Request for Ruling Regarding Dutiability of Certain Garment Label Printers.

HQ 545570 April 21, 1994 VAL CO:R:C:V 545570 er CATEGORY: Valuation Mr. Rick Byrd Production Planner Dowling Textile Manufacturing Co. P.O.Box 598, 615 Macon Road McDonough, Georgia 30253 RE: Request for Ruling Regarding Dutiability of Certain Garment Label Printers. Dear Mr. Byrd: This is in response to your letter dated February 15, 1994, in which you request a ruling regarding whether certain printers used to create garment labels would constitute an assist. A sample label was included with your inquiry. FACTS: The facts presented in your request for a ruling are brief. You are presumably in the business of importing textile goods. You plan to send a printer to Jamaica which will be used to print garment labels to be incorporated in the imported merchandise. ISSUE: Whether the printer is an assist? LAW AND ANALYSIS: Under section 402(h)(1)(A) of the Trade Agreements Act of 1930, as amended, ("TAA"), the term "assist" means certain enumerated items if supplied directly or indirectly, and free of charge or at reduced cost, by the buyer of the imported merchandise for use in connection with the production or the sale for export to the United States of the merchandise. Included among the listed items are tools and similar items used in the production of the merchandise. In TAA #4, dated September 4, 1980, Customs held that general purpose equipment, such as sewing machines, ovens, drill presses, etc., which was actually used in the production of the merchandise was dutiable as an assist under section 402(h)(1)(A)(ii) of the TAA. Because the subject printer is actually used in production to mark the labels, which comprise a part of the imported merchandise, it would constitute an assist within the meaning of section 402(h)(A)(1)(ii) of the TAA, if you furnish it free of charge or at a reduced cost. HOLDING: Printers provided by the buyer, free of charge or at a reduced cost, for use in the overseas production of garment labels to be incorporated into imported textile goods, are dutiable as assists. Sincerely, John Durant, Director Commercial Rulings Division