Applicability of duty exemption under subheading 9802.00.50, HTS, to piccolo parts

NY J88553 October 3, 2003 CLA-2-92:RR:NC:2:227 J88553 CATEGORY: Classification TARIFF NO.: 9205.90.40; 9802.00.50 Mr. J. James Phelan Burkart-Phelan, Inc. 20 Main Street Acton, MA 01720 RE: Applicability of duty exemption under subheading 9802.00.50, HTS, to piccolo parts Dear Mr. Phelan: In your letter dated August 24, 2003, you requested a ruling on the classification and applicability of subheading 9802.00.50, Harmonized Tariff Schedule of the United States (HTS), to parts which are used to manufacture piccolos in China and imported into the U.S. You state that piccolo parts (such as heads and bodies of imported wood, brass and nickel keys, pads and wire) manufactured in the U.S., are sent to China where they become part of the processing to produce finished piccolos. This processing includes cutting, trimming, assembly, mounting, bending, drilling, soldering and finishing. The U.S. origin parts represent approximately 50 percent of the cost. Subheading 9802.00.50, (HTS), provides for the assessment of duty on the value of repairs or alterations performed on articles sent abroad for that purpose. However, the application of this tariff provision is 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. On the basis of the information submitted, we find that the piccolo parts exported to China are incomplete for their intended use and that the cutting, polishing, bending, shaping, drilling and the like operations are necessary steps in the preparation of the articles as finished piccolos. Consequently, the parts are not entitled to subheading 9802.00.50, HTS, treatment. The applicable subheading for the finished piccolos will be 9205.90.40, (HTS), which provides for other woodwind musical instruments; piccolos. The duty rate will be 4.9 percent ad valorem. The country of origin of the imported piccolos is China and must be marked accordingly. 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 George Kalkines at 646-733-3028. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division