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NY E80325

April 15, 1999

CLA-2-70:RR:NC:2:226 E80325


TARIFF NO.: 7013.99.5000, 9802.00.80

Mr. Donald A. Keller
O’Neill & Whitaker, Inc.
1809 Baltimore Ave.
Kansas City, Missouri 64108

RE: The tariff classification of a decorative glass article from China

Dear Mr. Keller:

In your letter dated April 5, 1999, on behalf of your client, Hallmark Cards, you requested a tariff classification ruling. A representative sample of the item was submitted and will be returned to you as requested.

The product (item #1495LAS4207) is a decorative glass article consisting of two 8” X 8” clear glass panels. The panels are joined together by transparent tape and inserted into a clear “polyresin” base. A “paper-laser-cut-out-design” of two cats is sandwiched between the glass panels. You indicated that an inscription “My Favorite Spot Is Next To You” will be silk-screen printed on the front glass panel. The unit value for this item will be $2.00.

In your presentation, you suggest that the article should be classified under subheading 4823.90.8500, Harmonized Tariff Schedule of the United States (HTS), which provides for other articles of paper or paper-board. We have concluded that neither the paper component nor the glass component imparts the essential character of this composite article. With reference to General Rule of Interpretation 3(c), HTS, the classification of the composite good will be governed by the subheading that appears last in numerical order among those which equally merit consideration. In this instance, the competing subheadings are 4823.90.8500 and 7013.99.5000.

The applicable subheading for the decorative glass article will be 7013.99.5000, HTS, which provides for glassware of a kind used for table, kitchen, toilet, office, indoor decoration or similar purposes:other glassware: other: other: valued over $0.30 but not over $3.00 each. The rate of duty will be 30 percent ad valorem.

Your submission raises the question of whether this article would qualify under subheading 9802.00.80. You stated in your letter that all of the materials used to manufacture this product are of Chinese origin with the exception of the “paper-laser-cut-out-design” which is of U.S. origin. You further stated that the cut-out-design is sent abroad to the manufacturer in China free of cost to be assembled into the finished product.

Subheading 9802.00.80, HTSUS, provides a partial duty exemption for articles assembled abroad in whole or in part of fabricated components of U.S. origin with no operations performed thereon except the joining of the components and operations incidental thereto. The U.S. components must be exported in condition ready for assembly without further fabrication, and cannot lose their physical identity in the assembled article by change in form, shape or otherwise. Duty is assessed on the full appraised value of the imported merchandise less the cost or value of the U.S. made components, upon compliance with the documentation requirements of section 10.24, Customs Regulations (19 C.F.R. 10.24).

Based on the information submitted, it is our opinion that the operations performed in China on the glass article constitute a proper assembly operation under the provisions of subheading 9802.00.80, HTSUS. Upon compliance with the documentation requirements of 19 C.F.R. 10.24, an allowance in duty for the cost or value off the U.S. component may be granted. It should be noted that even though the “paper-laser-cut-out-design” is furnished free of charge to the manufacturer in China, its cost or value must be added to the appraised/entered value of the imported product, before it can be “deducted out” for 9802 purposes. The information substantiating the application of subheading 9802.00.80, HTSUS, must be submitted at the time of entry.

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 Jacob Bunin at 212-637-7074.


Robert B. Swierupski

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