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NY A87315

September 26, 1996

CLA-2-65:RR:NC:5:353 A87315


TARIFF NO.: 6505.90.2060

Ms. Karen Quintana
New Wave Transport (U.S.A.), Inc.
2417 E. Carson St.
Long Beach, CA 90810

RE: The tariff classification of Headgear from the Philippines and Hong Kong.

Dear Ms. Quintana:

In your letter dated August 23, 1996, on behalf of your client H & C Headgear Inc., you requested a tariff classification ruling. No sample was submitted with your request.

In your letter you state that 100% cotton woven denim twill fabric will be shipped from the United States to the Philippines and Hong Kong. You state that in these countries the fabric will be cut sewn and assembled into headgear. You inquire whether there would an allowance in duty or as an assist for the supplied U.S. fabric upon importation of the finished headgear.

Chapter 98, Subchapter II, HTSUSA, incorporates provisions that apply to articles which are exported and then returned to the United States. Subheading 9802.00.80, HTSUSA, provides a partial duty exemption for: 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.

All three of the above-mentioned requirements must be satisfied before a component may receive a duty allowance. An article entered under subheading 9802.00.80 is subject to duty upon the full cost or value of the imported assembled article, less the cost or value of the U.S. components assembled therein, upon compliance with the documentary requirements of section 10.24, Customs Regulations (19 CFR 10.24).

The U. S. fabric shipped to the Phillippines or Hong Kong and cut and assembled into headgear does not meet the above mentioned requirements and the imported headgear made from this fabric will be subject to the full cost or value of the imported article.

The applicable subheading for the headgear will be 6505.90.2060, Harmonized Tariff Schedule of the United States (HTS), which provides for "Hats and other headgear, knitted or crocheted, or made up from lace, felt or other textile fabric, in the piece (but not in strips), whether or not lined or trimmed; hairnets of any material, whether or not lined or trimmed: Other: Of cotton, flax or both: Not knitted: Certified hand-loomed and folklore products; and headgear of cotton. The duty rate will be 7.9 percent ad valorem.

The headgear falls within textile category designation 359. Based upon international textile trade agreements products of Philippines and Hong Kong are subject to quota and the requirement of a visa.

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, please contact National Import Specialist Martin Weiss at 212-466-5881.


Roger J. Silvestri

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