CLA-2-98:OT:RR:NC:1:110
Ms. Sherri Desjardins
UPS Trade Management Services, Inc.
600 Fritz Drive
Coppell, TX 75019
RE: The applicability of partial duty exemption under subheading 9802.00.80, Harmonized Tariff Schedule of the United States (HTSUS), for circuit breaker parts of United States origin imported from Malaysia.
Dear Ms. Desjardins:
In your letter dated August 31, 2009, you requested a ruling on the applicability of a duty allowance for components of United States (U.S.) origin used in the assembly of a circuit breaker trip unit subassembly, on behalf of your client, G. E. Industrial PR LLC. The item under consideration is the BBB+C circuit breaker trip mechanism subassembly, part number 252B1797G2. A finished sample of the BBB+C subassembly was submitted with your ruling request.
From the information you provided, raw materials of U.S. origin consisting of bi-metal strips, flat copper strip in coils, copper braided wire and powdered metal comprising of 60% silver and 40% copper is shipped to Puerto Rico, a recognized Customs Territory of the U.S. In Puerto Rico the following manufacturing process is performed as follows: the flat copper strip is fed through a press that stamps out individual circuit breaker trip mechanism blades, which are then plated; and the powdered metal is made into silver contact pads through a sintering process. The circuit breaker trip mechanism blades, silver contact pads and bi-metal strips, are shipped from Puerto Rico to Malaysia for assembly into the trip unit subassembly. The circuit breaker trip mechanism blades, silver contact pads and bi-metal strips would be classified under subheading 8538.90.80, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Parts suitable for use solely or principally with the apparatus of heading 8535, 8536, or 8537: Other: Other: Other.”
The copper braided wire on rolls is shipped from Puerto Rico to Singapore where the wire is cut to specific lengths and the ends are solidified, which prevents unraveling of the cut braided wire. The cut braided wire is then shipped to Malaysia to be assembled with the circuit breaker trip mechanism blades, silver contact pads and bi-metal strips forming the BBB+C subassembly. The assembly process in Malaysia consists of welding/soldering the cut braid wire and silver contact pads to the trip mechanism blades and bi-metal strips. Upon completion, the subassembly will be shipped from Malaysia to Puerto Rico where the finished circuit breaker will be manufactured. The complete BBB+C subassembly is classified under subheading 8538.90.8020, HTSUS, which provides for “Parts suitable for use solely or principally with the apparatus of heading 8535, 8536, or 8537: Other: Other: Other: Of automatic circuit breakers.”
Section 10.16(a), Customs Regulations (19 CFR 10.16(a)), provides that assembly operations for purposes of subheading 9802.00.80 encompass any method used to join solid components such as welding, soldering, riveting, force fitting, or the use of fasteners and may be accompanied by operations that are incidental to the assembly as provided in section 10.16(b).
The U.S. manufactured circuit breaker trip mechanism blades, silver contact pads and bi-metal strips are exported to Malaysia in condition ready for assembly without further fabrication. They do not lose their physical identity of such articles by change in form, shape, or otherwise, and are not advanced in value or improved in condition abroad except by being assembled. Therefore, an allowance in duty may be made under this tariff provision for the cost or value of the U.S. made components, upon compliance with the documentation requirements of 19 CFR 10.24. However, the cut braided wire does not qualify for such treatment as it is further processed in Singapore and would lose its duty free eligibility.
Based on the information submitted, the BBB+C subassembly, part number 252B1797G2, will be eligible for a partial duty exemption under subheading 9802.00.8068, HTSUS, which 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: Other.”
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at http://www.usitc.gov/tata/hts/.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Thomas Campanelli at (646) 733-3016.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division