The applicability of HTSUS subheading 9802.00.80 to stainless steel tube fittings.

NY H80169 May 18, 2001 CLA-2-73:RR:NC:1:117 H80169 CATEGORY: Classification TARIFF NO.: 9802.00.80/7307.29.00 Mr. Steven W. Baker Steven W. Baker and Associates One Sutter Street, Suite 1004 San Francisco, California 94104-4919 RE: The applicability of HTSUS subheading 9802.00.80 to stainless steel tube fittings. Dear Mr. Baker: In your letter dated April 20, 2001 on behalf of Kinetic Systems, you requested a ruling concerning the applicability of subheading 9802.00.80, Harmonized Tariff Schedule of the United States (HTSUS), to certain stainless steel tube fittings assembled abroad from U.S. components. Descriptive literature and photos were submitted with your request. The products to be imported are known as gas stick weldments. These welded assemblies are clearly depicted in the submitted brochure. The weldments are stainless steel tube fittings made up of four or five basic components such as nuts, caps, plugs, glands, short tubes, elbows and/or tees and gaskets. These stainless steel components are produced in the United States and will be shipped to Malaysia for assembly. The assembly operation will consist of cutting the tubes to length as necessary and then joining the various components together by welding to form various types of tube fittings. The applicable subheading for the stainless steel tube fittings will be 7307.29.00, Harmonized Tariff Schedule of the United States (HTS), which provides for tube or pipe fittings (for example, couplings, elbows, sleeves), of iron or steel, other, of stainless steel, other. The rate of duty will be 5 percent ad valorem. You ask whether the imported stainless steel weldments/tube fittings will be eligible for a partial duty exemption under subheading 9802.00.80, HTS. Subheading 9802.00.80, HTS, provides a partial duty exemption for articles assembled abroad in whole or in part of fabricated 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. All three requirements of subheading 9802.00.80, HTS, must be satisfied before a component may receive a duty allowance. An article entered under this tariff provision is subject to duty upon the full value of the imported article, less the cost or value of such U.S. components assembled therein, upon compliance with the documentary requirements of section 10.24, Customs Regulations (19 C.F.R. 10.24). Section 10.14 (a) Customs Regulations [19 C.F.R. 10.14 (a)] states that the components must be in condition ready for assembly without further fabrication at the time of their exportation from the United States to qualify for the exemption. Components will not lose their entitlement to the exemption by being subjected to operations incidental to the assembly either before, during, or after their assembly with other components. Section 10.16 (a) Customs Regulations [19 C.F.R. 10.16 (a)] provides that the assembly operation performed abroad may consist of any method used to join or fit together solid components, such as welding, soldering, riveting, force fitting, gluing, laminating, sewing, or the use of fasteners. Operations incidental to the assembly process are not considered further fabrication operations if they are of a minor nature. Cutting tubing to length is considered an operation incidental to the assembly process. In the instant case, cutting the steel tubes to length is an operation incidental to the assembly process, and joining the U.S. components together by welding is an acceptable assembly operation. Therefore, the stainless steel welded tube fittings may be entered under subheading 9802.00.80 with allowances in duty for the cost or value of the U.S. components incorporated therein, upon compliance with the documentary requirements of 19 C.F.R. 10.24. This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 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 Paula Ilardi at 212-637-7016. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division