The tariff applicability of heading 9802 for "Sensormatic" tags assembled to CD trays and DVD boxes in China.

NY E81437 May 20, 1999 CLA-2-39:RR:NC:SP:221 E81437 CATEGORY: Classification TARIFF NO.: 9802.00.8065 Ms. Cecilia Castellanos Western Overseas Corporation P.O. Box 90099 Long Beach, CA 90809-0099 RE: The tariff applicability of heading 9802 for “Sensormatic” tags assembled to CD trays and DVD boxes in China. Dear Ms. Castellanos: In your letter dated April 26, 1999, on behalf of Ponica Industrial Co., Ltd., you requested a tariff classification ruling. A tagged sample tray and box were provided with your letter. Ponica Industrial Co. imports plastic CD trays and DVD boxes which it sells to recording label companies. These companies have requested that Ponica apply security tagging on the trays and boxes. The “Sensormatic” security tagging is manufactured in the United States. Ponica purchases the tags and ships them to China, where they are applied to the trays and boxes by means of adhesive. When the trays and boxes are imported, the tags are clearly visible. You have inquired about an exemption of duty for goods that contain components of American origin that have been assembled abroad. Subheading 9802.00.8065, Harmonized Tariff Schedule of the United States (HTS), provides for a partial duty exemption for articles assembled abroad in whole or in part of fabricated components, the product of the United States, which (a) were exported in condition ready for assembly without further fabrication, (b) have not lost their physical identity in such articles by change in form, shape or otherwise, and (c) have not been advanced in value or improved in condition abroad except by being assembled and except by operations incidental to the assembly process such as cleaning, lubricating and painting.  The assembly of the tags to the trays and boxes meets the three criteria listed above. Therefore, the plastic trays and boxes are eligible for a partial duty exemption under subheading 9802.00.8065, HTS. The trays and boxes are dutiable upon the full value of the imported article, less the cost or value of the United States origin security tags. 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 Joan Mazzola at 212-637-7034. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division