Applicability of subheading 9802.00.80, HTSUS, to certain aluminum grilles assembled abroad

HQ 555456 September 20, 1989 CLA-2-CO:R:C 555456 RA CATEGORY: Classification TARIFF NO.: 9802.00.80, HTSUS Mr. Allen E. Smith 470 McAllen National Bank McAllen, Texas 78503 RE: Applicability of subheading 9802.00.80, HTSUS, to certain aluminum grilles assembled abroad Dear Mr. Smith: This is in response to your letter of July 24, 1989, requesting a ruling on the application of subheading 9802.00.80, Harmonized Tariff Schedule of the United States (HTSUS), to metal grilles assembled in Mexico. FACTS: Components made of aluminum in the U.S. are exported for assembly abroad into finished air supply and return grilles used in interior air distribution systems. All exported components are fully fabricated and ready for assembly except that certain parts exported in multiple lengths, such as strips, vanes, or rails, are cut to length and various slots or holes are made as part of the assembly operations. The sub-assembled items that require gasketing are painted prior to gasketing and all items are spray painted either aluminum color or white to prevent oxidation or contamination and to finish them. ISSUE: Will the operations performed in Mexico to assemble and complete the grilles qualify as valid assembly operations or as incidental thereto under the provisions of subheading 9802.00.80, HTSUS? LAW AND ANALYSIS: Subheading 9802.00.80, HTSUS, provides for an allowance in duty for the cost or value of U.S.-made components assembled abroad by the attachment of the various components to form the imported merchandise. The assembly abroad may consist of a joinder of two or more components and include operations incidental thereto. The attachment of the fabricated components of the grilles by rivets, eyelets, force fitting, crimping, adhesives, and similar means constitutes a valid assembly for purposes of the subheading. The drilling of holes, slotting, and cutting to length are essential and incidental to assembly. See Rudolph Miles v. United States 65 CCPA 32, C.A.D. 1202 (1978) and United States v. Mast Industries Inc., 69 CCPA 47, 668 F.2d 501 (1981). However, the painting of the various components or the finished products in aluminum or white colors cannot be considered as incidental to assembly as you contend. We are unable to hold otherwise at this time as this issue is now being litigated in the Court of International Trade (General Motors Corp. v. United States, No. 87-03-0047) as the result of our ruling of August 9, 1985, on this question, copy enclosed. Accordingly, those components of the grilles that are painted cannot be granted an allowance in duty under the provisions of subheading 9802.00.80, HTSUS. HOLDING: The attachment of various U.S.-made components by rivets, eyelets, force fitting, crimping, adhesives, and similar means constitutes a valid assembly and the drilling of holes, slotting, and cutting of parts to length are operations incidental to assembly. However, components which have been painted in aluminum or white are precluded from any allowance in duty under the provisions of subheading 9802.00.80, HTSUS. Sincerely, John Durant, Director Commercial Rulings Division Enclosure