CLA-2-61:OT:RR:NC:TA:348
Sandy Tovar
CST, Inc.
500 Lanier Avenue
W. Suite 901
Fayetteville, GA 30214
RE: The tariff classification and status under Haiti Hemispheric Opportunity through Partnership Encouragement Act of 2008 (HOPE II) of men’s pullovers from Haiti and Dominican Republic
Dear Ms. Tovar:
In your letter dated January 7, 2009, on behalf of your client, McMurray Fabrics, you requested a tariff classification ruling.
Style VMF1315 is a men’s pullover garment constructed from 95% polyester, 5% elastane, finely knit, jersey fabric that measures 30 stitches per two centimeters counted in the horizontal direction. The garment is cut and sewn and has a self-fabric crew neckline; short, hemmed, raglan sleeves; a screen print design on the center chest; large heat seals on the upper left chest and on the upper back panel; and a straight, hemmed bottom.
The applicable subheading for Style VMF1315 will be 6110.30.3053, 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: other: other: men’s or boy’s: other. The rate of duty is 32% ad valorem.
Your request also concerns the eligibility for preferential duty treatment for the men’s pullovers under HOPE II. You have provided the following scenarios.
In scenario one, fabric from China will be shipped to the Dominican Republic. The fabric will be cut-to-shape and a screen print will be applied to the fabric. The cut-to-shape pieces will be exported to Haiti for assembly into a finished garment. The finished garment will be quality checked and packaged in either Haiti or Dominican Republic. The men’s pullover will be exported directly from Haiti or Dominican Republic to the United States.
In scenario two, fabric from China will be shipped to Haiti. The fabric will be cut-to-shape and a screen print will be applied to the fabric. The cut-to-shape pieces will be assembled into a finished garment in Haiti. The finished garment will be quality checked and packaged in either Haiti or Dominican Republic. The men’s pullover will be exported directly from Haiti or Dominican Republic to the United States.
In Scenario three, foreign yarns are knit into fabric in the U.S. or the Dominican Republic. The fabric will be cut-to-shape and a screen print will be applied to the fabric in Dominican Republic or Haiti. The cut-to-shape pieces will be exported to Haiti for assembly into a finished garment. The finished garment will be quality checked and packaged in either Haiti or Dominican Republic. The men’s pullover will be exported directly from Haiti or Dominican Republic to the United States.
Based upon the classification provided and the manufacturing scenarios described above the applicable subheading to determine eligibility under HOPE II would be 9820.61.35, HTSUS, which provides for:
Apparel articles of chapter 61 described in U.S. note 6(j) to this subchapter and imported directly from Haiti or the Dominican Republic during any 1-year period specified in U.S. Note 6(j)(iii) to this subchapter, subject to the limitations provided in such U.S. note 6(j)(iii)
U.S. Note 6(j), Subchapter XX, Chapter 98, HTSUS, provides as follows:
(i) Apparel articles classifiable under Chapter 61 of the tariff schedule that is wholly assembled, or knit to shape in Haiti from any combination of fabrics, fabric components, components knit-to-shape or yarns and is imported directly from Haiti or Dominican Republic, subject to subdivisions (j)(ii), (j)(iii) and (j)(iv) of this note, without regard to source of the fabric, fabric components, components knit-to-shape or yarns from which the article is made.
(ii) the preferential treatment described in subdivision (j)(i) of this note shall not apply to the following:
the following apparel articles of cotton, for men or boys, that are classifiable under subheading 6109.10.00 of the tariff schedule:
all white T-shirts, with short hemmed sleeves and hemmed bottom with crew or round neckline or with V-neck and with a mitered seam at the center of the V, and without pockets, trim or embroidery;
all white singlets, without pockets, trim or embroider;
other T-shirts, but not including thermal undershirts.
T-shirts for men or boys that are classifiable under subheading 6109.90.10
The following apparel articles of cotton, for men or boys, that are classifiable under subheading 6110.20.20 of the tariff schedule;
Sweatshirts; or
Pullovers, other than sweaters, vests or garments imported as part of playsuits; or
Sweatshirts for men or boy’s, of man-made fibers and containing less than 65 percent by weight of man-made fibers, that are classifiable under subheading 6110.30.30 of the tariff schedule.
(iii) The preferential treatment described in subdivision (j)(i) of this notes shall be extended, in the 1-year period beginning October 1, 2008, and in each of the 9 succeeding 1-year periods, to not more than 70,000,000 square meter equivalents of apparel articles described in such subdivision.
(iv) Any apparel that qualifies for preferential treatment under subdivisions (g) through (i) or (k) through (p), inclusive, of this note or any other provision of the tariff schedule shall not be subject to, or included in the calculation of, the quantitative limitation under subdivision (j)(iii) of this note.
Since the man-made fiber pullover is wholly assembled in Haiti and is imported directly from Haiti or the Dominican Republic, it is eligible for preferential treatment under HOPE II. However, it is subject to the quantitative limitations set forth in U.S. Note 6(j), Subheading XX, Chapter 98, HTSUS.
Scenario four, U.S. yarns or yarns from a DR-CAFTA country are knit into fabric in the U.S. or the Dominican Republic. The fabric will be cut-to-shape and a screen print will be applied to the fabric in Dominican Republic or Haiti. The cut-to-shape pieces will be exported to Haiti for assembly into a finished garment. The finished garment will be quality checked and packaged in either Haiti or Dominican Republic. The men’s pullover will be exported directly from Haiti or Dominican Republic to the United States.
Based upon the classification provided and the manufacturing scenario described above the applicable subheading to determine eligibility under HOPE II would be 9820.62.25, HTSUS, which provides for:
Apparel articles described in U.S. note 6(o) to this subchapter and imported directly from Haiti or the Dominican Republic.
U.S. Note 6(o), Subchapter XX, Chapter 98, HTSUS, provides as follows:
The preferential treatment provided under 9820.62.25 shall be extended to apparel articles wholly assembled, or knit-to-shape, in Haiti from any combination of fabrics, fabric components, components knit-to-shape or yarns and imported directly from Haiti or the Dominican Republic, without regard to the source of the fabric, fabric components, components knit-to-shape or yarns from which the articles are made, if such apparel articles are accompanied by an earned income allowance certificate that reflects the amount of credits equal to the total square meter equivalents of such apparel articles, in accordance with the program established by the Secretary of Commerce pursuant to section 15402 of Public Law 110-246. For purposes of determining the quantity of square meter equivalents under this subdivision, the conversion factors listed in “Correlation: U.S. Textile and Apparel Industry Category System with Harmonized Tariff Schedule of the United States, 2008” or its successor publications of the Untied States Department of Commerce shall apply.
Since the garment is wholly assembled in Haiti and is imported directly from Haiti or the Dominican Republic, it may be eligible for preferential treatment under HOPE II. However, the Department of Commerce, Office of Textiles and Apparel is the agency charged with establishing the Earned Import Allowance program and issuing certificates thereunder. Questions regarding the Earned Import Allowance program should be direct to Office of Textiles and Apparel via email at [email protected] or by phone to (202) 482-3400.
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 Rosemarie Hayward at (646) 733-3064.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division