The eligibility of jackets and pants for partial duty exemption under subheading 9802.00.50, HTSUS.

N189082 December 15, 2011 CLA-2-98:OT:RR:NC:N3:357 CATEGORY: Classification TARIFF NO.: 9802.00.50 Ms. Mary Kastner PMK International LLC 1107 SW Grady Way Bldg. B, Suite 120 Renton, WA 98057 RE: The eligibility of jackets and pants for partial duty exemption under subheading 9802.00.50, HTSUS. Dear Ms. Kastner: In your letter dated October 17, 2011, on behalf of Outdoor Products, Inc., you requested a ruling on whether certain jackets and pants are eligible for partial duty exemption under subheading 9802.00.50, Harmonized Tariff Schedule of the United States (HTSUS). The merchandise in question was made in Taiwan, Cambodia and Vietnam, and was received in a damaged condition, with color bleeding. Duty was paid, but the goods did not enter the commerce of the United States. The importer intends to send the merchandise to Taiwan for washing and re-packing. Subheading 9802.00.50, HTSUS, provides a partial or complete duty exemption for articles exported from and returned to the United States after having been advanced in value or improved in condition by repairs or alterations, provided that the documentary requirements of 19 C.F.R. § 10.8, are satisfied. However, entitlement to this tariff treatment is precluded in circumstances where the operations performed abroad destroy the identity of the exported articles or create new or commercially different articles through a process of manufacture. Subheading 9802.00.50, HTSUS, treatment is also precluded where the exported articles are incomplete for their intended use and the foreign processing operation is a necessary step in the preparation or manufacture of finished articles. In this instance, the garments are complete for their intended use as wearing apparel prior to being exported to undergo washing. As exported from the United States, the garments are finished products in that they are suitable for use as wearing apparel. Although the operations performed on the garments alter the appearance of the garments, such operations do not otherwise enhance the character of the garments. The merchandise in its condition as exported from the United States and as returned to the United States can be marketed and sold to consumers for the same use. The operations performed on the goods do not result in the loss of the good’s identity nor create a new article with a different commercial use. Therefore, the aforementioned washing and re-packing constitute acceptable repairs or alterations within the meaning of subheading 9802.00.50. The garments will qualify for the special tariff treatment of that provision, provided that the documentary requirements of 19 C.F.R. § 10.8 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 William Raftery at (646) 733-3047. Sincerely, Robert B. Swierupski Director National Commodity Specialist Division