OT:RR:CTF:VS H259359 CMR

Mr. Ricky Villena
Neutralogistics CHB
8578 NW 23rd Street
Miami, FL 33122

RE: Reconsideration of New York Ruling Letter (NY) N248184, dated December 13, 2013; eligibility of garments for preferential treatment under the CTPA

Dear Mr. Villena:

It has come to our attention that an error was made in New York Ruling Letter (NY) N248184, dated December 13, 2013, issued to you on behalf of your client, Top Secret Society, regarding the eligibility of four garments for preferential tariff treatment under the United States – Colombia Trade Promotion Agreement (CTPA). The classifications provided in the ruling letter are correct. However, we are modifying NY N248184 as to the determination of eligibility under the CTPA.

Pursuant to section 625(c)(1), Tariff Act of 1930 (19 U.S.C. §1625(c)(1)), as amended by section 623 of Title VI, notice of the proposed modification was published on December 17, 2014, in the Customs Bulletin, Volume 48, No. 50. CBP received no comments in response to this notice.

FACTS:

The garments are described in the ruling as follows:

Style 0113 is a woman’s bralette constructed of two-ply 90% polyamide and 10% elastane knit fabric. The bralette features elasticized shoulder straps, elasticized neck and arm openings, and an elasticized bottom band.

Style 0213 is a woman’s strapless bra constructed of two-ply 90% polyamide and 10% elastane knit fabric. The bra features elasticized top and bottom bands. Style 1313 is a woman’s strapless bra constructed with an outer ply of 87% polyamide and 13% elastane lace-like knit fabric and an inner ply of 85% polyamide and 15% elastane knit fabric. The garment features elasticized top and bottom bands.

Style 2113 is a woman’s bralette constructed of an outer ply of 87% polyamide and 13% elastane lace-like knit fabric and an inner ply of 85% polyamide and 15% elastane knit fabric. The bralette features a V-neckline, elasticized shoulder straps, elasticized neck and arm openings, and an elasticized bottom band.

In NY N248184, all four garments were classified in subheading 6121.10.9020, Harmonized Tariff Schedule of the United States (HTSUS), which provides for brassieres of man-made fibers, not containing lace, net or embroidery, and not containing 70 percent or more by weight of silk or silk waste.

The ruling describes the manufacturing process for the garments as:

All fabric is manufactured in Colombia. All fabric is cut, sewn and assembled in Colombia.

The sewing thread is produced in Colombia.

The heat transfer is produced in Colombia.

The goods are imported directly into the U.S. from Colombia

ISSUE:

Whether the subject garments, manufactured as described above, qualify for preferential tariff treatment under the CTPA.

LAW AND ANALYSIS:

The U.S.- Colombia Trade Promotion Agreement Implementation Act, Public Law 112-42, 125 Stat. 462, is implemented in the Harmonized Tariff Schedule of the United States at General Note (GN) 34.

GN 34(b) provides in relevant part:

(b) For the purposes of this note, subject to the provisions of subdivisions (c), (d), (n) and (o) thereof, a good imported into the customs territory of the United States is eligible for treatment as an originating good of Colombia or of the United States under the terms of this note if–

* * *

(ii) the good is produced entirely in the territory of Colombia or of the United States, or both, and--

(A) each of the nonoriginating materials used in the production of the good undergoes an applicable change in tariff classification specified in subdivision (o) of this note; or

(B) the good otherwise satisfies any applicable regional value-content or other requirements set forth in such subdivision (o); and

satisfies all other applicable requirements of this note and of applicable regulations; or . . . .

For the purposes of subdivision (b)(ii)(A), the term “used” means utilized or consumed in the production of the goods.

The ruling indicates that all fabric is manufactured in Colombia and that the fabrics contain yarns produced in Mexico. Therefore, as the garments at issue contain non-originating material, it is appropriate to look to GN 34(b)(ii)(A). As the garments are classified in subheading 6112.10.9020, HTSUS, the applicable tariff shift rule in GN 34 is:

GN 34(o) –

34. A change to subheading 6212.10 from any other chapter, provided that the good is cut or knit to shape, or both, and sewn or otherwise assembled in the territory of Colombia or of the United States, or both.

Additionally, Chapter Rule 4, Chapter 62, GN 34(o), requires sewing thread of heading 5201 or 5401 contained in a good of the chapter to be both formed and finished in the territory of Colombia, the United States, or both, for a good of the chapter to be considered an originating good.

A review of the tariff shift rule cited above reveals that the production of the goods from fabric which is cut and assembled into the garments meets the requirements of the tariff shift rule. In addition, as the sewing thread was produced in Colombia, i.e., formed and finished there, Chapter Note 4, Chapter 62 is met.

HOLDING:

The garments at issue, Styles 0113, 0213, 1313, and 2113 qualify for preferential tariff treatment under the CTPA. NY N248184, dated December 13, 2013, is hereby modified in accordance with the analysis set forth above. In accordance with 19 U.S.C. § 1625(c), this ruling will become effective 60 days after its publication in the Customs Bulletin.

A copy of this ruling letter should be attached to the entry documents filed at the time the goods are entered. If the documents have been filed without a copy, this ruling should be brought to the attention of the CBP officer handling the transaction.

Sincerely,

Myles B. Harmon, Director
Commercial and Trade Facilitation Division