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HQ 557112





April 5, 1993

CLA-2 CO:R:C:S 557112 WAW

CATEGORY: CLASSIFICATION

TARIFF NO.: 9802.00.80

Gail T. Cumins, Esq.
Sharretts, Paley, Carter & Blauvelt, P.C. 67 Broad Street
New York, N.Y. 10004

RE: Applicability of the partial duty exemption under subheading 9802.00.80, HTSUS, to shirt cuffs and shirt fronts imported from Mexico; sewing; L'Eggs ; C.S.D. 90-82(10); trimming; cut to length

Dear Ms. Cumins:

This is in response to your letter dated December 28, 1992, on behalf of Warnaco, concerning the applicability of the partial duty exemption under subheading 9802.00.80, Harmonized Tariff Schedule of the United States (HTSUS), to shirt cuffs and shirt fronts imported as part of completed shirts from Mexico. A sample of the merchandise was submitted for our review.

FACTS:

The shirt cuffs and fronts will be assembled in Mexico from U.S.-origin fabric. In the production of the cuffs, U.S.-origin rolls of cuff lining and cuff fabric ply which is cut to shape are shipped to Mexico. In Mexico, the cuff ply is attached to the cuff lining by means of a sewing operation, in order to produce cuff segments on running length. The cuff segments on running length will then be separated via a cutting to length operation. A second cuff fabric ply is then attached to each segment. Excess fabric is trimmed off and the segment is sewn on three sides in order to produce a finished cuff.

In the production of the shirt front, U.S.-origin rolls of upper lining and shirt fronts which are cut to shape are shipped to Mexico. In Mexico, the shirt fronts will be attached to the upper lining on running length, in order to produce shirt front segments. The shirt front segments on running length are then separated via a cutting operation.

The assembled cuffs and shirt fronts are then attached by sewing to the remaining shirt components. The completed shirts will then be returned to the U.S.

ISSUE:

Whether the shirt fronts and cuffs will be entitled to the partial duty exemption available under subheading 9802.00.80, HTSUS, when returned to the U.S.

LAW AND ANALYSIS:

HTSUS subheading 9802.00.80 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 HTSUS subheading 9802.00.80 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 value of the imported assembled article, less the cost or value of such U.S. components, upon 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(a)), states in part that:

[t]he 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 incidental to the assembly either before, during, or after their assembly with other components.

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.

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. 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 HTSUS subheading 9802.00.80 to that component. See 19 CFR 10.16(c).

In HRL 554812 dated February 1, 1988, belt loop fabric material and a narrow liner stiffener material was exported in long lengths into Mexico- In Mexico, the belt loop fabric was sewn end-to-end to form a continuous chain of fabric. The material was then trimmed of 1/16 of an inch from the edges and the belt loop fabric was either chemically fused or sewn to the inner lining material, with the fabric material folded over the inner lining. The continuous strip of lined belt loop material was cut to belt loop length and the loops were tacked along the waistbands of the trousers. Customs held that the belt loop fabric and inner lining materials of U.S.-origin that were joined together in an assembly either by fusing or sewing constituted an acceptable assembly operation under item 807, Tariff Schedules of the United States (TSUS) (the precursor to subheading 9802.00.80, HTSUS).

We are satisfied from the documentation and the samples submitted that the U.S. components meet the requirements of subheading 9802.00.80, HTSUS, and therefore, are entitled to the partial duty exemption available under this tariff provision. The foreign operations that entail sewing fabric onto itself using any type of stitch, attaching two or more components together by sewing and tacking metal snaps and rings to fabric by sewing are considered acceptable assembly operations. See 19 CFR 10.16(a); L'Eggs Products v. United States, Slip Op. 89-5, 13 CIT 40, 704 F. Supp. 1127 (CIT 1989), which held that sewing together the end of a pantyhose tube is considered an acceptable assembly operation as the thread serves as a joining agent by joining the tube to itself; and HRL 555525 dated June 5, 1990. We are of the opinion that sewing the cuff ply to the cuff lining to produce cuff segments, and sewing rolls of upper lining and shirt fronts to each other to produce shirt front segments is similar to the foreign assembly operations which took place in HRL 554812, and therefore, are considered acceptable assembly operations pursuant to 19 CFR 10.16(a).

In C.S.D. 90-82(10), 24 Cust. Bull. 524 (1990), HRL 555565 dated May 14, 1990, Customs determined that "cutting proper-width towels and beaded weights to length are considered acceptable operations incidental to the assembly process pursuant to 19 CFR 10.16(b)(6), which states that cutting to length is an acceptable incidental operation. However, 19 CFR 10.16(c)(2) provides that cutting garment parts according to pattern from exported material is not considered an operation incidental to assembly. Therefore, since the cuff segments and shirt front segments in the instant case are merely being cut to length in Mexico, pursuant to 19 CFR 10.16(b)(6), this constitutes an operation incidental to assembly within the ambit of subheading 9802.00.80, HTSUS. In addition, trimming excess material off the cuffs is considered an operation incidental to the assembly process pursuant to 19 CFR 10.16(b)(4), which states that trimming or cutting off small amounts of excess materials is an acceptable incidental operation.

HOLDING:

Based on the information submitted and the samples, it is our opinion that the foreign operations performed on the U.S.- origin materials to produce the completed shirts are considered proper assembly operations or operations incidental to the assembly process. Therefore, the imported shirts may be entered under subheading 9802.00.80, HTSUS, with allowances in duty for the cost or value of the U.S.-origin components comprising the shirt cuffs and fronts, upon compliance with the documentary requirements of 19 CFR 10.24.

Sincerely,

John Durant, Director
Commercial Rulings Division


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