Applicability of partial duty exemption under HTSUS subhead- ing 9802.00.80 to denim blue jean jackets decorated abroad with rhinestones

HQ 555293 January 16, 1990 CLA-2 CO:R:C:V 555293 GRV CATEGORY: CLASSIFICATION TARIFF NO.: 9802.00.80 Mr. Jose R. Cifuentes 300 Tresser Blvd. 17-H Stamford, Connecticut 06901 RE: Applicability of partial duty exemption under HTSUS subhead- ing 9802.00.80 to denim blue jean jackets decorated abroad with rhinestones Dear Mr. Cifuentes: This is in response to your letter of January 27, 1989, requesting a ruling on the applicability of subheading 9802.00.80, Harmonized Tariff Schedule of the United States (HTSUS), to denim blue jean jackets decorated with rhinestones to be imported from Colombia. A photograph of a typical jacket to be imported was enclosed with your letter. We regret the delay in responding to your request. FACTS: You state that semi-decorated, denim blue jean jackets, rhinestones of various colors and sizes, clips and staplers, all of U.S. origin, will be exported to Colombia for use in decor- ating the jackets by attachment of the rhinestones. (The jackets are partially decorated by painting in the U.S.). In Colombia, the rhinestones will be variously attached to the jackets-- dependent on the specific design painted on it--with a special device that resembles a stapler/press. Following this studding process, the finished jackets will be returned to the U.S. ISSUE: Whether the imported denim blue jean jackets decorated with rhinestones are eligible for the partial duty exemption under HTSUS subheading 9802.00.80. LAW & ANALYSIS: HTSUS subheading 9802.00.80 provides a partial duty exemp- tion for: [a]rticles assembled abroad in whole or in part of fab- ricated 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. An article entered under this tariff provision is subject to a duty upon the full value of the imported assembled article, less the cost or value of the U.S. components assembled therein, pro- vided there has been compliance with the documentation require- ments of section 10.24, Customs Regulations (19 CFR 10.24) (copy enclosed). "Assembly" operations for purposes of HTSUS subheading 9802.00.80 mean the fitting or joining together of fabricated components, such that the components are in a fixed relationship to each other. Acceptable assembly operations are interpreted at section 10.16(a), Customs Regulations (19 CFR 10.16(a)), which specifically enumerates the use of fasteners as an acceptable means of assembly. Further, assembly operations may be preceded, accompanied, or followed by operations of a minor nature which are incidental to assembly. See, 19 CFR 10.16(b). In the instant case, we find that the decorated jackets to be imported will be eligible for the partial duty exemption available under HTSUS subheading 9802.00.80. Attaching rhine- stones to jackets by crimping clips to the backside of the rhinestones after they are inserted through the jacket fabric constitutes an acceptable assembly operation. See, Headquarters Ruling Letter 555205 (August 25, 1989) (crimping constitutes an acceptable joining of two solids within the meaning of 19 CFR 10.16(a)). As the U.S. components will not lose their physical identities in the assembled article and will not be advanced in value or improved in condition except by assembly operations and operations incidental thereto, the rhinestone-decorated blue jean jackets will be eligible for the partial duty exemption under HTSUS subheading 9802.00.80 when returned to the U.S. CONCLUSION: On the basis of the information provided, the denim blue jean jackets decorated with rhinestones will be eligible for the partial duty exemption under HTSUS subheading 9802.00.80 when returned to the U.S., upon compliance with the documentary requirements of 19 CFR 10.24. Sincerely, John Durant, Director Commercial Rulings Division Enclosure