The tariff eligibility of a women’s garment for partial duty exemption under subheading 9802.00.80, HTSUS

N223505 July 23, 2012 CLA-2-61:OT:RR:NC:N3:359 CATEGORY: Classification TARIFF NO.: 6110.30.3059 Ms. Emilia Arroyo Jerry Leigh Entertainment Apparel 7860 Nelson Road Van Nuys, CA 91402 RE: The tariff eligibility of a women’s garment for partial duty exemption under subheading 9802.00.80, HTSUS Dear Ms. Arroyo: In your letter dated June 25, 2012, you requested a tariff classification ruling on whether a women’s garment is eligible for partial duty exemption under subheading 9802.00.80, Harmonized Tariff Schedule of the United States (HTSUS). The submitted sample is being returned to you. Style JT11811 is a women’s pullover constructed of 65% polyester 35% rayon finely knitted fabric. The outer surface of the fabric measures more than nine stitches per two centimeters in the direction that the stitches were formed. The garment is constructed of two panels, a front panel and a back panel which incorporate the sleeves. The garment features a rounded front neckline, short hemmed dropped sleeves, and a hemmed curved garment bottom. Various sublimation print images that include glitter are found at the center of the front panel. Large sublimation printed dots are on the remainder of front and back panels of the garment. Screen printed marking is found at the inside center of the neck area. The garment extends to below the waist. The applicable subheading for the garment will be 6110.30.3059, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Sweaters, pullovers, sweatshirts, waistcoats (vests) and similar articles, knitted: Of man-made fibers: Other: Other: Other: Women’s or girls’: Other. The duty rate will be 32% ad valorem. Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at http://www.usitc.gov/tata/hts/. You state that the fabric is made in the United States from foreign yarn. The fabric will be cut into component parts in the United States, followed by assembly in Guatemala using Chinese sewing thread. The sublimation printing and the screen printed neck label will be done in Guatemala. The price ticket, the plastic bag, carton and carton sticker will be made in Guatemala. The price ticket plastic bullet will be made in China. The sublimation print paper will be made in the United States. The garments will be packed in Guatemala, where the garments will be exported to the United States. Subheading 9802.00.80, HTSUS, provides a partial duty exemption for: Articles … 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 (c) 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 three 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 appraised value of the imported assembled article, less the cost or value of the U.S. components assembled therein, upon compliance with the documentation requirements of section 10.24, CBP Regulations.Section 10.14(a), CBP Regulations (19 C.F.R. § 10.14(a)), states in part that: The 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 their assembly with other components.       Section 10.16(a), CBP Regulations (19 C.F.R. § 10.16(a)), provides that the assembly operation performed abroad may consist of any method used to join or fit together solid components, such as welding, soldering, riveting, force fitting, gluing, lamination, sewing, or the use of fasteners.Operations incidental to the assembly process are not considered further fabrication operations, as they are of a minor nature and cannot always be provided for in advance of the assembly operations. See 19 C.F.R. § 10.16(a). However, any significant process, operation or treatment whose primary purpose is the fabrication, completion, physical or chemical improvement of a component precludes the application of the exemption under subheading 9802.00.80, HTSUS, to that component. See 19 C.F.R. § 10.16(c). Subheading 9802.00.80, HTSUS, requires only that “articles … assembled abroad in whole or in part of fabricated components, the product of the United States” satisfy the three conditions identified in the provision under (a), (b), and (c) (emphasis added). Therefore, the further fabrication, i.e., sublimation printing found on both the front and rear panels would preclude the garment from satisfying the requirements of subheading 9802.00.80, HTSUS. Therefore, since both components (the front and rear panels) of the two panel garment have been advanced in value by sublimation printing, the pullover is not eligible for a partial duty exemption under subheading 9802.00.80, HTSUS, when returned to the United States. 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 359 Francine Vivona-Brock at (646) 733-3049. Sincerely, Thomas J. Russo Director National Commodity Specialist Division