CLA-2-61:RR:NC:TA:N3:356 M84172
Mr. Jason Waite
Alston & Bird LLP
601 Pennsylvania Avenue, N.W.
North Building, 10th Floor
Washington, DC 20004-2601
RE: The tariff classification and status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA) of a men’s knit pullover from Honduras.
Dear Mr. Waite:
In your letter dated June 9, 2006, you requested a classification ruling on behalf of your client, Gilden Activewear SRL, concerning the status of a men’s knit pullover under the DR-CAFTA. As requested, your sample will be returned.
Style 2000 is a men’s pullover garment constructed from 100% cotton, finely knit fabric that measures 23 stitches per 2 centimeters counted in the horizontal direction. The fabric weight is more than 200 grams per square meter. Style 2000 features a rib knit crew neckline; short, hemmed sleeves; and a straight, hemmed bottom.
You have described the manufacturing and assembly of the garment as follows:
Style 2000 will be cut and wholly assembled in Honduras from fabric knit in Honduras from yarns wholly formed in the United States.
The garment will be assembled using textured polyester 200 denier single multifilament yarn that is dyed, finished with a sewing lubricant, “Z” twisted, and put up on reels weighing less than 1000 grams.
The textured polyester sewing thread or yarn would be of Indian, Chinese or United States origin and would be dyed, finished and subjected to further processing in India, China, the United States, Canada, or a CAFTA country.
The question you present is whether Style 2000 is eligible for preferential treatment under the DR-CAFTA if the aforementioned textured polyester thread or yarn used in the assembly of the garment is not formed or finished in the territory of one or more of the parties to DR-CAFTA.
The applicable subheading for Style 2000 will be 6110.20.2069, Harmonized Tariff Schedule of the United States, (HTSUS), which provides for: sweaters, pullovers, sweatshirts, waistcoats (vests) and similar articles, knitted or crocheted: of cotton: other: other: other: men's or boys': other. The duty rate is 16.5% ad valorem.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at http://www.usitc.gov/tata/hts/.
Style 2000 falls within textile category designation 338. 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.
General Note 29(b), HTSUS, sets forth the criteria for determining whether a good is originating under DR-CAFTA. General Note 29(b), HTSUS, (19 U.S.C. § 1202) states, in pertinent part, that
For the purposes of this note, subject to the provisions of subdivisions (c), (d), (m) and (n) thereof, a good imported into the customs territory of the United States is eligible for treatment as an originating good under the terms of this note if--
(i) the good is a good wholly obtained or produced entirely in the territory of one or more of the parties to the agreement;
(ii) the good was produced entirely in the territory of one or more of the parties to the agreement, and--
(A) each of the non-originating materials used in the production of the good undergoes an applicable change in tariff classification specified in subdivision (n) of this note; or
(B) the good otherwise satisfies any applicable regional value content or other requirements specified in subdivision (n) of this note;
and the good satisfies all other applicable requirements of this note; or
(iii) the good was produced entirely in the territory of one or more of the parties to the Agreement exclusively from originating materials.
General Note 29 (n) 61.32 requires:
A change to headings 6109 through 6111 from any other chapter, except from headings 5111 through 5113, 5204 through 5212, 5310 through 5311, chapter 54, headings 5508 through 5516 or 6001 through 6006, provided that the good is cut or knit to shape, or both, and sewn or otherwise assembled in the territory of one or more of the parties to the Agreement.
General Note 29 (n), Chapter 61, Chapter rule 4 states that:
Notwithstanding chapter rule 2 to this chapter, a good of this chapter containing sewing thread of headings 5204, 5401 or 5508 shall be considered originating only if such sewing thread is both formed and finished in the territory of one of more of the parties to the Agreement.
Style 2000 was produced in Honduras. Effective April 1, 2006, Honduras became eligible for DR-CAFTA benefits.
The merchandise qualifies for preferential treatment under DR-CAFTA because it meets the requirements of General Note 29 (n), Note 4, and rule 61.32. Based upon your description, the sewing thread used in the assembly of Style 2000 does not fall within heading 5401 because it is a single multifilament yarn, not multiple (folded) or cabled yarn. As such, Chapter rule 4 does not apply and the use of such sewing thread in the assembly of Style 2000 will not affect the CAFTA eligibility of the garments.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177). A copy of this ruling letter 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 this ruling, contact National Import Specialist Mary Ryan at 646-733-3271.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division