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NY L80696

November 8, 2004

CLA-2-63:RR:NC:N3:351 L80696


TARIFF NO.: 6307.90.9889

Mr. Bruce Schiller
Exel Global Logistics Inc.
10205 N.W. 19th St.
Suite 101
Miami, FL 33172

RE: The tariff classification of basket liners from Honduras.

Dear Mr. Schiller:

In your letter dated Nov. 3, 2004, you requested a ruling on behalf of New Holland Lingerie, of New Holland, Penn., on tariff classification of textile liners for baskets.

You submitted two samples of liners. They are composed of fabric panels sewn together to form the shape of the baskets into which they are intended to fit. You state that the fabric, whether 100% cotton or 90% cotton/10% rayon, will be produced in the United States, as will any fabric trim components, using yarns also produced in the U.S. The components will be sent to Honduras for assembly (sewing, pressing, and packaging). No baskets will be included in the importation of these liners.

The applicable subheading for this product will be 6307.90.9889, Harmonized Tariff Schedule of the United States (HTS), which provides for other made up textile articles, other. The general rate of duty will be seven percent ad valorem.

You inquire if any “special tariff treatment” applies in this case. Heading 9802, HTS, 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 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. Any significant process, operation, or treatment whose primary purpose is the fabrication, completion, physical or chemical improvement of a component precludes the application of the exemption under subheading 9802.00.80, HTSUS, to that component.

It appears that the imported basket liners meet the above requirements, and are eligible for a duty allowance under heading 9802, HTS, upon their return to the United States. An article entered under this tariff provision is subject to duty upon the full value of the assembled article, less the cost or value of such U.S. components, upon compliance with the documentary requirements of section 10.24, Customs Regulations (19 C.F.R. 10.24).

Your samples will be returned as requested.

This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R.).

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

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