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NY 804442

Dec. 22, 1994

CLA-2-61:S:N:N5:361 804442


TARIFF NO.: 9802.00.8000

Ms. Helene Urbaitel
30 East 33rd Street
New York, NY 10016

RE: The dutiable status of a pullover assembled and screen printed in Costa Rica.

Dear Ms. Urbaitel:

In your letter dated November 14, 1994, and supplemental information provided on November 22, 1994, you requested a determination of the dutiable status of a garment to be assembled in Costa Rica, then screen printed . A sample of the garment was submitted and is being returned as you requested.

You have indicated that fabric will be cut in the U.S. to pattern, then sent to Costa Rica for assembly into a finished pullover. Upon completion of this stage of the operation, the pullover will be screen printed or subject to a heat transfer printing process in Costa Rica prior to being returned to the U.S. You are questioning whether the screen printing or heat transfer printing will change the dutiable status of the assembled garment under HTS Heading 9802.00.80.

Subheading 9802.00.80, HTSUS, provides a partial duty exemption for: (a)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. (19CFR 10.16)

All three requirements of HTSUS subheading 9802.00.80 must be satisfied before a component may receive a duty allowance. However, any significant treatment whose primary purpose is the physical improvement of a component precludes the application of the exemption under HTSUS subheading 9802.00.80. Screen printing and heat transfer printing are such processes, and are therefore, not considered incidental to the assembly process. Therefore, since all three requirements of subheading 9802.00.80 have not been met, it is not applicable to the garment in question. Therefore, upon importation, the garment will be dutiable upon its full value, including the value of the United States components.

This ruling is being issued under the provisions of Section 177 of the Customs Regulations (19 C.F.R. 177).

A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise is imported. If the documents have been filed without a copy, this ruling should be brought to the attention of the Customs officer handling the transaction.


Jean F. Maguire
Area Director

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