HQ 544108: Applicability of partial duty exemption to certain saw blade blanks.

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 544108

                                    June 20, 1988

          CLA-2  CO:R:C:V  544108DBI

          CATEGORY: Classification

          TARIFF NO.: 9802.00.80

          Mr. Howard Soled
          Allway Tools, Inc.
          1513 Olmstead Avenue
          Bronx, New York  10462

          RE:  Applicability of partial duty exemption to certain saw
                    blade blanks.

          Dear Mr. Soled:

               In your letter of December 4, 1987, you requested a ruling
          on behalf of Allway Tools, Inc., concerning the applicability of
          item 807.00, Tariff Schedules of the United States (TSUS; 19
          U.S.C. 1202), to certain saw blade blanks to be processed in
          England and imported by your company.  A sample has been
          submitted for examination.

          FACTS:

               In your letter you state that saw blade blanks will be sent
          to England where a manufacturer will attach an abrasive grit and
          paint the blanks.  The blades will then be imported by Allway
          Tools, Inc. In your telephone conversation on May 11, 1988, with
          a member of my staff, you indicated that the abrasive grit will
          be "welded to the blades with a flux" and that the blades would
          be painted "for appearance."

          ISSUE:

               Whether the described saw blade blanks will be eligible for
          the partial exemption from duty provided for in item 807.00, TSUS
          (9802.00.80, Harmonized Tariff Schedule of the United States
          Annotated (HTSUSA), when imported into the U.S.

          LAW AND ANALYSIS:

               Item 807.00, TSUS, applies to articles assembled abroad in
          whole or in part of fabricated components, the product of the
          U.S., with no operations performed thereon except the attachment
          of the components to form the imported merchandise, and














                                        - 2 -

          operations incidental thereto.  An article classified under item
          807.00, TSUS, is subject to the duty upon the full appraised
          value of the imported article, less the cost or value of such
          products of the U.S.

               Section 10.16(a), Customs Regulations (19 CFR 10.16(a)),
          provides that assembly operations performed abroad may consist of
          any method used to join or fit together solid components, such as
          welding, and may be preceded, accompanied, or followed by
          operations incidental to the assembly as illustrated in paragraph
          (b) of this section.  Pursuant to section 10.16(a) the attachment
          of an abrasive grit by a welding process constitutes an
          acceptable assembly operation.

               Section 10.16(b), Customs Regulations (19 CFR 10.16(b)),
          provides that operations incidental to the assembly process
          whether performed before, during, or after assembly, do not
          constitute further fabrication, and shall not preclude the
          application of the exemption.  Pursuant to section 10.16(b),
          operations which are incidental to the assembly process include
          the application of a preservative paint or coating, including a
          preservative metallic coating, lubricants, or protective
          encapsulation.  Section 10.16(c), Customs Regulations (19 CFR
          10.16(c)), provides that any significant process, operation, or
          treatment other than assembly whose primary purpose is the
          fabrication, completion, physical or chemical improvement of a
          component, or which is not related to the assembly process,
          whether or not it effects a substantial transformation of the
          article, shall not be regarded as incidental to the assembly and
          shall preclude the application of the exemption to such article.
          Section 10.16(c) specifically states that painting primarily
          intended to enhance the appearance of an article shall not be
          regarded as incidental to assembly.

               We have previously held in a ruling dated March 7, 1979
          (HQ 058865), that allowances may be made for components that are
          painted for protection only, as against rust, and not to enhance
          appearance.  Such protective painting was considered incidental
          to assembly.  Painting of the saw blade blanks in question for
          the purpose of appearance is not considered incidental to
          assembly.  





















                                        - 3 -

          HOLDING:

               We are of the opinion that the joining or fitting together
          of the abrasive grit to the saw blade blanks by a welding
          operation is considered an acceptable assembly operation.  On the
          basis of the information submitted, allowances in duty may be
          made under item 807.00, TSUS, for the cost or value for the
          exported saw blade blanks providing that they are not painted,
          upon compliance with the applicable Customs Regulations.

                                     Sincerely,




                                     John Durant, Director
                                     Commercial Rulings Division
                                          












































          1cc: CLA-2 CO:R:C:V:DIZZO:SDZ:5/18/88































































                                  Mr. Howard Soled
                                  Allway Tools, Inc.
                                  1513 Olmstead Avenue
                                  Bronx, New York  10462