The eligibility of recut wire drawing dies for preferential tariff treatment under subheading 9802.00.50

NY K86751 July 1, 2004 CLA-2-82:RR:NC:1:104 K86751 CATEGORY: Classification TARIFF NO.: 9802.00.50 Mr. Thomas M. Keating Hodes, Keating & Pilon 39 South LaSalle Street, Suite 1020 Chicago, Illinois 60603-1731 RE: The eligibility of recut wire drawing dies for preferential tariff treatment under subheading 9802.00.50 Dear Mr. Keating: In your letter dated June 9, 2004 on behalf of Fort Wayne Wire Die, Inc. (FWWD) you requested a tariff classification ruling. You inquire whether certain recut wire drawing dies of subheading 8207.20.00 are eligible for preferential tariff treatment under subheading 9802.00.50. Samples have been provided of the dies before and after processing. The samples will be returned per your request. The dies were originally manufactured in the United States. FWWD exports used, worn diamond wire drawing dies to various countries for processing. Once the processing is completed, the recut dies will be returned to the U.S. for sale to end users to draw wire. The following processes take place outside the United States: polishing, sizing, finishing, and stamping. The inside diameter of the die is polished to remove the wear and then sized to bring the die to an altered diameter and form. The altered die is then polished and finished to remove the surface blemishes and stamped with the altered die size. Each die is identified with a unique serial number on the back and the new altered die size on the front. You state that the processing is similar to the processing described in HQ ruling 561108 dated March 23, 1999. In this ruling, customs held that the re-sizing operations performed in Mexico on worn diamond wire drawing dies did not result in a change in the character or use of the die and that the operations constituted acceptable “repairs” or “alterations” within the meaning or subheading 9802.00.50. The operations performed included polishing, sizing, finishing and stamping. The reprocessed dies will have a different size. This issue was also addressed in HQ 561108. The ruling indicated that although the foreign processing did not restore the dies to their original condition, the identical die dimension, it does not create a new and commercially different article. It is still a wire drawing die. The foreign processing extends the life of the die rendering it fit for its original use albeit for drawing wire of a different size or form. Based upon the information provided, the foreign processing to be performed in various countries which re-sizes the diameter of the exported used, worn diamond wire drawing dies acts to prolong the useful life of the exported dies by rendering them fit for their original use. Accordingly, these operations constitute acceptable "repairs" or "alterations," within the meaning of subheading 9802.00.50, HTSUS. Therefore, upon their return to the U.S., the recut wire drawing dies will be eligible for the duty exemption available under this tariff provision provided the documentary requirements of 19 CFR 10.8 are met. 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 Robert Losche at 646-733-3011. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division