CLA-2-90:S:N:N3:119 813021
Mr. Jay Jamner
Jay Jamner Surgical Instruments, Inc.
9 Skyline Drive
Hawthorne, NY 10532
RE: The tariff classification and eligibility for duty-free
treatment under the GSP of certain surgical instruments
from Pakistan
Dear Mr. Jamner:
In your letter dated July 25, 1995 you requested a ruling on
the tariff
classification and eligibility for duty-free treatment under the
Generalized System of Preferences (GSP) of certain surgical instruments.
The articles to be imported are finished surgical instruments
manufactured in Pakistan from raw forging blades of German origin. You
have submitted seven samples to illustrate the various stages of the
manufacturing process that takes place in Pakistan from raw forgings to a
finished Jarit Vanguard Crile forceps. Based on your letter, the
manufacturing process can be described briefly as follows.
Serrations are milled into the jaw and ratchet bar of each blade. The
male and female sections of the box lock are milled. The two blades are
joined by inserting the male section of the box lock into the female.
There follow a number of steps which include filing, grinding, heat
treating, riveting, polishing, electro-polishing, and "passivation".
Based on the above information, the manufacturing process in Pakistan
constitutes a substantial transformation and we would consider the forceps
to be a product of Pakistan. However since the forgings do not undergo a
double substantial transformation (i.e. no intermediate article of commerce
is created), for the purpose of the GSP their value cannot be included in
the 35 percent value-content requirement. Your letter indicates that the
direct and indirect manufacturing costs in Pakistan would be well over 35
percent of the appraised value of the imported surgical instruments.
The applicable subheading for the surgical forceps will be 9018.90.8000,
Harmonized Tariff Schedule of the United States (HTS), which provides for
instruments and appliances used in medical, surgical, dental or veterinary
sciences... parts and accessories thereof... other. The duty rate will be
6.3 percent.
Articles classifiable under subheading 9018.90.8000, HTS, which are
products of Pakistan are entitled to duty free treatment under the
Generalized System of Preferences (GSP) upon compliance with all applicable
regulations including the 35 percent value-content requirement.
This ruling is being issued under the provisions of Section 177 of the
Customs Regulations (19 C.F.R. 177).
A copy of this ruling letter should be attached to the entry documents
filed at the time this merchandise is imported. If the documents have been
filed without a copy, this ruling should be brought to the attention of the
Customs officer handling the transaction.
Sincerely,
Jean F. Maguire
Area Director
New York Seaport