CLA-2-CO:R:C 554906 RA
District Director of Customs
880 Front Street Rm. 5-S-9
San Diego, California 92188
RE: Classification of header assembly adjusted abroad
Dear Sir:
This ruling is in response to your memorandum of November
6, 1987, requesting internal advice as to whether the adjustment
of the header for a relay constitutes further processing (IA No.
78/87).
FACTS:
Header assemblies for relays made in the United States of
base metal are exported to Mexico for certain adjustments and
then returned for completion and stabilization bake. The foreign
adjustments consist of setting the space between stationary
contacts using a gauge to determine the predetermined amounts,
setting the spring force of moving contacts using a gram gauge,
and setting the return spring angle using an angled shim. When
the products are returned to the United States, they are cleaned,
baked, and inspected.
ISSUE:
Are the operations performed in Mexico and after return
sufficient to qualify as "further processing" under item 806.30,
Tariff Schedules of the United States (TSUS)(now subheading
9802.00.60, Harmonized Tariff Schedule of the United States
(HTSUS)).
LAW AND ANALYSIS:
In order to obtain tariff treatment under item 806.30, TSUS,
or subheading 9802.00.60, HTSUS, the base metal articles of
domestic origin must have been subjected to a process of further
manufacture in the foreign country and then the resultant product
must have been returned to the United States for further
processing. The term "further processing" refers to
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operations which affect the metal itself such as grinding,
cutting, drilling or forming. The operations applied to the
metal articles must change their shape or form or impart new and
different properties and characteristics to the metal that did
not previously exist. CSD 84-49, 18 Cust. Bull. 957 (1983).
Further processing implies a further process of manufacture of
the article. Intelex Systems, Inc. v. United States, 59 CCPA
138, C.A.D. 1055 (1972).
In the case under consideration, the only processing of the
header assemblies in Mexico consists of setting the space between
the stationary contacts, changing the spring force of the moving
contacts, and setting the return spring angle. None of these
operations affects the metal itself or imparts different
characteristics that the metal did not have before. Moreover,
the adjustments of the contacts and the spring do not constitute
a process of manufacture.
HOLDING:
The adjustments performed on the header assemblies in Mexico
are not a sufficient treatment of the products to comply with the
foreign further processing requirement under the statute.
Therefore, the tariff treatment provided for in item 806.30,
TSUS, or subheading 9802.00.60, HTSUS, must be denied for the
imported articles.
Sincerely,
John Durant, Director
Commercial Rulings Division