Applicability of subheading 9802.00.50, HTSUS, to fans that have been altered in Mexico

N220319 June 25, 2012 CLA-2-98:OT:RR:NC:N1:102 CATEGORY: Classification TARIFF NO.: 9802.00.50 Mr. John Paul Vyborny Capin-Vyborny, LLC. 949 West Bell Road Nogales, AZ 85621 RE: Applicability of subheading 9802.00.50, HTSUS, to fans that have been altered in Mexico Dear Mr. Vyborny: In your letter dated June 5, 2012 you requested a tariff classification ruling on behalf of your client, Avnet Inc. Descriptive literature and photographs were included with your submission. You describe the articles in question as electric fans classifiable under subheading 8414.59.6095, Harmonized Tariff Schedule of the United States (HTSUS), which provides for other fans. The fans are available in various sizes and can be used in many applications. In your request, you indicate that Avnet Inc. purchases these fans in bulk. In most instances, the fans are manufactured in China, although they may be produced in other foreign countries as well. The fans are then exported from the United States to Mexico. In Mexico, Avnet Inc. alters the electrical connection to the fan to the purchaser’s request. After the connectors or terminals are added, the fans are tested and then repackaged. In your submission, you inquire as to the applicability of HTSUS subheading 9802.00.50 to the fans when re-imported into the United States. Under HTSUS subheading 9802.00.50 articles exported from and returned to the U.S., after having been advanced in value or improved in condition by repairs or alterations outside the U.S., may qualify for a duty exemption, provided the foreign operation does not destroy the identity of the exported articles or create new or commercially different articles through a process of manufacture. Based on our review of the description of the operations performed in Mexico that you have made available, we find those operations (addition of terminals or connectors) to be repairs and/or alterations within the meaning of subheading 9802.00.50, HTSUS. The addition of the terminal or connectors does not destroy the essential characteristics or change the identity of the fan. Provided the documentary requirements of Section 181.64 of the Customs Regulations (19 CFR 181.64) are satisfied, the altered fans will qualify for a duty exemption under HTSUS subheading 9802.00.50 when returned to the U.S. 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 T. Brock at (646) 733-3009. Sincerely, Thomas J. Russo Director National Commodity Specialist Division