CLA-2-62:OT:RR:NC:WA:356
Ms. Rebecca Cheung
Macy’s Merchandising Group
11 Penn Plaza
New York, NY 10001
RE: The tariff classification and status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA) of certain men’s shirts, pants, and pajamas from Nicaragua.
Dear Ms. Cheung:
In your letter dated April 10, 2008, you requested a ruling on the status of certain men’s garments imported from Nicaragua under DR-CAFTA. Samples of the garments were submitted with your inquiry and will be returned, as requested.
Style FF53A consists of a men’s knit shirt and a pair of woven lounge pants. The Henley-style shirt is constructed from 100% cotton, 1x1 rib knit fabric that measures 22 stitches per linear centimeter counted in the horizontal direction and 16 stitches per linear centimeter counted in the vertical direction. The shirt has a Henley neckline; a partial front opening with three button closures; long sleeves with rib knit cuffs; a woven fabric sweat patch at the rear neckline; and a straight, hemmed bottom. The lounge pants are constructed from 100% cotton, flannel fabric and have a tunnel elastic waistband with an outside drawstring; a fly front opening with two button closures; side seam pockets; and hemmed legs.
The shirt and the pants will be folded and placed in an open cardboard gift box for retail sale. The cardboard gift box has a flap that can be folded over and secured with elastic for gift presentation. The open gift box will allow the retail customer access to the shirt and pants for examination of the garments. Although you refer to Style FF53B as sleepwear, the Henley-style shirt and flannel pants are considered multi-use garments, designed for wear in a variety of informal situations in and around the home. As such, the garments are not classified as sleepwear, which is limited to garments designed for wear only to bed.
Section XI, Note 14, HTSUS, states that, unless the context requires otherwise, textile garments of different headings are to be classified in their own headings even if put up in sets for retail sale.
Consequently, the applicable subheading for the shirt of Style FF53A will be 6105.10.0010, Harmonized Tariff Schedule of the United States, (HTSUS), which provides for: men’s or boys’ shirts, knitted or crocheted: of cotton: men's. The duty rate is 19.7% ad valorem.
The applicable subheading for the pants of Style FF53A will be 6203.42.4016, Harmonized Tariff Schedule of the United States (HTSUS), which provides for men’s or boys’ … trousers, bib and brace overalls, breeches and shorts: of cotton: other: other: trousers and breeches: men’s: other. The duty rate is 16.6% ad valorem.
Style FF53B is a pair of men’s pajamas consisting of a knit Henley-style top and a pair of woven pants. The pajama top is constructed from 100% cotton, 1x1 rib knit fabric and has a Henley neckline; a partial front opening with three button closures; long sleeves with rib knit cuffs; a woven fabric sweat patch at the rear neckline; and a straight, hemmed bottom. The pants are constructed from 100% cotton, woven flannel fabric with two or more colors in the warp and/or the filling. The pants have a tunnel elastic waistband with an outside drawstring; an open, unsecured fly with no means of closure; side seam pockets; and hemmed legs. The pajama top and bottom will be folded together, boxed and imported in a cardboard gift box for retail sale as a two-piece sleepwear set.
Since pajamas that are constructed of both knit and woven components are considered composite goods, and since each component is equally important to the good, classification is based upon General Rule of Interpretation 3 (c), which requires classification under the heading that occurs last in numerical order of the headings which merit equal consideration. As the pajamas may be classified under headings 6107, HTS, or 6207, HTS, and heading 6207, HTS, appears last in numerical order, that is the heading under which Style FF53B is classified.
Consequently, the applicable subheading for Style FF53B will be 6207.21.0010, Harmonized Tariff Schedule of the United States (HTSUS), which provides for men's or boys’…pajamas: of cotton: with two or more colors in the warp and/or the filling: men’s. The duty rate is 8.9% 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/.
The shirt of Style FF53A falls within textile category designation 338 and the pants of Style FF53A fall within textile category designation 347. Style FF53B falls within textile category designation 351. With the exception of certain products of China, quota/visa requirements are no longer applicable for merchandise which is the product of World Trade Organization (WTO) member countries. The textile category number above applies to merchandise produced in non-WTO member-countries. Quota and visa requirements are the result of international agreements that are subject to frequent renegotiations and changes. To obtain the most current information on quota and visa requirements applicable to this merchandise, we suggest you check, close to the time of shipment, the “Textile Status Report for Absolute Quotas” which is available on our web site at www.cbp.gov. For current information regarding possible textile safeguard actions on goods from China and related issues, we refer you to the web site of the Office of Textiles and Apparel of the Department of Commerce at otexa.ita.doc.gov.
