CLA-2-61:OT:RR:NC:3:358
Emilia Arroyo
Jerry Leigh
7860 Nelson Road
Van Nuys, CA 91402
RE: The tariff classification and status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA), of a girl’s jacket from Guatemala.
Dear Ms. Arroyo:
In your letter dated June 26, 2009, you requested a ruling on the status of a girl’s knit jacket under the DR-CAFTA.
Style YJ1889 art H1006B is a girl’s” hoodie” style jacket. The article has a full front zipper opening, set-in long sleeves, a hood with faux fur lining, patch pockets at the waist with scoop openings, rib knit cuffs and a rib knit waistband. The garment front will have a prominent screen print design. The garment shell, except for the cuffs and waistband are made of finely knit 85% cotton, 15% polyester fabric that is brushed or finely napped on the inside. The cuffs and waistband are made of one by one rib knit cotton fabric. The faux fur hood lining is made of pile knit polyester fabric.
The applicable subheading for Style YJ1889 art H1006B will be 6102.20.0020, Harmonized Tariff Schedule of the United States (HTSUS), which provides for women’s or girls’ overcoats, carcoats, capes, cloaks, anoraks, (including ski-jackets), windbreakers and similar articles, knitted or crocheted, other than those of heading 6104, of cotton, girls’. The duty rate will be 15.9% 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 manufacturing operations for this garment are as follows:
The brushed knit cotton, polyester fabric for the body, hood and pockets is manufactured in Guatemala from U.S. and El Salvador yarn from U.S. fibers.
The cotton fabric for the rib knit cuffs and waistband is manufactured in Guatemala from U.S. and El Salvador yarn from U.S. fibers.
The pile knit polyester fabric for the hood lining is manufactured in Korea.
The fabric is cut, sewn and assembled into the finished garment in Guatemala.
The filament polyester sewing thread, used to assemble the components, is formed in Guatemala.
The screen print process to the front panels is applied in Guatemala.
The garments are exported directly from Guatemala to the U.S.
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.
General Note 29 (n), Chapter 61, 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. The component that determines the classification is the brushed knit cotton polyester fabric. Since the fabric is stated to be an originating material, it does not have to meet the terms of the tariff shift rule.
General Note 29 (n), Chapter 61, Chapter rule 3 states that:
Notwithstanding chapter rule 2 to this chapter, a good of this chapter containing fabrics of subheading 5806.20 or heading 6002 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.
The pile knit polyester fabric is classified in subheading 6001.21.0000.
General Note 29 (n), Chapter 61, Chapter rule 4 states that:
Notwithstanding chapter rule 2 to this chapter, a good of this chapter 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.
The sewing thread used to assemble the components is formed and finished in Guatemala.
Based on the facts provided, the goods described above qualify for DR-CAFTA preferential treatment, because they will meet the requirements of HTSUS General Note 29(b)(ii)(A). The goods will therefore be entitled to a free rate of duty under the DR-CAFTA upon compliance with all applicable laws, regulations, and agreements.
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 Bruce Kirschner at 646-733-3048.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division