The tariff classification and eligibility for duty-freetreatment under the GSP of certain surgical instruments from Pakistan

NY 813021 August 28, 1995 CLA-2-90:S:N:N3:119 813021 CATEGORY: Classification TARIFF NO.: 9018.90.8000 Mr. Jay Jamner Jay Jamner Surgical Instruments, Inc. 9 Skyline Drive Hawthorne, NY 10532 RE: The tariff classification and eligibility for duty-free treatment under the GSP of certain surgical instruments from Pakistan Dear Mr. Jamner: In your letter dated July 25, 1995 you requested a ruling on the tariff classification and eligibility for duty-free treatment under the Generalized System of Preferences (GSP) of certain surgical instruments. The articles to be imported are finished surgical instruments manufactured in Pakistan from raw forging blades of German origin. You have submitted seven samples to illustrate the various stages of the manufacturing process that takes place in Pakistan from raw forgings to a finished Jarit Vanguard Crile forceps. Based on your letter, the manufacturing process can be described briefly as follows. Serrations are milled into the jaw and ratchet bar of each blade. The male and female sections of the box lock are milled. The two blades are joined by inserting the male section of the box lock into the female. There follow a number of steps which include filing, grinding, heat treating, riveting, polishing, electro-polishing, and "passivation". Based on the above information, the manufacturing process in Pakistan constitutes a substantial transformation and we would consider the forceps to be a product of Pakistan. However since the forgings do not undergo a double substantial transformation (i.e. no intermediate article of commerce is created), for the purpose of the GSP their value cannot be included in the 35 percent value-content requirement. Your letter indicates that the direct and indirect manufacturing costs in Pakistan would be well over 35 percent of the appraised value of the imported surgical instruments. The applicable subheading for the surgical forceps will be 9018.90.8000, Harmonized Tariff Schedule of the United States (HTS), which provides for instruments and appliances used in medical, surgical, dental or veterinary sciences... parts and accessories thereof... other. The duty rate will be 6.3 percent. Articles classifiable under subheading 9018.90.8000, HTS, which are products of Pakistan are entitled to duty free treatment under the Generalized System of Preferences (GSP) upon compliance with all applicable regulations including the 35 percent value-content requirement. This ruling is being issued under the provisions of Section 177 of the Customs Regulations (19 C.F.R. 177). A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise is imported. If the documents have been filed without a copy, this ruling should be brought to the attention of the Customs officer handling the transaction. Sincerely, Jean F. Maguire Area Director New York Seaport