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NY C86956




May 5, 1998

CLA-2-33:RR:NC:2:240 C86956

CATEGORY: CLASSIFICATION

TARIFF NO.: 3304.10.0000; 3304.20.0000; 9802.00.8065

Mr. Robert Persily
Freight Brokers International Inc.
1200 Brunswick Ave.
P.O. Box 960219
Inwood, NY 11098-0219

RE: The tariff classification of unfinished makeup articles assembled in the Dominican Republic from US and Italian origin components

Dear Mr. Persily:

In your letter dated April 16, 1998 you requested a ruling on behalf of your client Revlon Consumer Corporation.

Your client will export to the Dominican Republic for assembly: lip makeup rod applicator components, mascara brush components, lip makeup pencils with protective overcaps, eye makeup pencils with protective overcaps, and clear plastic overcaps. The makeup pencils with protective overcap are manufactured in Italy. The lip makeup rod applicator components, mascara brush components and clear plastic overcaps are of US origin. The importer will supply twenty mechanically assisted workstations valued at $1,000 each.

The lip makeup rod applicator component (or mascara brush makeup component) and pencil will be placed onto the workstation, which will "snap" the two components together. The clear plastic overcap will be placed over the pencil. The protective overcaps will be returned to Italy. The articles assembled in the Dominican Republic are unfinished makeup articles.

The applicable subheading for the unfinished lip makeup article will be 3304.10.0000, Harmonized Tariff Schedule of the United States (HTS), which provides for Lip makeup preparations. The rate of duty will be 1 percent ad valorem. The applicable subheading for the unfinished eye makeup article will be 3304.20.0000, Harmonized Tariff Schedule of the United States (HTS), which provides for Eye makeup preparations. The rate of duty will be 1 percent ad valorem.

The workstations supplied by the importer are assists. The cost of is an addition to the price actually paid or payable for imported merchandise within the meaning of section 402(b)(1)(C) of the TA.

Subheading 9802.00.8065, HTS, provides for 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. Section 10.14(a), Customs Regulations [19 C.F.R. ?10.14(a)], states that the components must be in a 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 C.F.R. ?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 are not considered further fabrication operations if they are of a minor nature.

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 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 C.F.R. ?10.24). Fitting the pencil into the rod applicator component (or mascara brush component), as well as placing the clear overcap over the pencil, is an acceptable assembly operation for purposes of reduced duty treatment in heading 9802. The unfinished makeup article is classified under subheading 9802.00.80, HTS, with allowances in duty for the cost or value of the U.S. produced rod applicator component, mascara brush component and clear plastic overcap, upon compliance with the documentary requirements of 19 C.F.R. ?10.24.

Pursuant to General Note 3(c)(V)(A), HTSUS, the Dominican Republic has been designated as a beneficiary country (BC) for of the Caribbean Basin Economic Recovery Act (CBERA). A product comprised of materials imported into the Dominican Republic, is considered to be a "product of" the Dominican Republic if those materials are substantially transformed into a new or different article of commerce. A substantial transformation occurs "when an article emerges from a manufacturing process with a new name, character, or use which differs from that of the original material subjected to the process." An article will not be considered to be a product of the Dominican republic if it has merely undergone simple combining or packaging operations. The assembly operation performed in the Dominican Republic will not qualify for duty-free treatment under the CBERA. The components are not substantially transformed into a new and different article of commerce.

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

A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Stephanie Joseph at 212-466-5768.

Sincerely,

Robert B. Swierupski
Director,

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