The eligibility of certain knit garments for partial duty exemption under subheading 9802.00.50, HTSUS.

N106159 June 10, 2010 CLA-2-98:OT:RR:NC:WA:356 CATEGORY: Classification TARIFF NO.: 6105.20.2010; 9802.00.50 Mr. Keith Mims Mrs. Reba McCall Hartwell Industries, Inc. 97 Winfield Circle P.O. Box 1399 Hartwell, GA 30643 RE: The eligibility of certain knit garments for partial duty exemption under subheading 9802.00.50, HTSUS. Dear Mr. Mims and Mrs. McCall: In your letter dated May 10, 2010, you requested a ruling on the eligibility for a partial duty exemption for certain men’s and women’s 100% polyester, knit polo shirts that are being exported from the United States to undergo washing operations in Jordan or Taiwan before return to the United States. Samples of the garments were submitted with the inquiry and are being returned, as requested. The submitted samples are men’s shirts constructed from 100% polyester, finely knit fabric that measures more than 10 stitches per linear centimeter counted in both the horizontal and vertical directions. The garments have a rib knit spread collar, a partial front opening with three button closures, short, raglan sleeves, and a straight hemmed bottom with side slits. The applicable subheading for the garments will be 6105.20.2010, Harmonized Tariff Schedule of the United States, (HTSUS), which provides for: men’s or boys’ shirts, knitted or crocheted: of man-made fibers: other: men’s. The duty rate is 32% ad valorem. 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/. You state that the imported shirts are being returned to the manufacturers in Jordan and Taiwan to undergo a washing operation before being re-imported into the United States. The manufacturer will remove the garment from the polybag, unfold it, and wash the garment in hot water using a commercial laundry detergent. The garment will then be dried, pressed, refolded, and rebagged before return to the United States. No other operations will be performed on the garments. Subheading 9802.00.50, HTSUS, provides a partial or complete duty exemption for articles exported from and returned to the United States after having been advanced in value or improved in condition by repairs or alterations, provided that the documentary requirements of 19 C.F.R. §10.8 are satisfied. 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 garments are complete for their intended use as wearing apparel prior to being exported to undergo the washing operation. As exported from the United States, the garments are finished products in that they are suitable for use as wearing apparel. Although the operations performed on the garments alter the appearance of the garments, such operations do not otherwise enhance the character of the garments. The merchandise in its condition as exported from the United States and as returned to the United States can be marketed and sold to consumers for the same use. The operations performed on the goods do not result in the loss of the good’s identity nor create a new article with a different commercial use. Therefore, the aforementioned washing operation constitutes an acceptable alteration within the meaning of subheading 9802.00.50. The garments will qualify for the special tariff treatment of that provision, provided that the documentary requirements of 19 C.F.R. § 10.8 are satisfied. 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 Mary Ryan at 646-733-3271. Sincerely, Robert B. Swierupski Director National Commodity Specialist Division