CLA-2-62:RR:NC:WA:358 L86713

Ms. Priscilla Royster
The Irwin Brown Company
14092 Customs Blvd.
Gulfport, MS 39503

RE: The tariff classification and status under the Caribbean Basin Trade Partnership Act (CBTPA) for girls’ garments from Guatemala.

Dear Ms. Royster:

In your letter dated August 11, 2005, you requested a ruling on the tariff classification and status under the Caribbean Basin Trade Partnership Act (CBTPA) for a girl’s skirt, Style GG5403, and a girl’s jumper, Style GG5405. This request was made on behalf of Isfel Company.

The pleated skirt has a flat front waistband and an elasticized rear waistband. It has non-functional pocket flaps that are set into seams between the waistband and the skirt body. It also has a fabric lining with separate contrast color netting fabric that extends below the lining hemline and forms an extension to the garment silhouette.

The dropped waist jumper has a back zipper opening extending from the rear waist to the nape of the neck and a skirt portion composed of pleated fabric. It has a lightweight, contrast color, sheer fabric belt that secures to the waist by means of five belt loops. It also has a fabric lining with separate contrast color netting fabric that extends below the lining hemline and forms an extension to the garment silhouette.

You state that the garment shells are made of cotton velveteen fabric from China and that the woven polyester lining is from China and the polyester netting extensions and belt fabric are from Taiwan. The fabric will be sent to Guatemala where it will be cut and sewn into the completed garments. The submitted samples are girls’ size 5.

The outer shell fabric, i.e., the cotton velveteen, imparts the essential characteristic of both garments.

The applicable subheading for the skirt will be 6204.52.2080, Harmonized Tariff Schedule of the United States (HTS), which provides for women’s or girls’ skirts and divided skirts, of cotton, other, other, girls’. The general rate of duty is 8.2% ad valorem.

The applicable subheading for the jumper will be 6211.42.0060, Harmonized Tariff Schedule of the United States (HTS), which provides for other garments, women’s or girls’, of cotton, jumpers. The general rate of duty is 8.1% ad valorem.

You inquire whether the skirt and jumper are eligible for preferential tariff treatment under the CBTPA based on articles assembled from fabric not formed in the United States as identified in NAFTA short supply?

You specifically ask whether the skirt and jumper will meet the eligibility requirements of the “short supply” provision. The provision commonly referred to as the “NAFTA short supply” provision is contained in subheading 9820.11.24, of the Harmonized Tariff Schedule of the United States Annotated (HTSUSA). Subheading 9820.11.24, HTSUSA, provides as follows:

Articles imported from a designated beneficiary Caribbean Basin Trade Partnership country enumerated in general note 17(a) to the tariff schedule: Apparel articles both cut (or knit-to-shape) and sewn or otherwise assembled in one or more such countries from fabrics or yarn not formed in the United States or in one or more such countries, provided that such apparel articles of such fabrics or yarn would be considered an originating good under the terms of general note 12(t) to the tariff schedule without regard to the source of the fabric or yarn if such apparel article had been imported from the territory of Canada or the territory of Mexico directly into the customs territory of the United States.

None of the fabric used in the manufacture of the garments is formed in the U.S. or a CBTPA beneficiary country. Thus, in order to determine whether the goods are eligible for preferential treatment under the CBPTA, we must determine whether the skirt and jumper would be considered originating goods under General Note 12(t), HTSUSA.

General Note 12(t), HTSUSA, sets out the tariff shift rules for determining whether non-originating materials used in the production of a good have been transformed into originating goods under the North American Free Trade Agreement.

For the skirt, subheading 6204.52, HTSUSA, General Note 12(t), HTSUSA, provides that a good will be originating if there is:

A change to subheadings 6204.51 through 6204.53, from any other chapter, except from headings 5106 through 5113, 5204 through 5212, 5307 through 5308, or 5310 through 5311, chapter 54, or headings 5508 through 5516, 5801 through 5802 or 6001 through 6006, provided that: (A) the good is both cut and sewn or otherwise assembled in the territory of one or more of the NAFTA parties, and (B) the visible lining fabric listed in chapter rule 1 for chapter 62 satisfies the tariff change requirements provided therein.

