The tariff classification of a Fan Belt Repair Kit of U.S. origin that is shipped to Canada where it is packaged with Canadian packaging materials before being shipped back to the United States.

NY A82657 April 18, 1996 CLA-2-98:RR:NC:TP:350 A82657 CATEGORY: Classification TARIFF NO.: 9801.00.10 Mr. Michael Gerenda Innovative Ideas 101-415 Michigan Street Victoria, B.C. Canada V8V 1R8 RE: The tariff classification of a Fan Belt Repair Kit of U.S. origin that is shipped to Canada where it is packaged with Canadian packaging materials before being shipped back to the United States. Dear Mr. Gerenda: In your letter dated March 27, 1996, you requested a tariff classification ruling. You state that your company is a subdivision of and marketing arm for Beltlocker Industries of Lancaster, California. The subject item, identified as a "Fan Belt Repair Kit", consists of a 52" length of tubular rubber belting having a diameter of about 9/16", a barbed plastic connection insert and a razor blade which are all of U.S. manufacture. These items are shipped to Canada where they are put up for retail sale in Canadian packaging. This consists of placing a cardboard insert printed with instructions for use, and a paper ruler measuring about 2" into a plastic package which will contain the U.S. supplied components. The cardboard insert and paper ruler are produced in Canada. These repair kits are designed to replace broken and inoperable V-belts on any make and model of automobile, light truck, 4x4, R.V., boat or any type of machinery currently using a V-belt. The razor blade contained in each kit is used to cut the belting down to the appropriate size. In the instant case, we believe that the foreign operations performed in Canada do not advance in value or improve in condition the U.S. supplied components. Further, with respect to the packaging operations performed in Canada; these operations do not advance in value or improve in condition the product. In this regard, General Rule of Interpretation 5(b) HTSUS, provides that "packing materials and packing containers entered with the goods therein shall be classified with the goods if they are of a kind normally used for packing such goods" and are not for repetitive use. Such is deemed to be the case here. The value of the non-reusable packing materials or containers is considered a part of the value of its contents and is dutiable at the rate of its contents. Accordingly, the applicable tariff provision for the product including the packaging will be 9801.00.10, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for products of the United States when returned after having been exported, without having been advanced in value or improved in condition by any process of manufacture or other means while abroad. The general rate of duty will be Free. This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 CFR 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 George Barth at 212-466-5884. Sincerely, Roger J. Silvestri Director National Commodity Specialist Division