CLA-2-CO:R:C 555329 RA
Mr. John W. Cain
Cain Customs Brokers Inc.
P.O. Box 150
Hildalgo, Texas 78557
RE: Free entry under subheading 9801.00.10, HTSUS, of parts
bags containing U.S.-made components
Dear Sir:
This is in response to your letter of March 10, 1989,
regarding the eligibility for free entry as American goods
returned under the provisions of subheading 9801.00.10,
Harmonized Tariff Schedule of the United States (HTSUS), of
certain air conditioner parts of U.S. manufacture packaged in
plastic bags in Mexico.
FACTS:
The Whirlpool Corporation proposes to export U.S.-made parts
for its air conditioners to Mexico where they will be placed in
plastic bags, weighed, sealed, and labelled before return to the
U.S. for sale with the air conditioners and for installation by
the purchasers. The three parts bags involved will contain knobs
only; screws, nuts, and washers; or knobs; a screw, a washer, and
a plastic cup. Labels will be affixed to the bags with a
dispenser.
ISSUE:
Will packaged U.S.-made parts for air conditioners qualify
for free entry under the provisions of subheading 9801.00.10,
HTSUS?
LAW AND ANALYSIS:
Subheading 9801.00.10, HTSUS, provides for the free entry of
U.S. products exported and returned without having been advanced
in value or improved in condition by any process of manufacture
or other means while abroad. The courts have held that the
repackaging of U.S.-made articles will not preclude
classification as returned American products when there is no
change in the value or condition of the articles themselves
(apart from the container). U.S. v. John V. Carr & Son, Inc., 69
Cust. Ct. 78, C.D. 4377 (1972), aff'd 61 CCPA 52,
- 2 -
C.A.D. 1118 (1974), and Border Brokerage Company, Inc. v. U.S.,
65 Cust. Ct. 50, C.D. 4052 (1970), appeal dismissed 58 CCPA 165
(1970). In Headquarters Ruling Letter of November 18, 1988,
(731806), we held that U.S.-made containers of the kind normally
used for packaging may receive the free entry treatment for
American goods returned under subheading 9801.00.10, HTSUS, if
they meet the criteria for classification under that subheading.
Such treatment is not precluded by the process of filling them
with their contents.
HOLDING:
Air conditioner parts made in the U.S. and exported to
Mexico for packaging in plastic bags which are then weighed,
sealed, and labelled are not considered to have been advanced in
value or improved in condition and would be entitled to free
entry under subheading 9801.00.10, HTSUS, upon compliance with
the requirements of section 10.1, Customs Regulations (19 CFR
10.1). As the parts are of U.S. origin being returned, they may
be excepted from country of origin marking requirements, if their
immediate containers are properly marked, under section
134.32(m), Customs Regulations (19 CFR 134.32(m)).
Sincerely,
John Durant, Director
Commercial Rulings Division