CLA-2 RR:CR:SM 562093 KSG
Port Director
U.S. Customs Service
P.O. Box 3130
Laredo, Texas 78044
RE: Application for Further Review of Protest No. 2304-99-100346; submission of supporting documentation; subheading 9802.00.90
Dear Director:
This is in reference to a Protest and Application for Further Review timely filed by the broker on behalf of Periscope I Sportswear, contesting the denial of duty-free treatment under subheading 9802.00.90 of the Harmonized Tariff Schedule of the United States ("HTSUS"), for certain women's clothing.
FACTS:
Periscope I Sportswear ("Periscope") entered women's clothing assembled in Mexico on May 4, 1999, under subheadings 9802.00.8055, 9802.00.8065, and 9802.00.90, HTSUS.
Customs sent a Request for Information ("CF-28") on June 2, 1999, requesting: 1) a valid textile declaration signed by the manufacturer, including the country of origin for the fabric; 2) a manufacturer's affidavit for all U.S. components claimed under subheading 9802.00.8065; 3) cutting records and export documentation for cut components for subheading 9802.00.8055, and 4) applicable subheading 9802.00.90 documentation. All the documentation was to be presented in a reconciliable manner by style number. The importer was given 30 days to provide this documentation. The CF-28 was sent to the importer and the broker.
The importer did not submit the requested documentation within the 30-day period. On July 14, 1999, a Notice of Action (CF- 29) was proposed to rate advance the entry. On August 9, 1999, a Notice of Action was taken to rate advance the entry. This was sent to the importer and the broker. The entry was liquidated on October 8, 1999, with an increase in duties.
On October 29, 1999, the broker submitted a letter with several invoices and stated that various garment styles were cut in the U.S., but submitted none of the requested supporting documentation. The broker acknowledged that two garment styles were not eligible for classification in subheading 9802.00.8055, HTSUS, and paid duties for these styles. A protest was filed on December 29,1999, claiming subheading 9802.00.90 treatment for 3 styles of clothing.
ISSUE:
Whether the women's apparel, entered as described above, is entitled to duty-free treatment under subheading 9802.00.90, HTSUS.
LAW AND ANALYSIS:
Subheading 9802.00.90, HTSUS, provides for the duty-free treatment of:
Textile and apparel goods, assembled in Mexico in which all fabric components were wholly formed and cut in the United States, provided that such fabric components, in whole or in part (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, provided that goods classifiable in chapters 61, 62, or 63 may have been subject to bleaching, garment dyeing, stone-washing, acid-washing or perma-pressing after assembly as provided for herein.
Your office states that in order to be eligible for subheading 9802.00.90, HTSUS, the articles must be made of fabric formed in the U.S., the fabric must be cut to shape in the U.S., the apparel must be assembled in Mexico, and documentary evidence must be submitted to confirm each requirement, such as a mill certificate, manufacturer's affidavit from the producing mill, and a pedimento de importation which substantiates that U.S. cut components were exported to Mexico. Headquarters telex #5254171, dated September 11,1995, available on the Customs website under "CEBB" and "Trade Operations Instructions" lists a series of documents as supporting eligibility under 9802.00.90, HTSUS. The telex provides, in pertinent part, that:
The following documents should be maintained by all importers participating in the 9802.00.9000 program and available for review by the appropriate Customs Officer conducting a compliance review:
1) Entry documents into the U.S.
2) Export documents to Mexico.
3) Cutting ticket including name and location of the facility, style number, total number being cut and type of fabric.
4) Mill invoice.
5) A signed statement from the mill that the fabric is of U.S. origin.
6) Transportation documents.
As stated above, to qualify for entry under subheading 9802.00.90, all the fabric components must be wholly formed and cut in the U.S. The importer has failed to submit supporting documentation requested by Customs that would establish that the fabric was formed in the U.S., transportation documents that would show that the fabric components were cut in the U.S. and exported to Mexico. Accordingly, the claims for duty-free treatment were properly denied. The protest should be denied in full.
HOLDING:
The importer failed to submit the requested documentation to support the claim for the entry of the women's clothing under subheading 9802.00.90, HTSUS. The protest should be denied in full.
In accordance with Section a(11)(b) of Customs Directive 099 3550-065, dated August 4, 1993, Subject: Revised Protest Directive, you are to mail this decision, together with the Customs Form 19, to the protestant no later than 60 days from the date of this letter. Any reliquidation of the entry or entries in accordance with the decision should be accomplished prior to mailing of this decision. Sixty days from the date of this decision, the Office of Regulations and Rulings will make the decision available to Customs personnel, and to the public on the
Customs Home Page on the World Wide Web at www.customs.gov, by means of the Freedom of Information Act, and other methods of public distribution.
Sincerely,
John Durant, Director
Commercial Rulings Division