# Entry of Certain Goods Assembled Abroad From Components Cut to Shape in the U.S. From Foreign Fabric > Briefs, arguments, decisions, and more. URL: https://www.frixlaw.com/law-library/documents/fr%3A96-17689 ## Record - **Collection:** Federal Register - **Document type:** Notice - **Published:** July 12, 1996 - **Citation:** 61 FR 36784 ## Text DEPARTMENT OF THE TREASURY Customs Service Entry of Certain Goods Assembled Abroad From Components Cut to Shape in the U.S. From Foreign Fabric AGENCY: U.S. Customs Service, Treasury. ACTION: General notice. ----------------------------------------------------------------------- SUMMARY: This document sets forth instructions for the proper entry under the Harmonized Tariff Schedule of the United States of certain goods assembled abroad from components cut to shape in the U.S. from foreign fabric. FOR FURTHER INFORMATION CONTACT: Craig Walker, Special Classification and Marking Branch, Office of Regulations and Rulings (202-482-6980). SUPPLEMENTARY INFORMATION: Background 1. Entry of Section 334(b)(4)(A) Goods Under 9802.00.8065 Section 10.25, Customs Regulations (19 CFR 10.25) implements section 334(b)(4)(A) of the Uruguay Round Agreements Act (``the Act'') (codified at 19 U.S.C. 3592), which provides that where components are cut to shape in the U.S. from foreign fabric and exported to another country for assembly into an article that is returned to the U.S. and entered, or withdrawn from warehouse, for consumption on or after July 1, 1996, the dutiable value of the article shall not include the value of such components. In the final rule document implementing the provisions of section 334 of the Act, published in the Federal Register on September 5, 1995 (60 FR 46188), Customs stated the following regarding 19 CFR 10.25: Under section 334(b)(4), where goods are assembled abroad from components cut in the United States from foreign fabric (even though under section 334 the cut components are not products of the United States and the assembling country is the country of origin), the assembled goods, when imported into the United States, will continue to receive the same duty treatment presently accorded to such goods under subheading 9802.00.80, HTSUS * * * section 334(b)(4) serves to preserve a tariff treatment that otherwise would no longer be available under the section 334 origin rules * * *. Section 10.25 incorporates by reference the same operational, valuation, and documentation requirements applicable to goods entered under subheading 9802.00.80, HTSUS. Accordingly, in promulgating 19 CFR 10.25, Customs expressed its intent to continue to allow entry of these goods under subheading 9802.00.80, on and after July 1, 1996. Thus, imported goods entitled to a duty allowance under 19 CFR 10.25 are to be entered under subheading 9802.00.8065, HTSUS, and, solely for purposes of calculating the duty allowance under this subheading, Customs will treat these textile components as if they were ``U.S. fabricated components''. It is important to note, however, that permitting the entry of section 10.25 goods under subheading 9802.00.8065, in order to implement the duty allowance provided under section 334(b)(4)(A) of the Act, should not be interpreted as a determination of the country of origin of these cut components. The determination of the country of origin of textile components cut in the U.S. from foreign fabric will be made under a general application of the section 334 rules of origin, as implemented by section 102.21, Customs Regulations (19 CFR 102.21). Thus, it is possible that a shipment of assembled goods will be eligible for a partial duty allowance under subheading 9802.00.8065 pursuant to 10.25, but the country of origin of those goods, for quota, marking and other general origin purposes, will be neither the country of assembly nor the U.S. [[Page 36785]] because the origin of the assembled goods is determined by the origin of the fabric comprising the goods. For example, if Indian-origin fabric is dyed, printed and cut to shape in the U.S. into components for a tent, and those components are assembled in Mexico into a tent, the country of origin of that tent, pursuant to section 334(b)(1) or (2) of the Act, is the origin of the fabric--India. Upon importation into the U.S., the tent may receive a duty allowance under 19 CFR 10.25 for the value of the fabric components, but it will be a product of India for purposes of marking (and quota if applicable). 2. Entry of Section 334(b)(4)(B) Goods Under 9802.00.8040 U.S. Note 2(b), subchapter II, Chapter 98, HTSUS (``Note 2(b)'') (commonly referred to as ``CBI II''), provides for the duty-free treatment of articles (except textile and apparel products, petroleum and petroleum products) assembled or processed in a designated CBI beneficiary country in whole of U.S.-origin components or ingredients (other than water). Headquarters telex No. 9264071 to Customs field offices dated September 28, 1990, set forth instructions regarding the proper entry of goods entitled to duty-free treatment under Note 2(b). Specifically, the telex advised that two statistical breakouts had been created for Note 2(b) articles: subheading 9802.00.5010, HTSUS--for articles processed in whole of U.S. ingredients (other than water); and subheading 9802.00.8040, HTSUS--for articles assembled in whole of U.S. fabricated components. Section 10.26(b), Customs Regulations (19 CFR 10.26(b)), implements section 334(b)(4)(B) of the Act, which provides that, effective for goods entered, or withdrawn from warehouse, for consumption on or after July 1, 1996, no article (except a textile or apparel product) assembled in whole of components cut to shape in the U.S. from foreign fabric, or of such components and components of U.S. origin, in a designated CBI beneficiary country shall be treated as a foreign article or as subject to duty. Thus, through the promulgation of 19 CFR 10.26(b), Customs has fulfilled Congressional intent to continue the duty-free treatment accorded such articles under Note 2(b) prior to July 1, 1996. In keeping with the overall statutory intent, as expressed in 19 CFR 10.26(b), Customs has determined that imported goods entitled to duty-free treatment under 19 CFR 10.26(b) should continue to be entered under subheading 9802.00.8040, HTSUS. All other instructions and documentation requirements set forth in telex No. 9264071 shall also continue to apply to such articles. Dated: July 8, 1996. Stuart P. Seidel, Assistant Commissioner, Office of Regulations and Rulings. [FR Doc. 96-17689 Filed 7-11-96; 8:45 am] BILLING CODE 4820-02-P --- Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/fr%3A96-17689. Public record. Not legal advice.