CLA-2-65:S:N:N5:353 881518
Ms. Carol Frechette
Watership Trading Companie
1025 Fraser Street
Bellingham, WA 98226
RE: The tariff classification of headwear assembled in Canada.
Dear Ms. Frechette:
In your letter dated December 15, 1992, received in this
office on December 29, 1992, you requested a tariff classification
ruling.
Your inquiry concerns the classification of woven cotton
canvas hats. The hats will be made from fabric of US origin. The
fabric will be cut into components in the US and shipped to Canada
where the parts will be sewn together into completed hats. The
hats will be returned to the US for finishing operations such as
the addition of grommets in the crown, installation of a chin strap
and a leather button and a hangtag. From the information provided
the hats are totally produced in the territory of Canada and the
US. The samples submitted will be returned to you, as requested.
The applicable subheading for the hats will be 6505.90.2060,
Harmonized Tariff Schedule of the United States (HTS), which
provides for Hats and other headgear...Other: Of cotton, flax or
both: Not knitted: Other. The duty will be 8 percent ad valorem.
Goods classifiable under subheading 6505.90.2060, HTS, which
have originated in the territory of Canada, will be entitled to a
4 percent rate of duty under the United States-Canada Free Trade
Agreement (FTA) upon compliance with all applicable regulations.
Your inquiry raises the question of whether heading 9802,
Harmonized Tariff Schedules of the United States (HTS), is
applicable to this merchandise. Subbheading 9802.00.80, HTS,
provides for articles 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, lubrication, and painting. The provision
levies a duty upon the full value of the imported article, less the
cost or value of the components which are products of the United
States, at the same rate that would apply to the imported article
were it not subject to subheading 9802.00.80, HTS. All three of
the above requirements must be met to receive the partial duty
exemption.
You have stated in your letter that the cut components are
merely sewn together in Canada before the item is imported into the
United States. In this case, it is our opinion that the hats may
be entered under subheading 9802.00.80, HTS, with allowances in
duty for the cost or value of the U.S. components incorporated
therein, upon compliance with the documentary requirements of 19
CFR 10.24. The information substantiating 9802.00.80, HTS, must be
submitted at time of entry.
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