CLA-2-98:OT:RR:NC:WA:356
Ms. Amy Johannesen
Mr. Robert Grasing
Cerny Associates, P.C.
24 Smith Street
Building 2, Suite 102
Pawling, NY 12564
RE: The eligibility of certain knit garments for partial duty exemption under subheading 9802.00.50, HTSUS.
Dear Ms. Johannesen and Mr. Grasing:
In your letter dated October 16, 2009, you requested a ruling on behalf of Rawlings Sporting Goods Company, Inc., on whether certain knit sports apparel, such as pullover jerseys, shorts, baseball jerseys, and pants of man-made fiber or cotton are eligible for partial duty exemption under subheading 9802.00.50, Harmonized Tariff Schedule of the United States (HTSUS).
You state that the sports apparel will be imported into the United States from suppliers in various countries and the applicable duties and fees will be paid upon entry. On occasion, without benefit of drawback, Rawlings will export certain apparel items to an overseas processor for product labeling. The labeling consists of either embroidering the Rawlings trademark logo onto the apparel goods, transferring a heat seal Rawlings trademark logo onto the apparel goods, or sewing a locker label or patch onto the apparel goods. No other changes are made to the garments. Upon return, you state that the products will b e accompanied by the importer declaration required by 19 C.F.R. § 10.8 (a)(2) and the declaration from the person performing the alterations as required by 19 C.F.R. § 10.8 (a)(1).
Subheading 9802.00.50, HTSUS, provides a partial or complete duty exemption for articles exported from and returned to the United States after having been advanced in value or improved in condition by repairs or alterations, provided that the documentary requirements of 19 C.F.R. § 10.8, are satisfied. However, entitlement to this tariff treatment is precluded in circumstances where the operations performed abroad destroy the identity of the exported articles or create new or commercially different articles through a process of manufacture. Subheading 9802.00.50, HTSUS, treatment is also precluded where the exported articles are incomplete for their intended use and the foreign processing operation is a necessary step in the preparation or manufacture of finished articles.
In this instance, the garments are complete for their intended use as wearing apparel prior to being exported to undergo the embroidering, heat seal application, or the affixing of the locker label. As exported from the United States, the garments are finished products in that they are suitable for use as wearing apparel. Although the operations performed on the garments alter the appearance of the garments, such operations do not otherwise enhance the character of the garments. The merchandise in its condition as exported from the United States and as returned to the United States can be marketed and sold to consumers for the same use. The operations performed on the goods do not result in the loss of the good’s identity nor create a new article with a different commercial use.
Therefore, the aforementioned embroidering, heat seal application,or affixing of the locker label constitute acceptable alterations within the meaning of subheading 9802.00.50. The garments will qualify for the special tariff treatment of that provision, provided that the documentary requirements of 19 C.F.R. § 10.8 are satisfied.
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 Mary Ryan at 646-733-3271.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division