The applicability of the partial duty exemption under 9802.0080, HTSUS

N067498 July 9, 2009 CLA-2-62:OT:RR:NC:TA:360 CATEGORY: Classification TARIFF NO.: 9802.00.80 Mr. W.J. Gonzalez Trans-Union Customs Service, Inc. 11941 S. Prairie Avenue Hawthorne, CA 90250 RE: The applicability of the partial duty exemption under 9802.0080, HTSUS Dear Mr. Gonzalez: This is in reply to your letter dated June 18, 2009 and received on July 6, 2009, on behalf of Strategic Distribution, LLC., requesting a ruling on the applicability of subheading 9802.00.80, Harmonized Tariff Schedule of the United States (HTSUS), to women’s wearing apparel which will be imported into the United States. According to your submission, lace of U.S. origin will be exported in continuous lengths, cut to length and sewn onto various articles of women’s wearing apparel during the assembly process in Vietnam and other countries. The lace will be used as decorative trimming. You question whether the lace will be eligible for partial duty exemption under subheading 9802.00.80, HTSUS, upon importation into the U.S. Subheading 9802.0080, HTSUS, provides a partial duty exemption for: [a]rticles 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 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 the requirements of subheading 9802.00.80, HTSUS, 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 cost or value of the imported assembled article, less the cost or value of the U.S. components assembled therein, upon compliance with the documentary requirements of section 10.24, Customs Regulations (19 CFR 10.24). Section 10.14(a), Customs Regulations (19 CFR 10.14(a), states in part: [t]he 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 assembly with other components. The cutting of the lace to length is an operation that is considered incidental to the assembly. Sewing the lace to the garments is an acceptable assembly operation within the meaning of the subheading 9802.00.80, HTSUS. Therefore, the lace component will be eligible for the duty allowance under subheading 9802.00.80, HTSUS. Assuming that the operations performed in the various countries meet the requirements noted above, the garments may be entered under subheading 9802.00.80, HTSUS, with allowances in duty for the cost or value of the U.S. components, provided documentary requirements of 19 CFR 10.24 are satisfied. 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 Brenda Wade at (646) 733-3051. Sincerely, Robert B. Swierupski Director National Commodity Specialist Division