Eligibility of certain socks for a partial duty exemption under subheading 9802.00.50, HTSUS.

NY L86020 July 22, 2005 CLA-2-98:RR:NC:3:353 L86020 CATEGORY: Classification TARIFF NO.: 9802.00.50 Mr. John Pellegrini McGuireWoods LLP 1345 Avenue of the Americas New York, NY 10105-0106 RE: Eligibility of certain socks for a partial duty exemption under subheading 9802.00.50, HTSUS. Dear Mr. Pellegrini: In your letter dated June 24, 2005, on behalf of Paris Accessories, Inc., you requested a determination regarding the eligibility of certain socks for treatment under subheading 9802.00.50, HTSUS. The subject socks were previously imported from China and are being returned to China because the cuffs are too tight. Samples of the defective socks and repaired socks were provided. When the socks are returned to China, they will undergo one of five different operations: The sock cuff is cut, folded over, rehemmed and the fold sewn down. The sock cuff is cut, rehemmed and folded. The sock cuff is cut and rehemmed creating a scalloped edge. The sock cuff is cut and rehemmed creating a scalloped edge; the cuff is not reduced in size as much as in 3. The sock cuff is cut and rehemmed. Subheading 9802.00.50, HTSUS, provides a partial 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 foreign operation does not destroy the identity of the exported articles or create new or commercially different articles through a process of manufacture. Treatment is also precluded in circumstances 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. Repairs or alterations restore articles to their original condition, but cannot be so extreme as to destroy the identity of the exported article or create a new or different article. Based on the information supplied to this office, the socks qualify for a partial duty exemption under subheading 9802.00.50, HTSUS. You state that the manufacturer will make the repairs or alterations free of charge. U.S. Note 3(a), Subchapter II, HTSUSA, states: Articles repaired, altered, processed or otherwise changed in condition abroad.--he following provisions apply only to subheadings 9802.0040 through 9802.00.60, inclusive: The value of repairs, alterations, processing or other change in the condition outside the United States shall be: The cost to the importer of such charge; or (ii) If no charge is made, the value of such charge, as set out in the invoice and entry papers; except that, if the appraiser concludes that the amount so set does not represent a reasonable cost or value, then the value of the change shall be determined in accordance with section 402 of the Tariff Act of 1930, as amended. A directive, published in the Federal Register, issued by the Committee for the Implementation of Textile Agreements (CITA), dated December 29, 2004, exempts certain products from China Textile Safeguard import limits, including “…articles returned to the United States having been advanced in value or improved in condition, entered under HTS subheadings 9802.0040 or 9802.00.50…” 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 646-733-3053. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division