The eligibility of baseball pants for partial duty exemption under subheading 9802.00.50, HTSUS.

N152095 April 5, 2011 CLA-2-98:OT:RR:NC:N3:348 CATEGORY: Classification TARIFF NO.: 9802.00.50 Ms. Amy Johannesen Cerny Associates, P.C. 24 Smith Street Building 2, Suite 102 Pawling, NY 12564 RE: The eligibility of baseball pants for partial duty exemption under subheading 9802.00.50, HTSUS. Dear Ms. Johannesen: In your letter dated March 3, 2011, you requested a ruling on behalf of Rawlings Sporting Goods Company, Inc., on whether baseball pants of man-made fiber are eligible for partial duty exemption under subheading 9802.00.50, Harmonized Tariff Schedule of the United States (HTSUS). You state that the baseball pants will be imported into the United States from suppliers in various countries and the applicable duties and fees will be paid upon entry. On occasion, without benefit of drawback, Rawlings will export baseball pants to an overseas processor to be hemmed and/or apply decorative braiding. No other changes are made to the garments. Upon return, you state that the products will be accompanied by the importer declaration required by 19 C.F.R. § 10.8 (a)(2) and the declaration from the person performing the alterations as required by 19 C.F.R. § 10.8 (a)(1). 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. The pants imported into the U.S. are ankle length, and feature a heavy duty elasticized waistband with oversized belt loops, front metal zipper with two waist snaps, two rear pockets, and reinforced knee areas. The pant leg bottoms are finished with an overlock stitch. Rawlings will export the baseball pants to an overseas processor. The overseas processor will perform a straight hem or an elastic cuff to the bottom of the pant legs. The overseas processor may also apply a 1/8” or 3/8” width decorative braid overlay to the finished side seam of the pants. In this instance, garments are complete for their intended use as wearing apparel prior to being exported to be hemmed and/or apply the decorative braiding. 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 hemming and/or application of braiding overlay constitute acceptable alterations 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). If you have any questions regarding the ruling, contact National Import Specialist Rosemarie Hayward at (646) 733-3064. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division