The tariff classification of condenser units from Japan, Korea, Russia and whether U.S. titanium tubing will be eligible for the duty exemption available under subheading 9802.00.80, HTSUS, when returned to the U.S. from Russia, Japan or Korea in the form of a condenser unit.

N052177 March 5, 2009 CLA-2-84:OT:RR:E:NC:1:120 CATEGORY: Classification TARIFF NO.: 8404.20.0000, 9802.00.80 Ms. Janice McEachern Rogers and Brown 2 Cumberland Street Charleston, SC 29401 RE: The tariff classification of condenser units from Japan, Korea, Russia and whether U.S. titanium tubing will be eligible for the duty exemption available under subheading 9802.00.80, HTSUS, when returned to the U.S. from Russia, Japan or Korea in the form of a condenser unit. Dear Ms. Janice McEachern: In your letter dated February 17, 2009 you requested a tariff classification ruling concerning the applicability of subheading 9802.00.80, Harmonized Tariff Schedule of the United States (HTSUS). Specifically, you requested a determination whether U.S. titanium tubing will be eligible for the duty exemption available under subheading 9802.00.80, HTSUS, when returned to the U.S. from Russia, Japan or Korea in the form of a condenser unit. Subheading 9802.00.80, HTSUS, provides a partial duty exemption for:[a]rticles assembled abroad in whole or in part of fabricated components, the product of the United States, which (a) were exported in condition ready for assembly without further fabrication, (b) have not lost their physical identity in such articles by change in form, shape, or otherwise, and (c) have not been advanced in value or improved in condition abroad except by being assembled and except by operations incidental to the assembly process, such as cleaning, lubricating, and painting.All three requirements of subheading 9802.00.80, HTSUS, must be satisfied before a component may receive a duty allowance. An article entered under this tariff provision is subject to duty upon the full cost or value of the imported assembled article, less the cost or value of the U.S. components assembled therein, upon compliance with the documentary requirements of section 10.24, Customs Regulations (19 CFR 10.24).Titanium scrap, sponge or slab is melted and manufactured into tubes in the US. The US tubes qualify as parts of condensers provided for in subheading 8404.90.0000 and are exported to Japan, Russia, or Korea in condition ready for assembly without further fabrication. The tubes are welded into a condenser unit that is provided for in subheading 8404.20.0000, HTSUS. The condenser units are then imported to the US for use in power plants to condense the steam from the turbine. The applicable subheading for the condenser units will be 8404.20.0000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Condensers for steam or other vapor power units. The rate of duty will be 5.6%. The US titanium tubing assembled to the condenser unit meets all three requirements of subheading 9802.00.80, HTSUS and is entitled to the duty exemption available under subheading 9802.00.80, HTSUS. This provision allows duty free entry of US fabricated components that are returned to the US as part of articles assembled abroad. Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at http://www.usitc.gov/tata/hts/. 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 Denise Faingar at (646) 733-3010. Sincerely, Robert B. Swierupski Director National Commodity Specialist Division