The tariff classification of a snowmobile cover from China.

NY I88910 November 26, 2002 CLA-2-63:RR:NC:N3:351 I88910 CATEGORY: Classification TARIFF NO.: 6307.90.9889 Ms. Dianne Fassio Commercial Sewing, Inc. 65 Grant Street Torrington, CT 06790 RE: The tariff classification of a snowmobile cover from China. Dear Ms. Fassio: This letter replaces the ruling letter we sent to you under file number I88271. The purpose of this replacement letter is to correct an omission. A corrected letter follows. In your letter dated November 4, 2002, you requested a ruling on tariff classification. You submitted a sample of a snowmobile cover, part number 2874205. Each cover is designed to fit the specifications of a specific model snowmobile. Each will be produced with the logo of the specific OEM dealer. You state that it is made of 100% cotton duck fabric, which is purchased in both the United States and India. The fabric is dyed and finished (you have not defined “finished”) in the United States (for quality control purposes) and is then sent to China where the covers are manufactured. Your sample will be returned as requested. You request consideration under subheading 9802.00.50, Harmonized Tariff Schedule of the United States (HTS), for the U.S. material exported to China. Subheading 9802.00.50, HTS, provides for the assessment of duty on only the value of repairs or alterations performed on articles returned to the U.S. after having been exported for that purpose. However, the application of this tariff provision is precluded in circumstances where the operations performed abroad destroy the identity of the articles or create new or commercially different articles of commerce. Such is deemed to be the case in the situation described here since you are exporting fabric that is manufactured into the covers. Please note that the cost or value of the dyed and finished fabric which you send to China will represent an assist under Section 402 of the Tariff Act (TA). The term “assist” is defined as that which is supplied directly or indirectly by the buyer of imported merchandise, free of charge or at reduced cost, for use in connection with the sale of the merchandise for export to the U.S., under 19 U.S.C. 1401a(h)(1)(A). There are four categories of assists, but only the first, encompassing “materials, components, parts and similar items incorporated in the imported merchandise,” is potentially relevant to the instant situation. As an assist, the value of the fabric must be added to the processing costs of the snowmobile covers before the ad valorem rate of duty is applied, pursuant to Section 402, TA. Additionally, please note that the value of any assist will include transportation costs to the place of production. See Section 152.103(d), Customs Regulations (19 C.F.R. §152.103(d)). The applicable subheading for the snowmobile covers will be 6307.90.9889, HTS, which provides for other made up textile articles, other. The general rate of duty will be seven percent ad valorem. 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 Mitchel Bayer at 646-733-3102. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division