving the head of the golf putter with the manufacturer's name or logo is analagous to the processes in the cited cases which provide information regarding the manufacturer and the product. Accordingly, since the engraving process in the instant case does not advance the value or improve the condition of the golf putters, upon return to the U.S. they may be entered free of duty under subheading 9801.00.10, HTSUS, upon compliance with the documentary requirements of 19 CFR 10.1. Since the articles will be considered products of the U.S. which have been exported and returned, they are exempted from country of origin marking requirements. (See 19 CFR 134.32(m).)

HOLDING:

1) Engraving the head of the golf putter with the manufacturer's name or logo does not advance the value or improve the condition of the item while abroad. Therefore, if of U.S. origin, the golf putters may be entered free of duty under subheading 9801.00.10, HTSUS, upon return to the U.S., upon compliance with the documentary requirements of 19 CFR 10.1.

2) Upon return to the U.S., the golf putters will be exempt from country of origin marking requirements.

Sincerely,

John Durant, Director
Commercial Rulings Division

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