Eligibility under 9802.00.50, HTS for halter top components that have been exported for beading

NY L83470 April 7, 2005 CLA-2-98:RR:NC:TA:353 L83470 CATEGORY: Classification TARIFF NO.: 9802.00.50 Mr. Arthur W. Bodek Grundfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP 399 Park Ave., 25th Floor New York, NY 10022-4877 RE: Eligibility under 9802.00.50, HTS for halter top components that have been exported for beading Dear Mr.: Bodek:      In your letter dated March 17, 2005, on behalf of The Urban Apparel Group, you requested a ruling on the eligibility for reduced duty status under 9802.00.50, Harmonized Tariff Schedule of the United States (HTS) for beading assembly operation on a halter top components: You submitted two samples of the process, showing the garment before and after the embellishment is added. You have indicated that the halter-top components are of US fabric, cut in the United States into a halter style garment. Certain of the components will be sent to China for a beading operation in which decorative beads will be sewn onto the garments components. They will then be re-imported into the United States.  Subheading 9802.00.50, HTSUS, provides for a full or partial duty exemption for articles that are returned to the United States after having been exported to be advanced in value or improved in condition by means of repairs or alterations, provided that the appropriate documentary requirements of 19 CFR 181.64 are met. This office believes that the beading operation that occurs in China qualifies as an acceptable operation under subheading 9802.00.50, HTSUS. The garment components in condition as exported and returned to the United States have the same use when sold to consumers. The operation in China does not result in the loss of the good’s identity. Neither does it create a new article with a new and different commercial use. Therefore, the operation that occurs in China constitutes an acceptable alteration within the meaning of 9802.00.50, HTSUS, and the garment components qualify for the special tariff treatment of that provision. 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 Kenneth Reidlinger at 646-733-3053. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division