[Code of Federal Regulations]

[Title 19, Volume 1]

[Revised as of April 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 19CFR10.13]



[Page 98]

 

                        TITLE 19--CUSTOMS DUTIES

 

   CHAPTER I--BUREAU OF CUSTOMS AND BORDER PROTECTION, DEPARTMENT OF 

              HOMELAND SECURITY; DEPARTMENT OF THE TREASURY

 

PART 10_ARTICLES CONDITIONALLY FREE, SUBJECT TO A REDUCED RATE, ETC.

--Table of Contents

 

                      Subpart A_General Provisions

 

Sec.  10.13  Statutory provision: Subheading 9802.00.80, Harmonized 

Tariff Schedule of the United States (19 U.S.C. 1202).



    Subheading 9802.00.80, Harmonized Tariff Schedule of the United 

States (HTSUS), (19 U.S.C. 1202), provides that articles assembled 

abroad in whole or in part of fabricated components, the product of the 

United States, which (a) were exported in condition ready for assembly 

without further fabrication, (b) have not lost their physical identity 

in such articles by change in form, shape, or otherwise, and (c) have 

not been advanced in value or improved in condition abroad except by 

being assembled and except by operations incidental to the assembly 

process such as cleaning, lubricating, and painting, are subject to a 

duty upon the full value of the imported article, less the cost or, if 

no charge is made, the value of such products of the United States. The 

rate of duty which is assessed upon the dutiable portion of the imported 

article is that which is applicable to the imported article as a whole 

under the appropriate provision of the HTSUS (19 U.S.C. 1202) for such 

article. If that provision requires a specific or compound rate of duty, 

the total duties assessed on the imported article are reduced in such 

proportion as the cost or value of the returned United States components 

which qualify for the exemption bears to the full value of the assembled 

article.



    Example 1. A transistor radio is assembled abroad from foreign-made 

components and American-made transistors. Upon importation, the 

transistor radio is subject to the ad valorem rate of duty applicable to 

transistor radios upon the value of the radio less the cost or value of 

the American-made transistors assembled therein.

    Example 2. A solid-state watch movement is assembled abroad from 

foreign-made components and an American-made integrated circuit. If the 

movement in question is subject to the specific rate of duty of 75 cents 

if the value of the assembled movement is $30, and if the value of the 

American-made integrated circuit is $10, then the value of the 

integrated circuit represents one third of the total value of the 

assembled article and the duty on the assembled article will be reduced 

by one third ($.25). Therefore, the duty on the assembled movement is 50 

cents.



[T.D. 75-230, 40 FR 43021, Sept. 18, 1975, as amended by T.D. 89-1, 53 

FR 51247, Dec. 21, 1988]