The cotton velveteen fabrics imported into Guatemala are classified under heading 5801.23, HTSUSA. Since heading 5801.23, HTSUSA, is not excepted from the tariff shift rule, the skirt would qualify as an originating good assuming the pants are cut and sewn in Guatemala.

The polyester lining fabrics imported into Guatemala are classified under heading 5407.6199, HTSUSA. Since heading 5407.6199, HTSUSA, is not excepted from the tariff shift rule for visible lining fabric, the skirt would qualify as an originating good assuming the skirt is cut and sewn in Guatemala.

The skirt has polyester lining and netting fabric that are not formed in the U.S. or a CBTPA beneficiary country. However, Chapter rule 3 to Chapter 62, GN 12(t), HTSUSA, provides as follows:

For purposes of determining the origin of a good of this chapter, the rule applicable to that good shall only apply to the component that determines the tariff classification of the good and such component must satisfy the tariff change requirements set out in the rule for that good. If the rule requires that the good must also satisfy the tariff change requirements for visible lining fabrics listed in chapter rule 1 for this chapter, such requirement shall only apply to the visible lining fabric in the main body of the garment, excluding sleeves, which covers the largest surface area, and shall not apply to removable linings.

Thus, for the purposes of determining whether the skirt is originating under GN 12(t), HTSUSA, we disregard the polyester fabrics because they are not the components that determine the tariff classification of the good.

Based upon the information you supplied, the girl’s skirt, Style GG5403, meets the requirements of subheading 9820.11.24 for free duty treatment under the CBTPA.

For the jumper, subheading 6211.42, HTSUSA, General Note 12(t), HTSUSA, provides that a good will be originating if there is:

A change to subheadings 6204.51 through 6204.53, from any other chapter, except from headings 5106 through 5113, 5204 through 5212, 5307 through 5308, or 5310 through 5311, chapter 54, or headings 5508 through 5516, 5801 through 5802 or 6001 through 6006, provided that the good is both cut and sewn or otherwise assembled in the territory of one or more of the NAFTA parties.

The cotton velveteen fabrics imported into Guatemala are classified under heading 5801.23, HTSUSA. Since heading 5801.23, HTSUSA, is not excepted from the tariff shift rule, the jumper would qualify as an originating good assuming the jumper is cut and sewn in Guatemala.

The jumper has polyester lining and netting fabric and a shear polyester belt that is not formed in the U.S. or a CBTPA beneficiary country. Chapter rule 3 to Chapter 62, GN 12(t), HTSUSA, provides as follows:

For purposes of determining the origin of a good of this chapter, the rule applicable to that good shall only apply to the component that determines the tariff classification of the good and such component must satisfy the tariff change requirements set out in the rule for that good.

Thus, for the purposes of determining whether the jumper is originating under GN 12(t), HTSUSA, we disregard the polyester fabrics because they are not the components that determine the tariff classification of the good. Based upon the information you supplied, the girl’s jumper, Style GG5405 meets the requirements of subheading 9820.11.24 for free duty treatment under the CBTPA.

Cotton skirts fall within textile category designation 342. Cotton jumpers fall within textile category designation 359. Based upon international textile trade agreements products of Guatemala are not subject to quota and do not require a visa.

Quota and visa status are the result of international agreements that are subject to frequent renegotiations and changes. To obtain the most current information as to whether quota and visa requirements apply to this merchandise, we suggest that you check, close to the time of shipment, the “Textile Status Report for Absolute Quotas” available at our web site at www.cbp.gov. In addition, you will find current information on textile import quotas, textile safeguard actions and related issues at the web site of the Office of Textiles and Apparel, at otexa.ita.doc.gov.

This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).

A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Bruce Kirschner at 646-733-3048.

Sincerely,

Robert B. Swierupski
Director,
National Commodity
Specialist Division