CLA-2 CO:R:C:S 555818 KCC
Mr. J.D. Nicoll
Hilden Halifax Inc.
Halifax Damask Mill
P.O. Box 1098
Railroad Avenue
South Boston, Virginia 24592
RE: U.S. manufactured yarn woven into table linens and yard
goods in the United Kingdom.Assembly; 19 CFR 10.16(a); 19
CFR 12.130(e)(1)(iii); C.S.D. 90-38 (555116); 553593
Dear Mr. Nicoll:
This is in response to your letter dated December 21, 1990,
requesting a ruling concerning the applicability of subheading
9802.00.80, Harmonized Tariff Schedule of the United States
(HTSUS), to U.S. manufactured yarn returned to the U.S. in the
form of table linens and yard goods.
FACTS:
Hilden Halifax intends to ship U.S. manufactured yarn to the
United Kingdom. In the United Kingdom, the yarn will be woven
into table linens or yard goods which will be returned to the
U.S. for processing into finished table linens.
ISSUE:
Whether U.S. manufactured yarn will be eligible for the
duty exemption available under subheading 9802.00.80, HTSUS, when
returned to the U.S. in the form of table linens and yard goods.
LAW AND ANALYSIS:
All articles imported into the U.S. are subject to duty
unless specifically exempted therefrom under the HTSUS.
Subheading 9802.00.80, HTSUS, provides a partial duty exemption
for:
[a]rticles 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 subheading 9802.00.80, HTSUS, 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).
Section 10.16(a), Customs Regulations (19 CFR 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.
We have consistently held that the weaving of fabrics from
spun yarn constitutes a manufacturing process rather than an
assembly operation. See, Headquarters Ruling Letter (HRL) 553593
dated May 16, 1985, C.S.D. 90-38, 24 Cust.Bull. (1990) (HRL
555116 dated October 16, 1989), and example 3 set forth in 19 CFR
10.16(a). Moreover, section 12.130(e)(1)(iii), Customs
Regulations (19 CFR 12.130(e)(1)(iii)), provides that a textile
article or material is a product of the country where the textile
article or material has undergone a weaving, knitting or other
fabric forming operation.
Based on our prior rulings and regulations, we find that
the U.S. manufactured yarn woven into table linen and yard goods
in the United Kingdom is not eligible for the duty exemption
available under subheading 9802.00.80, HTSUS.
HOLDING:
On the basis of the information submitted, we are of the
opinion that the U.S. manufactured yarn woven into table linen
and yard goods in the United Kingdom is not eligible for the duty
exemption available under subheading 9802.00.80, HTSUS.
Accordingly, the table linens and yard goods returned to the U.S.
will be dutiable on their full value under the appropriate tariff
provision.
Sincerely,
John Durant, Director
Commercial Rulings Division