Applicability of partial duty exemption to certain caps assembled in Korea.

HQ 544100 May 25, 1988 CLA-2 CO:R:C:V 544100 DBI CATEGORY: Classification TARIFF NO.: 9802.00.80, HTS (807.00, TSUS) Ms. Ann M. Norris A.N. Deringer, Inc. 30 West Service Road Champlain, New York 12919-9703 RE: Applicability of partial duty exemption to certain caps assembled in Korea. Dear Ms. Norris: In your letter of November 9, 1987, you requested a ruling on behalf of Cap-Man Incorporated, concerning the applicability of item 807.00, Tariff Schedules of the United States (TSUS; 19 U.S.C. 1202), to certain caps to be assembled in Korea and imported by your client. A sample has been submitted for examination. FACTS: You state that a foam fabric will be applied to the back of a printed knit fabric, both of which are purchased from U.S. manufacturers in rolls. According to your letter, each piece is cut to the appropriate shape "ready for assembly to the cap." Both the application of the foam and the cutting will be performed in the U.S. You do not indicate whether or not the mesh fabric, visor, or other parts assembled into the finished product are of U.S. origin nor do you explain how the cut pieces of fabric are attached to the rest of the cap. However, it appears from the sample provided that the cap was assembled by a method used to fit together solid components, i.e., gluing or sewing. ISSUE: Whether the described caps will be eligible for the partial exemption from duty provided for in item 807.00, TSUS (9802.00.80, Harmonized Tariff Schedule of the United States (HTSUSA)), when imported into the U.S. - 2 - LAW AND ANALYSIS: Item 807.00, TSUS, applies to articles assembled abroad in whole or in part of fabricated components, the product of the U.S., with no operations performed thereon except the attachment of the components to form the imported merchandise, and operations incidental thereto. An article classified under item 807.00, TSUS, is subject to the duty upon the full appraised value of the imported article, less the cost or value of such products of the U.S. Sections 10.11-10.24, Customs Regulations (19 CFR 10.11-10.24), set forth definitive and interpretive regulations pertaining to the construction of item 807.00, TSUS, and related provisions of law. Section 10.16(a), Customs Regulations (19 CFR 10.16(a)), provides that the assembly operations performed abroad may consist of any method used to join or fit together solid components, such as gluing or sewing and may be preceded, accompanied, or followed by operations incidental to the assembly as illustrated in paragraph (b) of that section. HOLDING: We are of the opinion that the joining or fitting together of cut pieces of fabric with the other components by sewing or gluing are acceptable assembly operations. Therefore, on the basis of the samples and information submitted, allowances in duty may be made under item 807.00, TSUS, for the cost or value of the exported cut and shaped pieces of foam and knit fabrics, upon compliance with the applicable Customs Regulations. No allowance may be made under item 807.00, TSUS, for the cost or value of the other cap parts if they are not products of the U.S. Sincerely, John Durant Director, Commercial Rulings Division 1cc: CLA-2 CO:R:C:V:DIZZO:SDZ:5/18/88 Ms. Ann M. Norris A.N. Deringer, Inc. 30 West Service Road Champlain, New York 12919-9703