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NY C89772

CLA-2-62:RR:NC:3:353 C89772

CATEGORY: CLASSIFICATION

TARIFF NO.: 6215.20.0020, 9802.00.8065, 9801.00.1096

Ms. Carol A. Krupskas

KAT Import Brokers, Inc.

Airport Industrial Office Park

Bldg. B4a

145th Avenue at Hook Creek Blvd.

Valley Stream, NY 11581

RE: The tariff classification of ties from the Dominican Republic.

Dear Ms. Krupskas:

In your letter dated July 10, 1998, on behalf of Flying Ties, Inc., you requested a classification ruling. You also requested a ruling as to the applicability of headings 9801 and/or 9802 to the merchandise. Samples of the items in condition as shipped to the Dominican Republic and in their finished form were provided.

The first item, a "Redi-Tie" is a ready made tie of 100% polyester fabric and consists of a tie shell, tipping, inner lining, metal clip, loop label and content label. Also supplied are paper bands that keep the tie ends together and plastic hooks to display the tie for retail sale.

The second item, a "Four-in-Hand Tie" is a tie of 100% polyester fabric and consists of a tie shell, tipping, inner lining, loop label and content label. Also supplied are paper bands that keep the tie ends together and plastic hooks to display the tie for retail sale.

The "Redi-Tie" is produced from fabric of United States origin that is cut to shape in the Dominican Republic. The "Four-in-Hand Tie" is produced from fabric of Korean origin that is cut to shape in the Dominican Republic. For both ties the tipping is produced from fabric of United States origin that is cut to shape in the Dominican Republic. The inner lining is made of U.S. fabric that is cut to shape in the United States. The loop label and content label are of U.S. origin. The tie is then assembled in the Dominican Republic and U.S. origin plastic hooks and paper bands are added. In addition, for the "Redi-Tie" a knot is formed and a U.S. origin metal clip is attached.

The applicable subheading for the "Redi-Tie" and "Four-in-Hand Tie" will be 6215.20.0000, Harmonized Tariff Schedule of the United States (HTS), which provides for "Ties, bow ties and cravats: Of man-made fibers." The duty rate will be 25.8 cents per kilogram plus 13.2% ad valorem.

The "Redi-Tie" and "Four-in-Hand Tie" fall within textile category designation 659. Based upon international textile trade agreements products of the Dominican Republic are subject to the requirement of a visa.

The designated textile and apparel categories may be subdivided into parts. If so, visa and quota requirements applicable to the subject merchandise may be affected. Part categories are the result of international bilateral agreements which are subject to frequent renegotiations and changes. To obtain the most current information available, we suggest that you check, close to the time of shipment, the Status Report on Current Import Quotas (Restraint Levels), an internal issuance of the U.S. Customs Service, which is available for inspection at your local Customs office.

You also requested a ruling as the applicability of headings 9801 and 9802 to this merchandise.

Subheading 9802.00.80 provides for partial duty exemption of:

Articles, except goods of heading 9802.00.90,
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 HTSUSA 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 a duty upon the full value of the imported assembled article, less the cost or value of the U.S. components assembled therein, provided there has been compliance with the documentation requirements of section 10.24, Customs Regulation (19 C.F.R. §10.24).

Fabricated components subject to the exemption are provided for at section 10.14(a), Customs Regulations (19 C.F.R. §10.14(a)), which provides, 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 Regulation (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. Creating knots is considered an acceptable assembly operation.

The U.S. origin fabrics used to make the "Redi-Tie" shell and the tipping for both ties are cut in the Dominican Republic. Therefore, they are not exported in condition ready for assembly without further fabrication and are not eligible for treatment under 9802.00.80.

The loop label, content label, metal clip (for the "Redi-

Tie") and the inner lining made of U.S. fabric cut in the United States, were exported in condition ready for assembly, have not lost their physical identity and have not been advanced in value or improved in condition. All are eligible for treatment under 9802.00.8065, HTSUSA.

Subheading 9801.00.10 provides for the duty-free entry of:

Products of the United States when returned after
having been exported, without having been
advanced in value or improved in condition by any
process of manufacture or other means while
abroad.

The U. S. origin paper bands that keep the tie ends together and plastic hooks to display the tie for retail sale have not been assembled with the tie, but are considered mere packaging. These items which are not advanced in value or improved in condition while abroad are separately entitled to duty-free treatment under 9801.00.1096, HTSUSA provided there has been compliance with the documentary requirements of section 10.1, Customs Regulations (19 C.F.R. §10.1).

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 Kenneth Reidlinger at 212-466-5881.

Sincerely,


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See also:

• Tariff No.: 6215.20.00 - Ties, bow ties and cravats, not knitted or crocheted, of man-made fibers
• Tariff No.: 9801.00.10 - U.S. goods returned without having been advanced in value or improved in condition while abroad
• Tariff No.: 9802.00.80 - U.S. articles assembled abroad, which have not lost their physical identity or have not advanced in value or improved in condition abroad
• Tariff No.: 9802.00.90 - Textile and apparel goods, assembled in Mexico in which all fabric components were wholly formed and cut in the United States, etc.