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June 9, 1999

CLA-2-84:RR:NC:1:102 E81407

CATEGORY: CLASSIFICATION

TARIFF NO.: 8482.10.5044, 9801.00.1045

Mr. Craig M. Schau
Emery Customs Brokers
6940A Engle Road
Middleburg Heights, OH 44130

RE: The tariff classification of a radial ball bearing from Canada

Dear Mr. Schau:

In your letter dated April 27,1999 you requested a tariff classification ruling on behalf of your client Boeing McDonnell Douglas, Canada.

The item in question is a ball bearing manufactured in the United States by Miniature Precision Bearing. The manufacturerÂ’s part number is ACMKP8A. Descriptive information and a sample were submitted.

In your request you describe the bearing as a radial ball bearing with an integral shaft, having an outside diameter of 20.638 mm. However, examination of the sample reveals that bearing features an extended inner race, not an integral shaft, a single row of rolling elements and an outer race which is approximately 28.5 mm at its outer diameter.

You explain that the subject bearing originates in the United States, but is modified by Boeing Toronto. The modification performed by Boeing Toronto consists of removing a seal from one side of the bearing, marking the seal to reflect BoeingÂ’s part number, ARH7013-505, and then re-installing the seal. You state that the process does not advance the value or improve the condition of the product.

You inquire as to the classification of the modified bearing and applicability of the special classification provisions of heading 9801 and heading 9802 of the Harmonized Tariff Schedule of the United States (HTSUS).

The applicable subheading for the modified bearing will be 8482.10.5044, HTSUS, which provides for radial ball bearings, single row, having an outside diameter of 9 mm and over, but not over 30 mm. The general rate of duty will be 9 percent ad valorem.

Regarding the applicability of heading 9802, HTSUS, we note that the U.S. bearing modified by Boeing Toronto was purchased from a Canadian distributer, who presumably imported the bearing into Canada in the normal course of trade. Heading 9802, HTSUS, provides a partial duty exemption for articles that are returned after having been exported to be advanced in value or improved in condition by means of repairs or alterations. Because the U.S. bearing was not exported from the U.S. for the purpose of being advanced in value or improved in condition, the provisions of HTSUS heading 9802 are not applicable to the modified bearing.

Subheading 9801.00.10, HTSUS, provides for the free entry of products of the U.S. that have been exported and returned without having been advanced in value or improved in condition by any process of manufacture or other means while abroad. While operations which either advance the value or improve the condition of the exported product render it ineligible for duty?free entry upon return to the U.S., some change in the condition of the product while it is abroad is permissible.

We find that the change in marking resulting from the modification performed in Canada does not advance the value or improve the condition of the U.S. bearing. Provided the documentary requirements of section 10.1, Customs Regulations (19 CFR 10.1), are met, the modified bearing will be eligible for the duty free provision of subheading 9801.00.1045, HTSUS.

This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 CFR 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 Kenneth T. Brock at 212-637-7026.

Sincerely,

Robert B. Swierupski
Director,

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