The applicability of Harmonized Tariff Schedule of the United States (HTSUS) subheading 9802.00.50 to Steel Frames.

N131138 December 2, 2010 CLA-2-98:OT:RR:NC:1:104 CATEGORY: Classification TARIFF NO.: 9802.00.50 William Thomas Gould, C.C.S., CHB Attorney 3807 W. Sierra Highway, #6 PMB 4617 Acton, CA 93510-1256 RE: The applicability of Harmonized Tariff Schedule of the United States (HTSUS) subheading 9802.00.50 to Steel Frames. Dear Mr. Gould: In your letter dated November 2, 2010 on behalf of your client Kyocera America Inc., you requested a ruling regarding the applicability of subheading 9802.00.50, Harmonized Tariff Schedule of the United States (HTSUS), to the two samples of steel frames you submitted. They are being returned as requested. The submitted samples consisted of steel frames. One frame has “ceramic green tape” and dark green tape attached to it and the other frame has had the material removed and any remaining residue cleaned off. You inquired about the applicability of subheading 9802.00.50, Harmonized Tariff Schedule of the United States (HTSUS), to the finished steel frames that will be exported from the United States to Mexico and returned after being cleaned in Mexico. You stated in your letter, that the steel frames being sent to Mexico have “ceramic green tape” and dark green tape, mounted on the frames from the manufacturing process done in the United States. The frames with the material on it will be sent to Mexico for removing the “ceramic green tape” and the dark green tape, as well as cleaning off any remaining residue. The cleaned frames will then be imported back into the United States for reuse. 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 means of repairs or alterations. Articles returned to the United States after having been repaired or altered in Mexico, whether or not pursuant to a warranty, may be eligible for duty–free treatment provided that the documentary requirements of Section 181.64, Customs Regulations (19 C.F.R. §181.64), are satisfied. A definition for repairs or alterations can be found within 19 C.F.R. §181.64(a) and it is stated to mean “restoration, addition, renovation, redyeing, cleaning, resterilization or other treatment which does not destroy the essential characteristics of, or create a new and commercially different good from the good exported from the United States.” Entitlement to the special tariff treatment of subheading 9802.00.50, HTSUS, is precluded in circumstances where the operations performed abroad destroy the identity of the exported articles or create a new or commercially different article through a process of manufacture. Entitlement to this special treatment is also precluded when 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 steel frames are complete for their intended use prior to being exported to Mexico for the alterations described above. The operations performed in Mexico do not create a new or commercially different article and does not result in the loss of the good’s identity. The cleaning process in Mexico of these items, in the manner described, will qualify as alterations within the meaning of subheading 9802.00.50, HTSUS. These steel frames, as described, will be entitled to duty-free treatment as per U.S. Note 3(d) of Section XXII, Chapter 98, Subchapter II when returned to the United States, provided that the documentary requirements of 19 C.F.R. §181.64 are satisfied. 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 Patricia O’Donnell at (646) 733-3011. Sincerely, Robert B. Swierupski Director National Commodity Specialist Division