United States International Trade Commision Rulings And Harmonized Tariff Schedule
faqs.org  Rulings By Number  Rulings By Category  Tariff Numbers
faqs.org > Rulings and Tariffs Home > Rulings By Number > 2003 NY Rulings > NY I89073 - NY I89121 > NY I89121

Previous Ruling Next Ruling
NY I89121

December 24, 2002

CLA-2-63:RR:NC:N3:351 I89121


TARIFF NO.: 6307.90.9889

Ms. Dianne Fassio
Purchasing Dept.
Commercial Sewing
65 Grant St.
Torrington, CT 06790

RE: The tariff classification of snowmobile cover from China.

Dear Ms. Fassio:

In your letter dated Dec. 5, 2002, you requested a ruling on tariff classification. This is a follow-up to our ruling I88271, which ruled on the same merchandise. In the current letter, you ask about the applicability of subheading 9802.00.50, Harmonized Tariff Schedule of the United States (HTS), for U.S. material exported to China. Subheading 9802.00.50, HTS, provides for the assessment of duty on only the value of repairs or alterations performed on articles returned to the U.S. after having been exported for that purpose. We ruled that subheading 9802.00.50, HTS, did not apply.

With your earlier ruling request, you submitted a sample of a snowmobile cover, part number 2874205. Each cover is designed to fit the specifications of a specific model snowmobile. Each will be produced with the logo of the specific OEM dealer.

You stated that it is made of 100% cotton duck fabric, which is purchased in both the United States and India. The fabric is dyed and finished (you did not define “finished”) in the United States and is then sent to China where the covers are manufactured.

Your current letter states that you intend to send to China pieces of the fabric cut to the specific OEM pattern to be assembled into the finished cover. You have submitted a pattern layout showing the shape of each piece of a typical pattern. You ask if this would qualify as an assist. The term “assist” is defined as that which is supplied directly or indirectly by the buyer of imported merchandise, free of charge or at reduced cost, for use in connection with the sale of the merchandise for export to the U.S., under 19 U.S.C. 1401a(h)(1)(A). There are four categories of assists, but you ask about the first, encompassing “materials, components, parts and similar items incorporated in the imported merchandise.” The value of an assist must be added to the processing costs before the ad valorem rate of duty is applied, pursuant to Section 402, TA. Additionally, the value of any assist includes transportation costs to the place of production. See Section 152.103(d), Customs Regulations (19 C.F.R. §152.103(d)). If the cut pieces are the product of India, as was the fabric in your earlier letter, they would be assists.

However, subheading 9802.00.80 may apply. Although you did not request such consideration, subheading 9802.00.80 provides for partial duty exemption of “Articles, except goods of heading 9802.00.90, assembled abroad in whole or in part of fabricated components, the product of the United States, which were exported in condition ready for assembly without further fabrication, have not lost their physical identity in such articles by change in form, shape or otherwise, and 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 requirements of subheading 9802.00.80, HTS, must be satisfied before a component may receive a duty allowance. In your earlier letter, you stated that the fabric may be of U.S. origin; if this is the case, or if fabric of Indian origin is cut to shape in the U.S., this provision may apply. An article entered under this tariff provision is subject to a duty upon the full value of the imported assembled article, less the cost or value of the U.S. components assembled therein, provided there has been compliance with the documentation requirements of section 10.24, Customs Regulation (19 C.F.R. §10.24).

The applicable subheading for the snowmobile covers will be 6307.90.9889, HTS, which provides for other made up textile articles, other. The general rate of duty in 2003 will be seven percent ad valorem.

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 Mitchel Bayer at 646-733-3102.


Robert B. Swierupski

Previous Ruling Next Ruling

See also: