CLA-2-56:OT:RR:NC:N3:351
Mr. Peter Fitch
Fitch, King, LLC
Attorneys and Counselors at Law
P.O. Box 8
Monmouth Beach, NJ 07750
RE: The tariff eligibility of a polypropylene rope for partial duty exemption under subheading 9802.00.80, HTSUS
Dear Mr. Fitch:
In your letter dated May 21, 2015, you requested a tariff classification ruling on whether a three-strand twisted rope is eligible for partial duty exemption under subheading 9802.00.80, Harmonized Tariff Schedule of the United States (HTSUS). Your request was filed on behalf of your client, General Works Products, Inc. The submitted samples are being returned to you.
The rope in question is assembled in part using a United States component referred to as multiplex strand. The U.S. multiplex strand is wound around a core referred to as “Danline.” Three of these assemblies are then twisted to form the imported three-strand rope. The polypropylene “Danline” cores constitute 53% of the weight of the three-strand rope; the polyester multiplex strands constitute the remainder (47%).
The applicable subheading for polypropylene rope will be 5607.49.2500, Harmonized Tariff Schedule of the United States (HTSUS), which provides for twine, cordage, ropes and cables, whether or not plaited or braided and whether or not impregnated, coated, covered or sheathed with rubber or plastics: . . Of polyethylene or polypropylene:.. Other:.. not braided or plaited:.. Other. The general rate of duty will be 9.8 cents per kg plus 5.3 percent ad valorem.
In your letter, you ask if the multiplex strand are entitled to a duty reduction under subheading 9802.00.80, HTSUS, which provides a partial duty exemption 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, lubricating, and painting. All three requirements (a, b, and c, above) of subheading 9802.00.80, HTSUS, must be satisfied before a component may receive a duty allowance. An article entered under this tariff provision is subject to duty upon the full value of the imported article, less the cost or value of such U.S. components assembled therein, upon compliance with the documentary requirements of Section 10.24, Customs Regulations (19 C.F.R. 10.24).
Section 10.14(a) Customs Regulations (19 C.F.R. 10.14(a)) states that the components must be in condition ready for assembly without further fabrication at the time of their exportation from the United States to qualify for the exemption. Components will not lose their entitlement to the exemption by being subjected to operations incidental to the assembly before, during, or after their assembly with other components. Section 10.16(a) Customs Regulations (19 C.F.R. 10.16(a)) provides that the assembly operation performed abroad may consist of any method used to join or fit together solid components. Operations incidental to the assembly process are not considered further fabrication operations if they are of a minor nature.
Twisting is considered an allowable assembly process. Therefore, the rope that is created in India may be entered under subheading 9802.00.80, HTSUS, with allowances in duty for the cost or value of the U.S. components incorporated therein, upon compliance with the documentary requirements of 19 C.F.R. 10.24.
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 the 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 Adleasia Lonesome at [email protected].
Sincerely,
Gwenn Klein Kirschner
Director
National Commodity Specialist Division