Sandler, Travis & Rosenberg. P.A.
5200 Blue Lagoon Drive
Miami, FL 33126
RE: The tariff classification and status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA), of hosiery from Guatemala.
Dear Ms. Shibles:
In your letter dated May 8, 2008, on behalf of your client Hanesbrands, Inc., you requested a ruling on the status of hosiery under the DR-CAFTA.
The submitted samples are pantyhose, Just My Size™ style 93315-E3J and Hanesbrands® Silk Reflections style 717. Style 93315-E3J panty is composed of 92% nylon and 8% spandex. The legs are composed of 88% nylon and 12% spandex. Style 717 panty is composed of 82% nylon and 18% spandex. The legs are composed 85% nylon and 15% spandex. You do not state the decitex for either styles.
You also submitted three samples of yarn. Style C3M 8707C consists of a spandex core with a polyester yarn wrapped around the core. Style C3M S136M consists of a spandex core with a texturized nylon yarn wrapped around the core. Style C3M S152M consists of a spandex core with a nylon yarn wrapped around the core. All three yarns are gimped yarns.
You state the yarns will be produced in non-DR-CAFTA countries and then shipped to Guatemala. In Guatemala, the hosiery will be knit to shape from the non- DR-CAFTA yarns. The hosiery will than be shipped directly to the U.S.
The classification for the hosiery, if measuring per single yarn less than 67 decitex, will be 6115.21.0020, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Panty hose, tights, stockings, socks and other hosiery, including stockings for varicose veins, and footwear without applied, knitted or crocheted: Other panty hose and tights: Of synthetic fibers, measuring per single yarn less than 67 decitex, other. The rate of duty will be 16 percent ad valorem.
The classification for the hosiery, if measuring per single yarn 67 decitex or more, will be 6115.22.0000, HTSUS, which provides for panty hose, tights, stockings, socks and other hosiery…knitted or crocheted: panty hose and tights: of synthetic fibers, measuring per single yarn 67 decitex or more: other. The duty rate will be 14.9 percent ad valorem.
The applicable subheading for the gimped yarns will be 5606.00.0010, HTSUS, which provides for gimped yarn, containing elastomeric filaments. The general rate of duty will be 8 percent 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/.
General Note (GN) 29, HTSUS, sets forth the criteria for determining whether a good is originating under the DR-CAFTA. GN 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 nonoriginating 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.
As the goods contain nonoriginating materials, they would have to undergo an applicable change in tariff classification in order to meet the requirements of GN 29(b)(ii)(A). The specific rule for GN 29(n) Chapter 61/36 states,
A change to headings 6113 through 6117 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.
The non DR-CAFTA yarns, used in the production of the hosiery, meet the terms of the tariff shift rule. Therefore, Style 933-15-E3J and 717 are entitled to a free rate of duty under the DR-CAFTA upon compliance with all applicable laws, regulations, and agreements.
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 Rosemarie Hayward at 646-733-3064.
Robert B. Swierupski