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NY A86319

August 1, 1996

CLA-2-64:RR:NC:TP:346 A86319


TARIFF NO.: 9802.00.8040; 6404.19.35

Ms. Janet S. Cool
Daniel Green Company
Dolgeville, NY 13329-1398

RE: The Classification, User Fees and Country of Origin Marking of Footwear from the Dominican Republic; CBI-2; CR 10.24

Dear Ms. Cool:

In your letter dated July 25, 1996, you requested a tariff classification ruling for a sample of a woman's terry cloth, front velcro-type closure slipper, identified as Style # 20001. This slipper, you state, will be assembled in the Dominican Republic from component parts that are of 100% U.S. origin. We understand your claim to be that all the major components were produced as sheets, rolls or molded pieces in the U.S. as well as being cut here, if applicable. The assembly of the various slipper components will be accomplished by stitching and gluing processes. We assume from your description that you claim that the sewing thread and the glues will also be of U.S. origin. All of the component parts used in making this slipper will be shipped directly from the USA to the Dominican Republic without entering the commerce of any other country.

You stated that you have provided detailed breakdowns for the sample, but none was found in your submission.

Although you state in your letter that it is only "partially assembled footwear", the sample is clearly a usable slipper as is. We do not understand your point at all.

This item will be classified in subheading 9802.00.8040, Harmonized Tariff Schedule of the United States (HTS), free of duty, as articles, not assembled in Mexico, that were assembled abroad of fabricated components, the products of the United States, which were exported in condition ready for assembly without further fabrication, which have not lost their physical identity, and which have not been advanced in value or improved
in condition abroad except by being assembled and except by operations incidental to the assembly process, and which meet the conditions of U.S. note 2-b to Subchapter II of Chapter 98. We assume that you will be able to supply the port of entry with whatever documents or other evidence it deems necessary to confirm that those conditions have, in fact, been met. CR 10.24 provides detailed instructions for documenting items classified in HTS 9802.00.80, but several elements, such as the very detailed cost information required, make little sense for items in HTS 9802.00.8040 since they are completely free of duty. We suggest you discuss the documentation required with the Customs personnel in each port in which you will make entry and/or the U.S. Customs Andean-CBI Help Desk, Miami International Airport, POB 52-3215, Miami, FL 33125-3215. The Help Desk`s telephone number is 305-869-2804 or 2815.

Per Statistical Note 2 to Subchapter II, you must split out on the Customs entry, "the dutiable value, i.e., the total value of the articles less the value of the U.S. fabricated components" and assign to it the classification that would ordinarily apply in the absence of US note 2-b to that Subchapter. Note that in this context, there is never any duty actually payable on this "dutiable value".

You state that the approximate value of this item is $5.85 per pair. This is an amazingly high price for such a simple item so you should check your basic cost data before submitting to Customs the value information indicated above.

The classification that would ordinarily apply to this item is 6404.19.35, Harmonized Tariff Schedule of the United States (HTS), which provides for footwear, in which the upper's external surface is predominately textile materials (note that an accessory or reinforcement on top of another material is not part of the upper's external surface but the material hidden underneath is); in which the outer sole's external surface is predominately rubber and/or plastics; which is not "athletic" footwear; which is not designed to be a protection against water, oil, or cold or inclement weather;in which the upper's external surface is still 50% or less leather even after every leather accessory and reinforcement present is included as part of the upper's external surface; which, inter alia, has open toes; and which is 10% or more by weight of rubber and/or plastics.

Items classified in 9802.00.8040 do not need to have any country of origin marking when imported into the U.S.

Merchandise Processing Fees described in 19 CFR 24.23 will not apply to this merchandise.

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 James Sheridan at 212-466-5889.


Roger J. Silvestri

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