American Components Assembled Abroad

Summary of American Components Assembled Abroad

Within the meaning of the Tariff Schedules of the Unites States, Annotated (TSUSA), imported merchandise which was assembled abroad from components produced in the United States and eligible for relief from duties on the value of the American components. Importation of such merchandise is addressed in Item 807.00 of the TSUSA, which defines eligible articles as: 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.

In computing the value for duty of articles under Item 807.00, the full value of the imported article will be reduced by the value of the American components. Because of the identity requirements, articles made abroad from American components which will be transformed, such as bolts of cloth or rolls of metal, for example, would not qualify under this tariff item.

See TARIFF SCHEDULES OF THE UNITED STATES.

(Main Author: William J. Miller)