CLA-2-62:OT:RR:NC:3:360
Mr. Rafael Park
Gloria Apparel Inc.
213 West 35th Street
Suite #305
New York, NY 10001
RE: The tariff classification and status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA), of a woman’s suit from Guatemala.
Dear Mr. Park:
In your letter dated May 19, 2010, you requested a ruling on the status of a woman’s suit from Guatemala under the DR-CAFTA.
Style CS981012 is a woman’s suit, consisting of a jacket and pants, constructed from 100 percent polyester woven fabric. The jacket is composed of more than three panels and features long hemmed sleeves, a notched collar, two pockets with flaps below the waist, shoulder pads, a full lining and a full front opening secured by a one button closure. The jacket also has a rear vent. The pants feature a waistband with a button and two hook and eye closures, a front zippered opening, two front pockets, two rear pockets, a lining and long hemmed legs.
You have indicated that the suit will also be constructed from woven fabrics that are 66 percent polyester/34 percent rayon and 63 percent polyester/33 percent rayon, and 4 percent spandex.
The applicable tariff provision for the suit (in all fabrications) will be 6204.13.2010, Harmonized Tariff Schedule of the United States (HTSUS), which provides for women’s or girls’ suits, ensembles, suit-type jackets, blazers, dresses, skirts, divided skirts, trousers, bib and brace overalls, breeches and shorts (other than swimwear): suits: of synthetic fibers: other: women’s. The general rate of duty will be 35.3 cents/kg + 25.9 percent ad valorem.
You have described the manufacturing and assembly for these garments as follows:
The woven fabrics, 100percent polyester; 66 percent polyester/34 percent rayon and 63 percent polyester/33 percent rayon/4 percent spandex are manufactured in China or other countries.
The fabric for the pocket lining is manufactured in China or Korea.
The sewing thread is made in Guatemala from yarns of Chinese or Korean origin.
The garments are cut, sewn and assembled in Guatemala.
The garments are packaged and exported directly to the U.S.
General Note 29, HTSUS, sets forth the criteria for determining whether a good is originating under the 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 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.
General Note 29 (n), Chapter 62, Chapter Rule 2
For purposes of determining whether a good of this chapter is originating, 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 that rule for that good.
The component that determines the classification is the 100 percent polyester fabric; 66 percent polyester/34 percent rayon and the 63 percent polyester/33 percent rayon/4 percent spandex woven fabric.
On August 7, 2008, The United States Trade Representative published a notice in the Federal Register. The notice established an effective date of August 15, 2008 for the amendments announced in Presidential Proclamation 8213, as modified by Proclamation 8272. Section A of the Annex to Presidential Proclamation 8213 modified the list of apparel items subject to the single transformation rule. Certain enumerated goods are only required to be cut or knit to shape, or both, and sewn or otherwise assembled in the CAFTA-DR beneficiary countries to qualify for preferential treatment. These items are not subject to GN29 Chapter 62 Chapter rules 3, 4 and 5. Annex A lists 6204.13.2010, HTSUS, as one of the items eligible for the single transformation rule.
GN 29(d)(i), HTSUS, also states in pertinent part,
A textile or apparel good containing elastomeric yarns in the component of the good that
determines the classification of the good shall be considered to be originating good only
if such yarns are wholly formed in the territory of the party to the Agreement.
Based upon the information provided, the garments composed of 100 percent polyester or 66 percent polyester/34 percent rayon woven fabric would qualify for DR-CAFTA preferential treatment. The garments composed of 100 percent polyester and of 66 percent polyester/34 percent rayon woven fabric will therefore be entitled to a free rate of duty under the DR_CAFTA upon compliance with all applicable laws, regulations, and agreements.
However, the garment composed of 63 percent polyester/33 percent rayon/4 percent spandex woven fabric would not qualify for preferential treatment because the elastomeric yarn is not wholly formed in the territory of the party to the Agreement.
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/.
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 Brenda Wade at (646) 733-3051.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division