The tariff classification of helicopter transmissions from Korea

NY E84078 July 19, 1999 CLA-2-88:RR:NC:MM:106 E84078 CATEGORY: Classification TARIFF NO.: 8803.30.0030 Mr. Harold Stewart The I.C.E. Co., Inc. P.O. Box 610583 DFW Airport, TX 75261-0583 RE: The tariff classification of helicopter transmissions from Korea Dear Mr. Stewart: In your letter dated June 25, 1999, on behalf of Bell Helicopter Textron, Inc., you requested a tariff classification ruling. You state that certain U.S.-made helicopter transmissions are removed from complete helicopters exported abroad and then overhauled in Korea, using U.S.-manufactured parts in the process. After being overhauled, the transmissions are returned to the United States for testing and certification by the FAA. Subsequently, the transmissions are returned to Korea and reassembled to the original helicopter. You ask whether these transmissions may be entered as American Goods Returned. Subheading 9801.00.10, Harmonized Tariff Schedule of the United States (HTS), provides for the free entry of products of the U.S. that have been exported and returned without having been advanced in value or improved in condition by any process of manufacture or other means while abroad, provided the documentary requirements of Section 10.1, Customs Regulations (19 C.F.R. §10.1), are met. While some change in the condition of the product while it is abroad is permissible, operations which either advance the value or improve the condition of the exported product render it ineligible for duty-free entry upon return to the U.S. In determining whether an advancement in value or improvement in condition exists at the time of importation, the overall value and condition of the article at the time it was exported from the U.S. shall be compared with its overall value and condition at the time of return to the U.S. Since you have not provided us with this information, we cannot make any determination at this time as to the applicabilty of subheading 9801.00.10, HTS. For information purposes only, if you can demonstrate that the transmissions have been restored in Korea to the condition in which they were originally exported, the transmissions will probably qualify for the duty-free treatment accorded under subheading 9801.00.10, HTS. At this time, however, we can provide a classification of these transmissions in the international portion of the HTS, as below. The applicable subheading for the overhauled helicopter transmissions will be 8803.30.0030, HTS, which provides for other parts of helicopters for use in civil aircraft. The rate of duty will be free. 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 Patrick J. Wholey at 212-637-7036. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division