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NY G81811

September 29, 2000

CLA-2-84:RR:NC:1:102 G81811


TARIFF NO.: 8482.50.0000, 9802.00.8066

Ms. Mariana Barbulescu
Dext Services and Solutions
9126 S. Roadrunner Street
Highlands Ranch, Colorado 80129

RE: The tariff classification of a linear cylindrical roller bearing assembled abroad from U.S. components.

Dear Ms. Barbulescu:

In your letter dated September 5, 2000 you requested a tariff classification ruling on behalf of Dext Services and Solutions.

The item in question is a linear bearing assembly comprised of cylindrical rollers retained by a nylon cage. Samples, technical drawings and descriptive information were submitted.

You indicate that your company will assemble and lubricate the linear bearing abroad from components acquired from vendors located in the United States. The assembled bearing will then be exported to the United States for sale to your customer. Based on the information submitted, the steel cylindrical rollers, nylon cage and Molycote grease used in the assembly process are presumed to be products of the United States.

The applicable subheading for the linear bearing assembly will be 8482.50.0000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for other cylindrical roller bearings. The rate of duty will be 5.8 percent ad valorem.

A partial duty exemption is applicable for certain components of United States origin assembled in another country. Subheading 9802.00.80, HTSUS, provides 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 except by being assembled or except by operations incidental to the assembly process, such as cleaning, lubricating and painting.

All three requirements of subheading 9802.00.80, HTSUS, must be satisfied before a component may receive a duty allowance. The component must be in condition ready for assembly without further fabrication at the time of its exportation from the United States to qualify for the exemption. Operations of a minor nature that are incidental to assembly are not considered further fabrication.

The cylindrical rollers and nylon cage meet the requirements of subheading 9802.00.80, HTSUS. They are in condition ready for assembly prior to being exported from the United States and do not lose their physical identity after being assembled. They are not advanced in value except by operations incidental to the assembly process. A partial duty exemption will apply for the rollers and cages.

The lubricating material, however, does not meet the requirements of subheading 9802.00.80, HTSUS. The Molycote grease is not a fabricated component and will lose its identity in the assembly process. Therefore, a partial duty exemption will not apply for the grease.

Subheading 9802.00.80, HTSUS, provides for a duty upon the full value of the imported article, less the cost or value of the fabricated components of the United States that meet the requirements of 9802.00.80.

If the U.S. materials are provided free or at a reduced cost to you, the foreign assembler, the materials constitute an assist as defined in Part 152 of the Customs Regulations (19 C.F.R. §152.102). Under Part 152 of the Customs Regulations, to the extent that the value of the assist is not otherwise included in the price actually paid or payable for the merchandise, the value of the assist must be added to the price paid or payable for the imported merchandise. The value of the assist includes any transportation costs to the place of production or assembly.

Based on the information you have provided, the subject linear bearing assembly may be classified with a partial duty exemption. An allowance in duty is applicable under subheading 9802.00.8066, HTSUS, for the cylindrical rollers and the nylon cage. From the full value of the imported bearing assembly, a deduction may be made for the cost or value of the rollers and cage. The rate of duty applied is the rate applicable to bearings classified in subheading 8482.50.0000, which is 5.8 percent ad valorem.

Certain documents (a Declaration by the Assembler and an Endorsement by the Importer) must be filed at the time of entry when claiming an allowance under subheading 9802.00.80, HTSUS, as required by the Customs Regulations (19 C.F.R. §10.24).

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.


Robert B. Swierupski

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