Status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA)
You state that the knit tops and the flannel bottoms of Styles FF53A and Style FF53B are made from foreign fabric that is cut, sewn and wholly assembled into finished garments in Nicaragua and then packed and shipped directly to the United States from Nicaragua.
On April 1, 2006, Nicaragua became eligible for DR-CAFTA benefits.
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.
Re: Style FF53A:
General Note 29 (n) 61.25 requires:
A change to headings 6105 through 6106 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) 62.15 requires:
A change to subheadings 6203.41 through 6203.49 from any other chapter, except from headings 5111 through 5113, 5204 through 5212, 5310 through 5311, chapter 54, headings 5508 through 5516, 5801 through 5802 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.
The knit fabric used in the construction of the shirt of Style FF53A is classified in heading 6006. The woven fabric used in the construction of the pants of Style FF53A is classified in heading 5208.
Style FF53A does not qualify for preferential treatment under DR-CAFTA because (a) it will not be wholly obtained or produced entirely in the territory of one or more DR-CAFTA countries; (b) one or more of the non-originating materials used in the production of the goods will not undergo the change in tariff classification required by General Note 29(n)/61.25, HTSUS (for the Henley-style shirt) and General Note 29(n)/62.15, HTSUS (for the lounge pants) and (c) it will not be produced entirely in the territory of one or more of the DR-CAFTA parties exclusively from originating materials.
U.S. Note 15 of Chapter 99, subchapter XV of the HTSUS, states:
The rate of duty provided for in subheading 9915.61.01 in the "Special" subcolumn of rates of duty column 1 shall apply to goods of Nicaragua, in an aggregate quantity not to exceed the annual total quantity set forth in subdivision (c) of this note. Subheading 9915.61.01 applies to the cotton or man-made fiber apparel goods described in this note if the goods meet the applicable conditions for preferential tariff treatment under general note 29 to the tariff schedule, other than the condition that they be originating goods and are both cut or knit to shape, and sewn or otherwise assembled, in the territory of Nicaragua.
The apparel goods of cotton or of man-made fibers, or subject to cotton or man-made fiber restraints, enumerated herein and provided for in chapters 61 or 62 shall receive the tariff treatment set forth in subheading 9915.61.01. For purposes of this note, an apparel good must be classifiable in a tariff provision enumerated in the first column below and be described opposite such provision:
The shirt and the pants of Style FF53A are both cut and sewn in Nicaragua and HTSUS 6105.10.00 and HTSUS 6203.42.40 are enumerated in the note. Therefore, the shirt and the pants of Style FF53A may be subject to a reduced rate of duty based upon the temporary tariff provisions found in chapter 99, subchapter XV, U.S. Note 15 of the HTSUS.
Re: Style FF53B:
General Note 29 (n), Chapter 62, Chapter rule 2 states that:
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 the rule for that good.
General Note 29 (n), Chapter 62, Chapter rule 3 states that:
Notwithstanding Chapter rule 2 to this chapter, a good of this chapter, other than a good of headings 6207 through 6208 (for boxers, pajamas, and nightwear only), brassieres of subheadings 6212.10 or girls’ dresses of tariff items 6204.42.30 (other than corduroy), 6204.43.40 or 6204.44.40, containing fabrics of heading 6002 or subheading 5806.20 shall be considered originating only if such fabrics are both formed from yarn and finished in the territory of one or more of the parties to the Agreement..
General Note 29 (n), Chapter 62, Chapter rule 4 states that:
Notwithstanding Chapter rule 2 to this chapter, a good of this chapter, other than a good of headings 6207 through 6208 (for boxers, pajamas, and nightwear only), brassieres of subheadings 6212.10 or girls’ dresses of tariff items 6204.42.30 (other than corduroy), 6204.43.40 or 6204.44.40, 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 or more of the parties to the Agreement..
General Note 29 (n) 62.33 requires:
A change to pajamas and nightwear of subheadings 6207.21 or 6207.22, tariff items 6207.91.30 or 6207.92.40 or subheadings 6208.21 or 6208.22 from any other chapter, 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.
The woven pajama bottoms determine the classification of Style FF53B. The pajama bottoms are cut and sewn in Nicaragua from woven fabric of Chapter 52, HTSUS.
Style FF53B qualifies for preferential treatment under DR-CAFTA because it meets the requirements of General Note 29 (n), Chapter 62, Chapter rule 2 and General Note 29(n)/62.33. General Note 29 (n), Chapter 62, Chapter rules 3 and 4 do not apply since Style FF53B is classified as pajamas in heading 6207.
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 Mary Ryan at 646-733-3271.
Sincerely,
Robert B. Swierupski
Director,
National Commodity Specialist Division