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NY 882827



February 26, 1993

CLA-2-95:S:N:N8:224 882827

CATEGORY: CLASSIFICATION

TARIFF NO.: 9507.90.8000

Garry Poelman
Sno-Line Products
P.O. Box 629
Atikokan, Ont. P0T 1C0

RE: The tariff classification of Future Fisher "Ice-Fishin-Riggin" products from Canada.

Dear Mr. Poelman:

In your letter dated January 29, 1993, you requested a tariff classification ruling on merchandise that consists of two models of ice fishing rigs, the Stryker and the Hit Kit, that are designed to stand above the ice hole in a tripod arrangement.

The applicable subheading for these ice fishing rigs will be 9507.90.8000, Harmonized Tariff Schedule of the United States (HTS), which provides for other line fishing tackle. The rate of duty will be 9 percent ad valorem.

You have indicated that the imported ice fishing rigs are "assembled" in Canada of United States components and suggest that these circumstances may render the merchandise eligible for a possible duty allowance.

Your letter does not make clear in what physical condition the U.S. components are exported for eventual assembly in Canada. Nor does it provide detailed documentary information relating to the nature of these "assembly" operations performed in Canada on the U.S. components.

Duty-free treatment under subheading 9802.00.80, HTS

For your information, subheading 9802.00.80, HTS, 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, lubrication, and painting.

All three requirements of subheading 9802.00.80, HTS, 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).

As envisioned under subheading 9802.00.80, HTS, the assembly operations 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.

It is recommended that you contact Customs officials at the appropriate port of entry to obtain an advisory opinion as to whether subheading 9802.00.80, HTS, would apply to the proposed assembly operations. You should be prepared to furnish the necessary data establishing the exact nature of the assembly operations conducted in Canada.

Duty-free treatment under subheading 9801.00.10, HTS

Subheading 9801.00.10, HTS, provides for the free entry of products of the U.S. that are 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.

If the circumstances of your product transaction are such that certain components of U.S. origin are exported to Canada, simply repacked with or without foreign components, and returned to the U.S. as a completed ice fishing rig kit, the components of U.S. origin may be entitled to duty-free entry under subheading 9801.00.10, HTS. The mere repackaging of the U.S. manufactured components with the foreign articles composing the ice fishing rig neither advances the U.S. components in value nor improves them in condition. Therefore, a classification allowance in duty may be made under subheading 9801.00.10, HTS, for the cost or value of the U.S. components which are merely packaged abroad in the ice fishing rig kit and returned. This presumes that the documentation requirements of 19 CFR 10.1 are met and that the district director of Customs at the port of entry is satisfied that the items are, in fact, of U.S origin.

This ruling is being issued under the provisions of Section 177 of the Customs Regulations (19 C.F.R. 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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