The eligibility for partial duty exemption under subheading 9802.00.5060, HTSUS, for ladies knit pullovers.

N240884 April 23, 2013 CLA-2-61:OT:RR:NC:N3:359 CATEGORY: CLASSIFICATION TARIFF NO.: 9802.00.5060 Ms. Emilia Macias Jerry Leigh Entertainment Apparel 7860 Nelson Road Van Nuys, CA 91402 RE: The eligibility for partial duty exemption under subheading 9802.00.5060, HTSUS, for ladies knit pullovers.Dear Ms. Macias:In your letter dated March 27, 2013, you requested a ruling concerning the eligibility for partial duty exemption under subheading 9802.00.5060, HTSUS, for ladies knit pullovers that will be imported into the United States. You state that ladies knit t-shirts were imported into the United States on May 12, 2011. You intend to export the t-shirts to Guatemala to undergo embellishing operations. The operations include screen-printing, applying clear gel, and applying glitter to the gel area on the fabric. After the operations are performed in Guatemala, the knit pullovers will be returned to the United States. Upon re-importation the garments will be classified under 6110.20.2079, HTSUS, as ladies knit pullovers.We are returning your samples.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 appropriate documentary requirements of 19 CFR 10.8 are met. 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 prior to being exported to Guatemala to undergo the stated operations. 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 in Guatemala alter the appearance of the garments, such operations do not otherwise enhance the character of the garments. They are shipped to Guatemala solely for screen-printing, applying clear gel, and applying glitter to the gel on the fabric before being returned to the United States. The merchandise in its condition as exported from the United States and as returned from Guatemala can be marketed and sold to consumers for the same use. The operations performed in Guatemala do not result in the loss of the good’s identity nor create a new article with a different commercial use. Therefore, the screen-printing, applying clear gel, and applying glitter to the gel on the fabric performed in Guatemala constitute acceptable repairs and alterations within the meaning of subheading 9802.00.50, HTSUS. The garments will qualify for the special tariff treatment of that provision, provided that the documentary requirements of 19 C.F.R. § 181.64 are met.This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177). A copy of this ruling letter 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 this ruling, contact National Import Specialist 359 at 646-733-3049.Sincerely, Thomas J. Russo Director National Commodity Specialist Division