Partial duty exemption for reversing switches assembled in Mexico.

HQ 556423 March 30, 1992 CLA-2 CO:R:C:S 556423 RA CATEGORY: Classification TARIFF NO.: 9802.00.80 Mr. Philip Freeman Cain Customs Brokers, Inc. P.O. Box 150 Hildago, Texas 78557 RE: Partial duty exemption for reversing switches assembled in Mexico. Dear: Mr. Freeman: This is in response to your letter of November 19, 1991, requesting a ruling on the duty allowance applicable to certain reversing switches assembled in Mexico. FACTS: You state that the Furnace Electric Company of Osceola, Iowa plans to import reversing switches used in the operation of automatic electric overhead doors. The switches are assembled into three main subassemblies from parts described in a bill of materials and photographs, copies of which you submitted. It is assumed that the parts involved are made in the United States. The crossarm subassembly is assembled by placing movable contacts and contact springs in position on a crossarm using tweezers. The coil/base subassembly is assembled by placing a spring and magnet in the base. A coil is also affixed to the base after its wires are straightened in a fixture. The contact board assembly is made by affixing several contacts, armatures, armature pads, and lever supports by means of screws. The final assembly is accompllshed by joining the various subassemblies utilizing screws. ISSUE: Will the domestic-made parts assembled into the reversing switches be entitled to an allowance in duty under the provisions of subheading 9802.00.80, Harmonized Tariff Schedule of the United States (HTSUS)? -2- LAW AND ANALYSIS: Subheading 9802.00.80, HTSUS, provides a partial exemption from duty for articles assembled abroad in whole or in part of U.S.-fabricated components, provided the components (a) are exported in condition ready for assembly without further fabrication; (b) do not lose their physical identity by change in form, shape or otherwise, and; (c) are not 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 of subheading 9802.00.80, HTSUS, must be satisfied before a component may receive a duty allowance. An article entered under subheading 9802.00.80, HTSUS, is subject to duty upon the full value of the imported assembled article less the cost or value of such U.S. components, upon compliance with the documentation requirements of section 10.24, Customs Regulations (19 CFR 10.24). Section 10.16(a), Customs Regulations (19 CFR 10.16(a)), states that the assembly operations performed abroad may consist of any method used to join or fit together solid components and may be preceded, accompanied, or followed by operations incidental to the assembly process. The joining and fitting of the various parts of the switches by means of screws and force fitting are considered to be qualified assembly operations under the statute and regulations. Accordingly, on the basis of the submitted facts, we are of the opinion that an allowance in duty may be made for the cost or value of the U.S.-made parts contained in the imported switches upon compliance with the documentation requirements of 19 CFR 10.24. HOLDING: An exemption from duty may be accorded U.S.-made components assembled abroad into reversing switches by utilizing screws and force fitting to join the various parts. Sincerely, John Durant, Director Commercial Rulings Division