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NY K85965

May 25, 2004
CLA-2-62:RR:NC:TA:357 K85965


TARIFF NO.: 6202.91.2011; 9802.00.8068

Messrs. Nicholas D’Andrea and Bill Julich Delmar International
147-55 175th St.
Jamaica, NY 11434

RE: The tariff classification of women’s wool jackets from Poland; partial duty exemption for fur collars

Dear Messrs. D’Andrea and Julich:

In your letter dated May 5, 2004, on behalf of Polaris Handelsges of Vienna, Austria, you requested a classification ruling. A sample was submitted and is being returned as you requested.

The item in question, style IMG0463, is a women’s jacket made from a woven wool fabric with a fur collar. The jacket is approximately twenty-two inches in length and has a full front opening with a right-over-left button closure. It has long hemmed sleeves, on-seam front pockets, a buttoned tab at the neck and a woven lining.

The applicable subheading for style IMG0463 will be 6202.91.2011, Harmonized Tariff Schedule of the United States (HTS), which provides for women’s anoraks (including ski-jackets), windbreakers and similar articles, of wool or fine animal hair. The duty rate will be 36 cents/kilo plus 16.3 percent ad valorem.

The furskins used to manufacture the collar of this jacket are of foreign origin and are imported into the United States for processing and then exported for assembly to the jacket. You asked whether these would be eligible for a duty allowance under Heading 9802, HTS.

The processing of the furskins (tails) in the United States includes wetting, stretching, cutting, sewing, taping, closing and ironing. The skins may also be dyed or tanned. They are then exported to Poland where they will be sewn onto the garments with no further processing performed in Poland.

Subheading 9802.00.80, HTSUS, provides a partial duty exemption for:

[a]rticles 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 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, HTSUS, must be satisfied before a component may receive a duty allowance. An article entered under this tariff provision is subject to duty upon the full value of the imported assembled article, less the cost or value of qualifying U.S. components assembled therein, provided there has been compliance with the documentation requirements of 19 CFR 10.24.

Section 10.12(e), Customs Regulations (19 CFR 10.12(e)), provides generally that an article wholly or partially of foreign components or materials, may be a "product of the United States" if such components or materials are "substantially transformed" by a process of manufacture into a new and different article, or are merged into a new and different article. Section 10.14(b) provides that a "substantial transformation" occurs when, as a result of manufacturing processes, a new and different article emerges, having a distinctive name, character or use, which is different than that originally possessed by the article or material before being subject to the manufacturing process. If the manufacturing or combining process is merely a minor one which leaves the identity of the article intact, a substantial transformation has not occurred. See, Belcrest Linens v. United States, 573 F. Supp. 1149 (CIT 1983), 741 F. 2d 1368 (1984).

In this case the processing described as taking place in the United States results in a substantial transformation of the furskins, and the assembly of the collars to the jackets is an acceptable assembly under HTS 9802. As such, they are eligible for a duty allowance under HTS 9802.00.8068, upon compliance with the documentary requirements of section 10.24, Customs Regulations (19 CFR 10.24).

This jacket falls within textile category designation 435. Based upon international textile trade agreements products of Poland are subject to quota and the requirement of a visa.

The designated textile and apparel categories and their quota and visa status are the result of international agreements that are subject to frequent renegotiations and changes. To obtain the most current information, we suggest that you check, close to the time of shipment, the Textile Status Report for Absolute Quotas, which is available at our Web site at www.cbp.gov. In addition, the designated textile and apparel categories may be subdivided into parts. If so, visa and quota requirements applicable to the subject merchandise may be affected and should also be verified at the time of shipment.

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 William Raftery at 646-733-3047.


Robert B. Swierupski

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