CLA-2-55:OT:RR:NC:N3:351
Mr. Michael R. Spano
Michael R. Spano & Company Incorporated
190 McKee Street
Floral Park, NY 11001
RE: The tariff classification and status under the United States-Peru Trade Promotion Agreement Implementation Act (Peru TPAIA), of yarns from Peru.
Dear Mr. Spano:
In your letter dated September 30, 2011 you requested a ruling on the status of yarn from Peru under the Peru TPAIA on behalf of your client, Berroco Incorporated of North Smithfield, RI.
You supplied our office with three skeins of yarns. The yarns are identified as Vintage, Vintage Chunky and Vintage DK. The fiber content of all three yarns is listed as 50% acrylic, 40% wool and 10% nylon. Each style is put up for retail sale in 100-gram skeins.
The yarns are manufactured in Peru from materials of Peruvian origin except the nylon staple fibers, which are imported into Peru from Italy.
The applicable subheading for Vintage, Vintage Chunky and Vintage DK will be 5511.20.0000, HTSUS, which provides for “Yarn (other than sewing thread) of man-made staple fibers, put up for retail sale: of synthetic staple fibers, containing 85 percent or more by weight of such fibers: acrylic.” The general rate of duty will be 7.5 percent ad valorem.
General Note (GN) 32, HTSUS, sets forth the criteria for determining whether a good is originating under the PERU TPAIA. GN 32(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 Peru, the United States, or both;
(ii) the good was produced entirely in the territory of Peru, the United States, or both, 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 Peru, the United States, or both, exclusively from materials described in subdivision (b)(i) or (b)(ii) of this note.
The required tariff shift for yarns of heading 5511 is as follows:
Chapter 55.
1. A change to headings 5501 through 5511 from any other chapter, except from headings 5201 through 5203, 5401 through 5402, subheading 5403.20, 5403.33 through 5403.39, 5403.42 through 5403.49 or headings 5404 through 5405 [emphasis added].
You state in your letter that the nylon staple fibers are of Italian origin. Nylon staple fibers are classified in heading 5506. The tariff shift excludes any components classifiable in Chapter 55.
The yarns do not meet the terms of the tariff shift.
Based on the facts provided, the goods described above do not qualify under the Peru TPAIA because none of the above requirements of GN 32, HTSUS, are met.
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 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 20232-1177.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division