Eligibility of caps for partial duty exemption under subheading 9802.00.50, HTSUS.
Issued June 13, 2001 by U.S. Customs and Border Protection.
Tariff classification
HTS codes: 9802.00.50
Headings: 9802
Product description
The submitted samples are two baseball-style caps constructed of fabric. The caps feature a front peak, and six-panel vented crown with an adjustable self-fabric strap at the rear. The caps are classifiable under heading 6505, HTSUS. The caps are manufactured in China and imported into the United States. The caps are then shipped to Canada, where the caps are laundered, or the front of the crown will be embroidered or affixed with a metal emblem. The caps will then be reimported into the United States. You request a determination regarding the eligibility for treatment under subheading 9802.00.50, HTSUS. Subheading 9802.00.50, HTSUS, provides a partial or complete duty exemption for articles exported from and returned to the U.S. after having been advanced in value or improved in condition by repairs or alterations, provided the documentary requirements of section 181.64, Customs Regulations (19 C.F.R. §181.64), are satisfied. Section 181.64, which implements Article 307 of NAFTA, provides that goods returned after having been repaired or altered in Canada may qualify for complete or partial duty free treatment, provided that the requirements of this section are met. However, entitlement to this tariff treatment is precluded in circumstances where the operations performed abroad destroy the identity of the exported articles or create new or commercially different articles through a process of manufacture. Subheading 9802.00.50, HTSUS, treatment is also precluded where the exported articles are incomplete for their intended use and the foreign processing operation is a necessary step in the preparation or manufacture of finished articles. In this instance, the affixing of the metal emblem to the crown constitutes an “alteration” within the meaning of subheading 9802.00.50, HTSUS. These caps are entitled to the special tariff treatment under that provision, provided the documentation requirements of 19 CFR 181.64 are met. The embroidering of the caps is more than an “
Full text
NY H80779 June 13, 2001 CLA-2-98:RR:NC:3:353 H80779 CATEGORY: Classification TARIFF NO.: 9802.00.50 Mr. Robert F. Domey Fritz Companies, Inc. 100 Walnut Street, Door 20 P.O. Box 2874 Champlain, NY 12919 RE: Eligibility of caps for partial duty exemption under subheading 9802.00.50, HTSUS. Dear Mr. Domey: In your letter dated May 16, 2001, on behalf of Fersten Worldwide, you requested a tariff classification ruling. The submitted samples are two baseball-style caps constructed of fabric. The caps feature a front peak, and six-panel vented crown with an adjustable self-fabric strap at the rear. The caps are classifiable under heading 6505, HTSUS. The caps are manufactured in China and imported into the United States. The caps are then shipped to Canada, where the caps are laundered, or the front of the crown will be embroidered or affixed with a metal emblem. The caps will then be reimported into the United States. You request a determination regarding the eligibility for treatment under subheading 9802.00.50, HTSUS. Subheading 9802.00.50, HTSUS, provides a partial or complete duty exemption for articles exported from and returned to the U.S. after having been advanced in value or improved in condition by repairs or alterations, provided the documentary requirements of section 181.64, Customs Regulations (19 C.F.R. §181.64), are satisfied. Section 181.64, which implements Article 307 of NAFTA, provides that goods returned after having been repaired or altered in Canada may qualify for complete or partial duty free treatment, provided that the requirements of this section are met. However, entitlement to this tariff treatment is precluded in circumstances where the operations performed abroad destroy the identity of the exported articles or create new or commercially different articles through a process of manufacture. Subheading 9802.00.50, HTSUS, treatment is also precluded where the exported articles are incomplete for their intended use and the foreign processing operation is a necessary step in the preparation or manufacture of finished articles. In this instance, the affixing of the metal emblem to the crown constitutes an “alteration” within the meaning of subheading 9802.00.50, HTSUS. These caps are entitled to the special tariff treatment under that provision, provided the documentation requirements of 19 CFR 181.64 are met. The embroidering of the caps is more than an “alteration” within the meaning of subheading 9802.00.50, HTSUS. These caps are not entitled to the special tariff treatment under that provision. Goods returned after having been repaired or altered in Canada other than pursuant to a warranty are subject to duty upon the value of the repairs or alterations using the applicable duty rate under the United States-Canada Free-Trade Agreement (see 19 C.F.R. § 10.301), provided that the requirements of this section are met. For this merchandise the rate is Free. The country of origin of the merchandise remains China. Regarding the caps where the front of the crown will be affixed with a metal emblem, a copy of a directive, published in the Federal Register, issued by the Committee for the Implementation of Textile Agreements (CITA), dated December 20, 1993, is enclosed. It states that “…textile and apparel products which are produced or manufactured in various countries and entered into the United States for consumption…under existing visa and quota requirements are no longer subject to visa or quota requirements upon re-entry into the United States under Harmonized Tariff Schedule (HTS) numbers 9802.00.40 or 9802.00.50 after repairs or alterations.” Your inquiry does not provide enough information for us to give a classification ruling on the merchandise that is laundered in Canada. Your request for a classification ruling should include precise, detailed information regarding the laundering process. Are the hats washed with standard detergent and softener? Is a solvent used? Is there a change to the color or the texture of the hat? When this information is available, you may wish to consider resubmission of your request. We are returning any related samples, exhibits, etc. If you decide to resubmit your request, please include all of the material that we have returned to you. 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 Kenneth Reidlinger at 212-637-7084. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division
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