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NY A86439

August 28, 1996

CLA-2-95:RR:NC:FC: 225 A86439


TARIFF NO.: 9503.80.0010; 9802.00.8065

Mr. Stephen B. Keeney
CAP Toys Inc.
26201 Richmond Road
Bedford Heights, Ohio 44146-1439

RE: The tariff classification of radio controlled vehicles from China

Dear Mr. Keeney:

In your letter dated August 1, 1996 you requested a tariff classification ruling.

A sample with descriptive literature was submitted with your inquiry. The product is called "Sky Racers" and will be imported in two different sets. The first item is a "Super Skyway Set" which will include 1 vehicle, 1 transmitter, 5 flex tracks/clamps, 1 rescue basket, 1 crane, 1 rescue hook, 1 clamp, 1 decal sheet and 150 feet of monofilament.

The second article is a "Super Skyway Set" which will include 2 vehicles, 2 transmitters, 8 flex tracks/clamps, 1 rescue basket, 1 crane, 1 rescue hook, 1 clamp, 1 decal sheet and 300 feet of monofilament.

An aerial track is created by attaching the monofilament string to specially designed clamps which affix to doors, shelves, tables, etc. Two rolling wheels found on top of the "Sky Racer" vehicle attach to the monofilament strand. Upon assembly, the hand held transmitter controls the vehicle's movement in forward or reverse along the suspended monofilament line. An appearance is created that the vehicle is flying through the air. Lights may be activated inside the vehicle for nighttime play. Each set requires several batteries which are not included.

You indicate that the monofilament string, which serves as the track for the vehicles, is manufactured in the U.S. and exported via Hong Kong to China where it is cut to length and packaged together with other components of the "Skyway" sets. It is further stated that you intend to submit a declaration of assembly, as well as a completed FCC Form 740, along with the entry documentation required at time of import.

The applicable subheading for the "Skyway Set" and "Super Skyway Set" will be 9503.80.0010, Harmonized Tariff Schedule of the United States (HTS), which provides for other toys and models, incorporating a motor, and parts and accessories thereof: toys (except models): incorporating an electric motor. The rate of duty will be free.

Regarding the U.S. origin monofilament string exported to China where it will be cut to length and packaged together with other components of the "Sky Racer" sets, subheading 9802.00.80, HTSUSA, provides a partial duty exemption for articles which are:

...assembled aboard 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.

Section 10.14(a), Customs Regulations (19 CFR 10.14(a)), provides, in part, that:

[t]he 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(b)(6), Customs Regulations (19 CFR 10.16(b)(6)), states that the cutting to length of wire, thread, tape, foil, and similar products exported in continuous length is an example of an operation incidental to the assembly process.

In this case, it appears from the information submitted that the U.S. monofilament string exported to China will be entitled to the duty exemption available under subheading 9802.00.80, HTSUSA, upon return of the assembled product. The cutting to length of the monofilament string for assembly with other components within the toy set is considered an operation incidental to the assembly process pursuant to section 10.16(b)(6), Customs Regulations.

Therefore, the instant articles are subject to duties on the full value of each imported set less the value of the U.S. fabricated monofilament string, upon compliance with the documentary requirements of section 10.24, Customs Regulations, in accordance with subheading 9802.00.8065, HTSUSA.

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 Alice J. Wong at 212-466-5538.


Roger J. Silvestri

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