CLA-2-56:OT:RR:NC:N3:351
Alphonse Tshiboyi
Hanesbrands Inc.
1000 East Hanes Mill Road
Winston-Salem, NC 27105
RE: The tariff classification and status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA), of gimped yarns from Honduras.
Dear Mr. Tshiboyi:
In your letter dated Sept. 13, 2010, you requested a ruling on the status of elastomeric gimped yarns from Honduras under the DR-CAFTA.
You submitted a sample of a yarn called Sarla Conventional Double Covered Yarn. It is 49.7% rubber, 50.3% polyester. The rubber core is gimped by the polyester yarns in both the right- and left-handed directions (hence, “double covered”). The rubber is from Thailand, the polyester is from India, and the yarn is manufactured in Honduras. The sample will be returned as requested.
The applicable subheading for the gimped yarns will be 5606.00.0010, Harmonized Tariff Schedule of the United States (HTSUS), which provides for gimped yarn, containing elastomeric filaments. The rate of duty will be 8% 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 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.
GN 29, Chapter 56 Rule 1 requires the following tariff shift:
A change to headings 5601 through 5609 from any other chapter, except from headings 5111 through 5113, 5204 through 5212, or 5310 through 5311, or chapters 54 through 55 [emphasis added].
We assume from your letter that the polyester fibers are manufactured in India and the polyester yarns are spun in India. Since the non-originating polyester fibers and yarns are classified in either chapter 54 or 55 they will not meet the terms of the above tariff shift.
Based on the facts provided, the gimped yarn manufactured in Honduras from Indian and Thai components does not qualify for DR-CAFTA preferential treatment, because it does not meet the requirements of HTSUS General Note 29(b)(ii)(A).
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 Mitchel Bayer at (646) 733-3102.
Should you wish to request an administrative review of this ruling, submit a copy of this ruling and all relevant facts and arguments within 30 days of the date of this letter, to the Director, Commercial Rulings Division, U.S. Customs and Border Protection, Regulations & Rulings, 799 9th Street N.W. - 7th floor, Washington, DC 20229-1177.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division