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 > 2007 NY Rulings > NY N018313 - NY N018386 > NY N018329

Previous Ruling Next Ruling
NY N018329

November 2, 2007



TARIFF NO.: 9802.00.5060

Steven B. Zisser, Attorney at Law
Zisser Customs Law Group
Suite 114
2297 Niels Bohr Court
San Diego, California 92154

RE: The applicability of the partial duty exemption pursuant to 9802.00.50, HTSUS, to various electrical cables exported from the U.S. and processed in Mexico by sorting, label removal, cleaning, repair and repackaging.

Dear Mr. Zisser:

In your letter dated October 11, 2007, on behalf of Monster Cable Products, Inc., you requested a ruling regarding the applicability of 9802.00.50, HTSUS.

Monster Cable Products, Inc. is a manufacturer of high performance cables used for the inter-connection of audio/video components for home, car and professional use as well as for computers and computer games. The items concerned are various high performance audio/video/computer cables with attached connectors.

In the scenario presented, Monster Cable Products, Inc. receives product returns from vendors and customers. A basic inspection is undertaken, and badly damaged items are disposed of. All remaining items are packaged together in large cardboard boxes, palletized, wrapped in plastic and loaded into trailers for transport to Mexico.

In Mexico the products undergo a two-step inspection process. First the product packaging is inspected. If packaging is damaged the product is removed from package. If the packaging is in good condition, a visual inspection of the product is made through the package. If the product and everything inside looks fine then the package is wiped clean with a cotton towel and cleaning solution. All retail stickers and price tags are removed, as well as any sticker residue. If the product looks damaged the product is removed from its packaging.

The second inspection process deals with those products that needed to be removed from their packaging. These cables are inspected for correctable cosmetic defects. If detected, visible corrosion is removed with cleaning solvents, and hand brushing. Rub marks, adhesive residues, dirt, grime or dust is removed using cotton towels and cleaning solutions. Products with non-correctable cosmetic defects, which include scratched jacket or connector, discoloration or fading, are sent for further work (repair).

The correctable cosmetic processes include wiping the product clean and removing corrosion, grime, dust, finger prints etc, using the following:

Cotton towels – used to wipe cables clean Alcohol cleaning preparations – used with towels to remove stickers Vacuum – to clean dust, grime and other debris from connectors Air Blower – to clean dust, grime and other debris from connectors Polishing articles – polishing of connectors to obtain their original luster, using polishing meal agents as well as cotton towels.

Items that have physical damage (exposed conductor, loose connector, bent/broken/missing pins or connectors, bent/broken ground fittings, corroded copper, etc) that interferes with the items function will be repaired if possible. Any cable that can be repaired will under go a replacement and soldering process of their connectors and/or terminals. Any cable that cannot be repaired will be scrapped.

Depending on the physical defect, the following are examples of the actions to be taken:

Exposed conductor – conductor replaced using hand tools and soldering equipment Loose Connector – soldering equipment and hand tools Bent, broken or missing pins/connectors – in most cases item will be scrapped Ground fitting bent/broken – soldering equipment and hand tools Corroded copper – Anti-corrosion solvents Permanent bend in cable or connector – in most cases item will be scrapped

Once the above operations are complete an electrical continuity test is performed and the items are repackaged for sale. Once completed the goods are shipped back to the U.S.

Under HTSUS subheading 9802.00.5060 articles exported from and returned to the U.S., after having been advanced in value or improved in condition by repairs or alterations outside the U.S., may qualify for a duty exemption, provided the foreign operation does not destroy the identity of the exported article or create a new or commercially different article through a process of manufacture.

In their condition upon exportation from the U.S. the audio/visual/computer cables in question have the essential character of a complete audio/visual/computer cable. Neither the cleaning, refurbishing, repackaging nor repair operation, conducted in Mexico, changes the identity or character of these cables. Additionally, no new article of commerce will be created.

It is our opinion, based on the information submitted, that the Mexican operations enumerated above, (cleaning, repackaging, repair and refurbishing) are in fact repairs and/or alterations within the meaning of subheading 9802.00.5060, HTSUS. Provided the documentary requirements of Section 181.64, Customs Regulations (19 C.F.R. 181.64) are satisfied, Monster Cable Products, Inc.’s audio/visual/computer cables will qualify for the full duty exemption under HTSUS subheading 9802.00.5060 when returned to the United States.

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 Steve Pollichino at 646-733-3008.


Robert B. Swierupski

Previous Ruling Next Ruling

See also: