Applicability of provision for assembled articles in subheading 9802.00.80, HTSUS, to automotive brakes and boosters made in Brazil

HQ 555401 June 16, 1989 CLA-2-CO:R:C 555401 RA CATEGORY: Classification TARIFF NO.: 9802.00.80, HTSUS Mr. David A. Fuller Director, Field Logistics & Planning Bendix Transportation Management Corporation 1657 Commerce Drive, P.O. Box 3898 South Bend, Indiana 46619-0898 RE: Applicability of provision for assembled articles in subheading 9802.00.80, HTSUS, to automotive brakes and boosters made in Brazil Dear Mr. Fuller: This is in regard to your letter of May 19, 1989, requesting a ruling on the tariff treatment of a drum brake and a power brake booster assembled abroad. FACTS: Fabricated components of U.S. origin are exported to Brazil in finished form and joined with foreign-made parts to produce complete drum brakes and power brake boosters. You state that the exported brake lining is riveted to a brake shoe which is united with a backing plate and the exported cable guide is riveted to the backing plate. The resulting assembly is then united with components of local origin to produce a finished drum brake. The components for the power brake booster are exported from the U.S. in finished form and consist of a check valve, gasket, seal, disc, poppet, and diaphragm. These articles are assembled to components of Brazilian origin to produce a finished power brake booster. ISSUE: Will the assembled components of U.S. origin qualify for tariff treatment under the provisions of subheading 9802.00.80, Harmonized Tariff Schedule of the U.S. (HTSUS)? LAW AND ANALYSIS: Subheading 9802.00.80, HTSUS, provides for articles assembled abroad in whole or in part of fabricated components of U.S. origin with no operations performed thereon except the attachment of the components and operations incidental thereto. Duty is assessed on the appraised value of the imported articles less the cost or value of the exported U.S.-made components. You indicate that the components of U.S. origin are exported in finished condition and undergo no additional manufacturing operations abroad except for the assembly process. The exported components are united with other parts of the brake or booster by means of rivets or by other qualified assembly operations as defined in the regulations. See section 10.16(a), Customs Regulations (19 CFR 10.16(a)). Operations performed which do not constitute assembly appear to be incidental thereto and not sufficient to preclude allowances under subheading 9802.00.80, HTSUS. HOLDING: An allowance in duty may be accorded fabricated components of U.S. origin which have been assembled abroad with foreign parts by means of rivets and similar permanent methods to produce complete automotive drum brakes and power brake boosters, upon compliance with sections 10.11-10.24, Customs Regulations (19 CFR 10.11-10.24), under subheading 9802.00.80, HTSUS. Sincerely, John Durant, Director Commercial Rulings Division