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NY C81842

December 4, 1997

CLA-2-64:RR:NC:TA:346 C81842


TARIFF NO.: 9802.00.8040 ; 6406.10.6500

Mr. David Loeser Jr.
Chase, Leavitt & Co. Inc.
PO Box 589
Portland, ME 04112

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

Dear Mr. Loeser:

In your letter dated November 11, 1997, on behalf of Sebago Inc., you requested a tariff classification ruling.

The items in question are three styles of moccasin type shoe uppers, identified as Style 701-67, 703-67, and 7000-67. These uppers, you state, consist of leather of non-U.S. origin, which is first cut, stitched and manufactured, in the U.S.A., into semi-complete partial uppers with counter pockets, facings and individually fit, ready to attach vamp plugs. Subsequently, the leather upper component parts, along with pre-shaped, paperboard heel counter stiffeners, are sent to the Dominican Republic, where the assembly of these various upper components will be accomplished by the stitching in of the leather vamp plugs and the gluing in of the heel stiffeners. You indicate in your letter that the sewing thread, the glue and the "counters" will be entirely of U.S. origin. Furthermore, you state that all of the component parts used in making these uppers will be shipped directly from the USA to the Dominican Republic without entering the commerce of any other country.

The three sample moccasin style uppers you have provided all have leather external surfaces, glued in paperboard heel stiffeners and completely open underfoot areas that extend about 4 inches forward from under the heel, leaving only the front half of their bottoms covered. The only apparent differences these three uppers seem to exhibit are accountable to their varying sizes and topline heights at the ankle openings.

Therefore, these three uppers will all 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 costing 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 may 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".

The classification that would ordinarily apply to these three uppers is 6406.10.6500, Harmonized Tariff Schedule of the United States (HTS), which provides for shoe uppers, which are less than formed uppers with insoles which would cover all or most of the bottom of the wearer's foot, and in which the upper's external surface is predominately leather (note that an accessory or reinforcement stitched on top of another material is not part of the upper's external surface, but the material hidden underneath is).

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.


Robert B. Swierupski

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