Applicability of partial duty exemption of item 807.00, TSUS, to certain safety spectacles to be assembled in Korea

HQ 555020 July 11, 1988 CLA-2 CO:R:C:V 555020 DBI CATEGORY: Classification TARIFF NO.: 9802.00.80; 807.00 Mr. Richard Hirschman Hudson Optical Corporation 50 Keyland Corporation Bohemia, New York 11716 RE: Applicability of partial duty exemption of item 807.00, TSUS, to certain safety spectacles to be assembled in Korea Dear Mr. Hirschman: This is in response to your letter dated May 11, 1988, in which you request a ruling concerning the applicability of item 807.00, Tariff Schedules of the United States (TSUS), to spectacle lenses manufactured in the U.S., exported to Korea to be cut into the shape of the spectacle frame and inserted, and then returned to the U.S. FACTS: You advise that the plastic lenses are manufactured in the U.S., including all coatings and all the optics built into the lens. The lenses will be shipped to Korea where they will be cut to the shape of the spectacle frame and inserted into the frame. The finished spectacles will then be returned to the U.S. ISSUE: Whether the described safety spectacles, when returned to the U.S., will be eligible for the partial exemption from duty in item 807.00, TSUS (9802.00.80, Harmonized Tariff Schedule of the United States (HTSUS))? LAW AND ANALYSIS: Item 807.00, TSUS, applies to articles assembled abroad in whole or in part of fabricated components, the products of the U.S., with no operations performed thereon except the attachment of the components to form the imported merchandise and operations incidental thereto. An article classified under item 807.00, TSUS, is subject to duty upon the full appraised value of the imported article, less the cost or value of such products of the - 2 - U.S. Section 10.14(a), Customs Regulations (19 CFR 10.14(a)), provides that the components must be in condition ready for assembly without further fabrication at the time of their exportation from the U.S. to qualify for the exemption. Components will not lose their entitlement to the exemption by being subject to operations incidental to assembly. However, material undefined in final dimensions and shapes, which is cut into specific shapes or patterns abroad is not considered a fabricated component. In the present case, the lenses exported from the U.S. are not fabricated components in condition ready for assembly since they must be cut into various shapes to fit into frames while abroad. Therefore, the cutting to shape performed abroad cannot be considered an acceptable assembly under item 807.00, TSUS. HOLDING: On the basis of the samples and information submitted, we are of the opinion that the cutting to shape of the spectacle lenses may not be considered an acceptable assembly, and, therefore, no allowances in duty may be made under item 807.00, TSUS. Sincerely, John Durant, Director Commercial Rulings Division 1cc: CO:R:C:V:DIZZO:7/5/88 Mr. Richard Hirschman Hudson Optical Corporation 50 Keyland Corporation Bohemia, NY 11716