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NY 802235





October 20, 1994

CLA-2-95:S:N:N8:225 802235

CATEGORY: CLASSIFICATION

TARIFF NO.: 6307.90.9989; 9502.91.0000

Mr. Jack Alsup
Alsup & Alsup, Inc.
P.O. Box 1251
Del Rio, Texas 78841

RE: The tariff classification of a piece of textile material and doll hat assembled in Mexico

Dear Mr. Alsup:

In your letter dated September 14, 1994, received in this office on September 20, 1994, you requested a tariff classifi- cation ruling on behalf of your client Manufacturing Trends, Inc. Samples were provided which represent the goods at each stage of process. According to your letter, the prospective importer will export two pieces of pre-cut fabric, cotton balls and thread to Mexico. In Mexico the fabric components will be folded and sewn, using the thread provided, and sections of the cotton balls will be glued to one of the textile pieces. The products, in their imported condition, will be a folded rectangular piece of fabric and a doll's Santa hat. Upon importation, the fabric piece will be partially filled and tied to form the limbs of a doll figure.

The first component is a folded rectangular piece of fabric made of 100% cotton material. The piece, when imported, will measure approximately 10 inches in length and 1 1/2 inches in width. It will be sewn at either end and along an inner seam.

The second component is a cone shaped doll's Santa hat made of 100% polyester material. A small ball of cotton is glued to the top of the hat which measures about 2 1/2 inches in height.

The applicable tariff provision for the rectangular piece of cotton fabric will be 6307.90.9989, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for other made up articles, including dress patterns: other: other: other, other: other. The general rate of duty will be 7 percent ad valorem.

The applicable tariff provision for the doll's Santa hat will be 9502.91.0000, Harmonized Tariff Schedule of the United

States Annotated (HTSUSA), which provides for dolls representing only human beings and parts and accessories thereof: garments and accessories thereof, footwear and headgear. The general rate of duty will be 8 percent ad valorem.

Subheading 9802.00.80, HTSUS, provides a partial duty exemption for:

"articles 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 919 CFR 10.24.

Section 10.14(a), Customs Regulations (19 CFR 10.14(a)), states in part that:

"the 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 whether performed before, during, or after assembly, do not constitute further fabrication, and shall not preclude the application of the exemption. An example of an operation which is considered incidental to the assembly process is the cutting to length of wire, thread, tape, foil, and similar products exported in continuous length. See, section 10.16(b)(6), Customs Regulations (19 CFR 10.16(b)(6)).

In the instant case, folding and sewing the rectangular fabric piece and folding and sewing the cone shaped material (including gluing of the cotton ball to the tip of the hat), constitutes an acceptable assembly process pursuant to the above-cited regulation. See, 19 CFR 10.16(a), and L'Eggs Products v. United States, Slip Op. 89-5, 13 CIT 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.

Based upon the information presented, it is the opinion of this office that the operations performed abroad to create the rectangular piece of fabric and the doll's Santa hat are proper assembly operations or operations incidental to the assembly process. Therefore, the above described items may be entered under subheading 9802.00.80, HTSUS, with allowances in duty for the cost or value of the U.S. components incorporated therein, upon compliance with the documentary requirements of 19 CFR 10.24.

This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 CFR 177).

A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise is imported. If the documents have been filed without a copy, this ruling should be brought to the attention of the Customs officer handling the transaction.

Sincerely,

Jean F. Maguire
Area Director

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