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HQ 557874




June 14, 1994

CLA-2 CO:R:C:S 557874 WAS

CATEGORY: CLASSIFICATION

TARIFF NO.: 9802.00.80

Ms. Nancy Wolf
Wells Lamont
6640 West Touhy Avenue
Niles, IL 60714-4587

RE: Applicability of the partial duty exemption under subheading 9802.00.80, HTSUS, to gloves from Jamaica

Dear Ms. Wolf:

This is in reference to your letters dated January 26, and March 3, 1994, addressed to Jean F. Maguire, New York Seaport, concerning the applicability of the partial duty exemption under subheading 9802.00.80, Harmonized Tariff Schedule of the United States (HTSUS), to gloves from Jamaica. A sample of the merchandise was submitted for our review.

FACTS:

You state that a either a cotton knit glove or a raggwool glove, synthetic liner and leather palm patch will be shipped from the U.S. to Jamaica for assembly by sewing. According to your submission, the raggwool knit glove will be made of 85% wool and 15% nylon. The synthetic liner will consist of 100% synthetic material (polyolifin) and the leather portion will consist of 100% cowhide leather. You have also submitted a detailed cost breakdown which is an estimate of the cost of the assembly operation in Jamaica.

You also state that you are considering shipping a cotton glove component into Jamaica from Sri Lanka or Indonesia, instead of from the U.S., where the cotton glove component will be sewn together with other components to produce the finished glove.

ISSUE:

Whether the gloves qualify for the partial duty exemption under subheading 9802.00.80, HTSUS, when returned to 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 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 10.14(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, lamination, 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 subheading 9802.00.80, HTSUS, to that component. See 19 CFR 10.14(a).

We are satisfied from the information provided that the U.S. components meet the requirements of subheading 9802.00.80, HTSUS, and therefore, are entitled to the duty allowance available under this tariff provision. There is no operation performed on the exported knit wool glove, synthetic liner or leather palm patch to complete them in preparation for the assembly operation. Accordingly, we find that the glove components are finished components as exported and are in condition ready for assembly when sent to Jamaica.

In addition, the foreign operations that entail attaching two or more components together by sewing is considered an acceptable assembly operation. Therefore, sewing the cotton knit or raggwool glove, synthetic liner and leather palm patch together in Jamaica to produce the final article is an acceptable assembly operation within the meaning of subheading 9802.00.80, HTSUS.

In regard to the possible use of gloves from either Sri Lanka or Indonesia, subheading 9802.00.80, HTSUS, only applies to U.S. fabricated components. Therefore, as the glove component would not be a "product of" the U.S., no allowance in duty may be made for the cost or value of the foreign glove component. However, allowances could be made under this tariff provision for the cost or value of the synthetic liner and leather palm patch which are sewn to the foreign glove, assuming they are of U.S.-origin.

HOLDING:

Based on the information and sample submitted, it is our opinion that the foreign operations performed on the U.S.-origin glove components are considered proper assembly operations. Therefore, assuming that these components are in fact of U.S.-origin, the imported completed gloves may be entered under subheading 9802.00.80, HTSUS, with allowances in duty for the cost or value of the U.S.-origin materials incorporated therein, upon compliance with the documentation requirements of 19 CFR 10.24.

If a foreign glove is joined with the U.S.-origin liner and leather patch, duty allowances may be made under subheading 9802.00.80, HTSUS, for the cost or value of only the liner and patch, upon compliance with the documentation requirements of 19 CFR 10.24.

Sincerely,

John Durant, Director

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