HQ 223600: Contemplated Use of Foreign Trade Zone for Packaging Operation; classification of unassembled sprayers

Native CBP ruling rendition. Applicability is fact-specific; modification/revocation relationships and original publisher date are retained. Publisher sentinel year0001 means unknown date, not a historical legal adoption.

                            HQ 223600

                         January 6, 1992

FOR-2-03-CO:R:C:E 223600 CB

CATEGORY:  Entry

TARIFF NO.:  8424.81.10

M. Barry Levy, Esq.
Sharretts, Paley, Carter & Blauvelt
67 Broad Street
New York, New York 10004

RE:  Contemplated Use of Foreign Trade Zone for Packaging
     Operation; classification of unassembled sprayers

Dear Mr. Levy:

     This is in response to your letter of April 1, 1991, on
behalf of your client, Hardi Midwest, wherein you requested a
binding ruling regarding the tariff treatment of certain
articles.

FACTS:

     Hardi Midwest (Hardi) would import certain components of
agricultural sprayers into the United States for admission into a
foreign trade zone in nonprivileged foreign status.  Hardi would
also admit into the zone, under domestic status, other
agricultural sprayer components which were manufactured in the
United States.  The imported components would then be grouped
with the domestic components to make complete, unassembled
agricultural sprayers.  The unassembled sprayers would be entered
for consumption into the United States under the provision for
agricultural or horticultural sprayers in subheading
8424.81.1000, HTSUSA.

ISSUE:

     What is the correct tariff treatment of the sprayers upon
withdrawal from the zone?

LAW AND ANALYSIS:

     The statute governing the creation and operation of foreign
trade zones is the Foreign Trade Zones Act of 1934, as amended
(48 Stat. 998; 19 U.S.C. 81a through 81u).  Pursuant to the
                               -2-



provisions of section 3 of the Foreign Trade Zones Act, as
amended (19 U.S.C. 81c), merchandise of every description may be
brought into a zone without being subject to the Customs laws for
the purposes set forth in the statute.  Merchandise may "be
brought into a zone and may be stored, sold, exhibited, broken
up, repacked, assembled, distributed, sorted, graded, cleaned,
mixed with foreign or domestic merchandise, or otherwise
manipulated, or be manufactured...."  19 U.S.C. 81c (1982).

     You state in your ruling request that the component parts
are admitted into the zone in nonprivileged foreign statuts
(NPF).  Merchandise in NPF status is subject to tariff
classification in accordance with its character, condition, and
quantity as constructively transferred to Customs territory at
the time the entry or entry/entry summary is filed with Customs.
Section 146.65(a)(2), Customs Regulations.  Therefore, when the
unassembled sprayer is entered for consumption, it is classified
as an entity and not based on the component parts.

     Regarding the question of the correct classification of the
sprayers, classification of merchandise under the Harmonized
Tariff Schedule of the United States Annotated (HTSUSA) is made
in accordance with the General Rules of Interpretation (GRIs) 1
through 6.  The systematic detail of the HTSUSA is such that
virtually all goods are classified by application of GRI 1, that
is, according to the terms of the headings of the tariff schedule
and any relevant section or chapter notes.  Then, if GRI 1 fails
to classify the goods, and if the headings and legal notes do not
otherwise require, the remaining GRI's may be applied, taken in
order.

     General Rule of Interpretation (GRI) 2(a), HTSUS, states in
part that any reference in a heading to an article shall be taken
to include a reference to that article entered unassembled or
disassembled.  Relevant Explanatory Notes (ENs) indicate that for
purposes of this rule "articles presented unassembled or
disassembled" means articles the components of which are to be
assembled either by means of simple fixing devices (screws, nuts,
bolts, etc.) or by riveting or welding, for example, provided
only simple assembly operations are involved.  Complete but
unassembled agricultural sprayers eligible for classification in
accordance with their condition as constructively transferred to
the Customs territory from a foreign trade zone will be
classified in subheading 8424.81.10, HTSUS, provided they are to
be later assembled as indicated.  Mr. Paley, of your firm,
confirmed that no part of the article will be brought back into
the zone for subsequent entries.

                               -3-


HOLDING:

     The component parts of a sprayer entered into a foreign
trade zone in nonprivileged foreign status are classifiable as an
entity upon withdrawal for consumption from the zone.  In the
instant case, the complete but unassembled sprayers are
classifiable in subheading 8424.81.10, HTSUS.

                              Sincerely,




                              John A. Durant, Director
                              Commercial Rulings Division