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NY A85692

July 26, 1996

CLA-2-58:RR:NC:TP:350 A85692


TARIFF NO.: 5808.90.0010

Ms. Beverly A. Kargol
Wm. E. Wright
South Street
West Warren, MA 01092-0398

RE: The tariff classification of a tassel produced in either Haiti or Guatemala from yarn shipped from the U.S.A.

Dear Ms. Kargol:

In your letter dated July 12, 1996, you requested a classification ruling.

You supplied samples of the loop and wale type yarns supplied from an unspecified source country, as well as the finished tassels produced in either Guatemala or Haiti from such yarns. These yarns are presumed to be of man-made fibers. Your letter indicates that the yarns will be shipped to Haiti or Guatemala where they will be manufactured into tassels. These tassels measure about 4" in overall length and contain a small loop for hanging at the top.

You write that you were informed that upon the return of the tassels to the U.S., duty should only be paid on the cost of labor supplied in either of the two foreign countries. There is not a question of an alteration or assembly operation having taken place in either country as a substantial manufacturing operation has occurred which transformed yarn into a finished product, namely, tassels. Subheading 9802.005060 provides for articles returned to the United States after having been exported to be repaired or altered. Subheading 9802.00.80 applies to articles assembled abroad in whole or in part of fabricated components, the products of the United States, ... which were ready for assembly without any further fabrication. Neither of these two situations apply to the transaction at hand. As such the duty rate that follows is assessable upon the full value of the tassels upon their return to the United States which would include the cost of the U.S. supplied yarn, the cost of shipping same to either Haiti or Guatemala as well as the applicable labor and any other costs or charges incurred in the foreign countries. Regardless of whether the yarn is of U.S. or foreign manufacture, the result would be the same.

Accordingly, the applicable subheading for the tassels will be 5808.90.010, Harmonized Tariff Schedule of the United States (HTS), which provides for ... tassels, pom pons and similar articles, ... of cotton; of man-made fibers. The duty rate will be 7 percent ad valorem.

This merchandise falls within textile category designation 229. Based upon international textile trade agreements products of Haiti are subject to the requirement of a visa. There are currently no textile restraints from Guatemala.

The designated textile and apparel categories may be subdivided into parts. If so, visa and quota requirements applicable to the subject merchandise may be affected. Part categories are the result of international bilateral agreements which are subject to frequent renegotiations and changes. To obtain the most current information available, we suggest that you check, close to the time of shipment, the Status Report on Current Import Quotas (Restraint Levels), an internal issuance of the U.S. Customs Service, which is available for inspection at your local Customs office.

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 George Barth at 212-466-5884.


Roger J. Silvestri

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