CLA-2 CO:R:C:V 555554 GRV
TARIFF NO: 9802.00.80; 5609.00.30
Ms. Peggy Hendrickx
Continental Export Trading Corporation
P.O. Box 8544
Red Bank, New Jersey 07701
RE: Applicability of partial duty exemption under HTSUS subhead-
ing 9802.00.80 to tipped articles of cordage created by
joining together cut-to-length braided cord of man-made
fibers, and cellulose acetate, by a heat fusing operation.
The returned single lengths are classifiable under HTSUS
subheading 5609.00.30.Tipping operation;assembly;incidental
operations.
Dear Ms. Hendrickx:
This is in response to your letter of December 26, 1989,
requesting a ruling on the applicability of subheading
9802.00.80, Harmonized Tariff Schedule of the United States
(HTSUS), to acetate-tipped cordage articles imported from Mexico
for use as shopping bag handles in the U.S. A sample of the
article to be imported was submitted for examination. You also
inquire as to the proper tariff classification of the
merchandise.
FACTS:
You state that braided cord, composed of polypropylene
braided over a paper core, and strips of cellulose acetate, both
products of the U.S., will be exported to Mexico in continuous
lengths on flanged spools and 12-inch diameter rolls, respec-
tively, for a tipping operation. In Mexico, the braided cord and
acetate plastic strip initially will be hand-threaded through a
Duclos Automatic High Speed Tipper machine used to tip shoelaces.
The Duclos machine automatically meters out the braided cord and
acetate strip to the appropriate lengths, and simultaneously
cuts the cord to 18-inch lengths and the acetate strip to one-
inch lengths from their spools/rolls and joins the acetate strip
to the ends of the cord by means of heat fusing the acetate. The
single lengths are then bulk packaged and imported into the U.S.
where they will be attached to paper shopping bags as handles.
ISSUE:
Whether the tipped, braided cordage is eligible for the
partial duty exemption available under HTSUS subheading
9802.00.80 when imported into the U.S.
LAW AND ANALYSIS:
HTSUS subheading 9802.00.80 provides a partial duty exemp-
tion for:
[a]rticles assembled abroad in whole or in part of fab-
ricated 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 HTSUS 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 documentary requirements of
section 10.24, Customs Regulations (19 CFR 10.24).
The term "assembly," for purposes of HTSUS subheading
9802.00.80, means the fitting or joining together of fabricated
components. Acceptable assembly operations are interpreted at
section 10.16(a), Customs Regulations (19 CFR 10.16(a)), which
provides that the assembly operation may consist of any method
used to join or fit together solid components, and enumerates
such operations as gluing and laminating as acceptable means of
assembly. Also, assembly operations may be preceded, accompa-
nied, or followed by operations of a minor nature which are
incidental to the assembly process. See, 19 CFR 10.16(b).
Regarding the tipping operation which joins the two U.S.
solid components--the acetate and the braided cord--by heat
fusing them together, we have previously determined that plastic
materials heat sealed together to make plastic shoe covers were
entitled to the partial duty exemption under item 807.00, Tariff
Schedules of the United States (TSUS) (the precursor tariff
provision to HTSUS subheading 9802.00.80). Headquarters Ruling
Letter (HRL) 042951 (November 26, 1975). See also, General
Instrument Corporation v. United States, C.D. 4408, 70 Cust.Ct.
64 (1973) (shrink sleeving is entitled to duty-free tariff
treatment under TSUS item 807.00); T.D. 56237(1), 99 Treas.Dec.
473 (1964) (components sealed on an automatic heat sealing
machine classifiable in TSUS item 807.00); and, HRL 554885
(February 23, 1990) (solvent sealing plastic connectors to vinyl
tubing to make medical appliances constitutes an acceptable
method of assembly for purposes of HTSUS subheading 9802.00.80).
In this case, the heat fusing operation is sufficiently analogous
to these other heat sealing operations as to constitute an
acceptable method of assembly.
Cutting the acetate and braided cord materials to length is
an operation specifically enumerated at 19 CFR 10.16(b)(6).
Therefore this aspect of the tipping operation constitutes an
acceptable operation incidental to the assembly process for
purposes of HTSUS subheading 9802.00.80.
The returned articles are classified in HTSUS subheading
5609.00.30, which describes "[a]rticles of yarn, strip or the
like of heading 5404 or 5405, twine, cordage, rope or cables, not
elsewhere specified or included...[o]f man-made fibers...." This
provision provides for a duty rate of 9% ad valorem.
HOLDING:
On the basis of the information and sample submitted, as all
the conditions of HTSUS subheading 9802.00.80 are satisfied, the
tipped articles of cordage to be further assembled in the U.S. as
shopping bag handles are eligible for the partial duty exemption
under this tariff provision when returned to the U.S., provided
the documentary requirements of 19 CFR 10.24 are met. The
returned merchandise is classified for duty purposes under HTSUS
subheading 5609.00.30, with duty at the rate of 9% ad valorem.
Sincerely,
Acting Director
Commercial Rulings Division