CLA-2-61:OT:RR:NC:TA:358
Ms. Nikki Adams
Fruit of the Loom
One Fruit of the Loom Drive
P.O. Box 90015
Bowling Green, KY 42102-9015
RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of boys’ knitwear; Article 509
Dear Ms. Adams:
In your letter dated May 9, 2008, you requested a ruling on the status of certain boys’ knit garments under the NAFTA.
You have submitted three samples representing six styles of boys’ knitwear. The first sample, styles 973B and 973BR is a pair of boy’s pull-on, elastic waist sweat pants. The second sample, styles 562B and 562BR is a boy’s long sleeve pullover sweatshirt. The third sample, style 996Y and 996YR is a boy’s hooded, long sleeve pullover sweatshirt. The garments are made of finely knit 40% cotton, 60% polyester fabric that is napped on the inside.
You state that the yarn used to make the garment fabric is spun in the United States from 40% U.S. origin cotton, 40% U.S. origin polyester staple fibers and 20% black polyester staple fibers originating in a non-NAFTA country. The U.S. spun yarn will be shipped to a U.S. fabric manufacturer where it will be knitted into fabric. You further state that the fabric will be shipped to Mexico where it will be cut and sewn and wholly assembled into the finished good.
The applicable tariff provision for the boy’s sweatpants, styles 973B and 973BR will be 6103.43.1540, Harmonized Tariff Schedule of the United States (HTSUS), which provides for men’s or boys’ trousers, breeches and shorts, of synthetic fibers, other, trousers and breeches, boys’, other. The general rate of duty will be 28.2% ad valorem.
The applicable tariff provision for the boy’s sweatshirts, styles 562B, 562BR, 996Y and 996YR will be 6110.30.3040 , Harmonized Tariff Schedule of the United States (HTSUS), which provides for sweaters, pullovers, sweatshirts, waistcoats (vests) and similar articles, knitted or crocheted, of man-made fibers, other, other, sweatshirts, men’s or boys’. The general rate of duty will be 32% 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 12(b), HTSUS, sets forth the criteria for determining whether a good is originating under the NAFTA. General Note 12(b), HTSUS, (19 U.S.C. § 1202) states, in pertinent part, that
For the purposes of this note, goods imported into the customs territory of the United States are eligible for the tariff treatment and quantitative limitations set forth in the tariff schedule as "goods originating in the territory of a NAFTA party" only if--
(i) they are goods wholly obtained or produced entirely in the territory of Canada, Mexico and/or the United States; or
(ii) they have been transformed in the territory of Canada, Mexico and/or the United States so that--
(A) except as provided in subdivision (f) of this note, each of the non-originating materials used in the production of such goods undergoes a change in tariff classification described in subdivisions (r), (s) and (t) of this note or the rules set forth therein, or
(B) the goods otherwise satisfy the applicable requirements of subdivisions (r), (s) and (t) where no change in tariff classification is required, and the goods satisfy all other requirements of this note; or
(iii) they are goods produced entirely in the territory of Canada, Mexico and/or the United States exclusively from originating materials; or
(iv) they are produced entirely in the territory of Canada, Mexico and/or the United States but one or more of the nonoriginating materials falling under provisions for "parts" and used in the production of such goods does not undergo a change in tariff classification because--
(A) the goods were imported into the territory of Canada, Mexico and/or the United States in unassembled or disassembled form but were classified as assembled goods pursuant to general rule of interpretation 2(a), or
(B) the tariff headings for such goods provide for and specifically describe both the goods themselves and their parts and is not further divided into subheadings, or the subheadings for such goods provide for and specifically describe both the goods themselves and their parts,
provided that such goods do not fall under chapters 61 through 63, inclusive, of the tariff schedule, and provided further that the regional value content of such goods, determined in accordance with subdivision (c) of this note, is not less than 60 percent where the transaction value method is used, or is not less than 50 percent where the net cost method is used, and such goods satisfy all other applicable provisions of this note.
With respect to the boys’ sweatpants, General Note 12 (t)/61.12 to the Harmonized Tariff Schedule of the United States (HTSUS), the rule covering this merchandise, states:
A change to subheadings 6103.41 through 6103.49 from any other chapter, except from headings 5106 through 5113, 5204 through 5212, 5307 through 5308 or 5310 through 5311, chapter 54, or headings 5508 through 5516 or 6001 through 6006, provided that the good is both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or more of the NAFTA parties.
As the non-originating black polyester staple fibers are classified in heading 5503, the sweatpants meet the change in tariff classification required by General Note 12(t)/61.12, HTSUS. Thus, the sweatpants qualify for preferential treatment under this note.
With respect to the boys’ sweatshirts, General Note 12 (t)/61.35 to the Harmonized Tariff Schedule of the United States (HTSUS), the rule covering this merchandise, states:
A change to subheadings 6109 through 6111 from any other chapter, except from headings 5106 through 5113, 5204 through 5212, 5307 through 5308 or 5310 through 5311, chapter 54, or headings 5508 through 5516 or 6001 through 6006, provided that the good is both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or more of the NAFTA parties.
As the non-originating black polyester staple fibers are classified in heading 5503, the sweatshirts meet the change in tariff classification required by General Note 12(t)/61.35, HTSUS. Thus, the sweatshirts qualify for preferential treatment under this note.
The boy’s sweatpants, styles 973B and 973BR, and boys’ sweatshirts, styles 562B, 562BR, 996Y and 996YR qualify for preferential treatment under the NAFTA because the requirements in General Note 12(b) HTSUS for determining whether a good is originating under the NAFTA are met.
This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 C.F.R. 181).
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 Bruce Kirschner at (646) 733-3048.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division