CLA-2-62:OT:RR:NC:WA:356
Mr. Jay Reynolds
JP Reynolds Company, Inc.
101 SE 21st Street
Fort Lauderdale, FL 33316
RE: The tariff classification of men’s woven garments; Country of origin determination; 19 CFR 102.21 (c)(2); tariff shift; Marking; 19 U.S.C. 1304; Status under the United States – Morocco Free Trade Agreement Implementation Act (UMFTA).
Dear Mr. Reynolds:
This is in reply to your letter dated February 17, 2010, submitted on behalf of Fashionizer Spa Uniforms, LLC, concerning the tariff classification, country of origin determination, marking, and status under the United States - Morocco Free Trade Agreement Implementation Act for a men’s woven shirt and pair of pants from Morocco. As requested, your samples will be returned.
Style FSU-MTO-1-BL is a men’s shirt constructed from 63% cotton, 34% polyester, 3% spandex solid color, woven fabric. Style FSU-MTO-1-BL, which was submitted in size 40, has a spread collar with lapels, a left over right full front opening with a concealed placket and six button closures, a rear yoke, short sleeves with self-fabric cuffs, a slit in the outer cuff, and a straight, hemmed bottom with four inch long side slits.
Style FSU-MP-1-CR is a pair of men’s pants constructed from 63% cotton, 34% polyester, 3% spandex, solid color woven fabric. The pants have a flat waistband, a zippered fly front opening with a button closure on the waistband, two tabs at the center front waistband with four grommets and a laced closure; two elongated patch pockets below the waistband with slant openings, a patch pocket on the right rear panel, and hemmed legs.
CLASSIFICATION:
The applicable subheading for Style FSU-MTO-1-BL is 6205.20.2066, Harmonized Tariff Schedule of the United States (HTSUS), which provides for men’s or boys’ shirts: of cotton: other: other: other: other: men’s. The duty rate is 19.7% ad valorem.
The applicable subheading for Style FSU-MP-1-CR is 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.
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/.
COUNTRY OF ORIGIN - LAW AND ANALYSIS:
You state that the 63% cotton, 34% polyester, 3% spandex woven fabric will be sourced in several countries and will be sent to the Moroccan manufacturer to be cut into component parts, sewn and assembled into the finished garments. From Morocco, the goods will be shipped directly into the United States.
Section 334 of the Uruguay Round Agreements Act (codified at 19 U.S.C. 3592), enacted on December 8, 1994, provided rules of origin for textiles and apparel entered, or withdrawn from warehouse for consumption, on and after July 1, 1996. Section 102.21, Customs Regulations (19 C.F.R. 102.21), published September 5, 1995, in the Federal Register, implements Section 334 (60 FR 46188). Section 334 of the URAA was amended by Section 405 of the Trade and Development Act of 2000, enacted on May 18, 2000, and accordingly, section 102.21 was amended (68 Fed. Reg. 8711). Thus, the country of origin of a textile or apparel product shall be determined by the sequential application of the general rules set forth in paragraphs (c)(1) through (5) of Section 102.21.
Paragraph (c)(1) states that "The country of origin of a textile or apparel product is the single country, territory, or insular possession in which the good was wholly obtained or produced." As the subject merchandise is not wholly obtained or produced in a single country, territory or insular possession, paragraph (c)(1) of Section 102.21 is inapplicable.
Paragraph (c)(2) states that "Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1) of this section, the country of origin of the good is the single country, territory, or insular possession in which each of the foreign materials incorporated in that good underwent an applicable change in tariff classification, and/or met any other requirement, specified for the good in paragraph (e) of this section:"
Paragraph (e) in pertinent part states that "The following rules shall apply for purposes of determining the country of origin of a textile or apparel product under paragraph (c)(2) of this section":
HTSUS Tariff shift and/or other requirements
6201-6208 If the good consists of two or more component parts, a change to an assembled good of heading 6201 through 6208 from unassembled components, provided that the change is the result of the good being wholly assembled in a single country, territory, or insular possession.
Paragraph (b) (6) defines “wholly assembled” as:
The term “wholly assembled” when used with reference to a good means that all components, of which there must be at least two, preexisted in essentially the same condition as found in the finished good and were combined to form the finished good in a single country, territory, or insular possession. Minor attachments and minor embellishments (for example, appliques, beads, spangles, embroidery, buttons) not appreciably affecting the identity of the good, and minor subassemblies (for example, collars, cuffs, plackets, pockets) will not affect the status of a good as “wholly assembled” in a single country, territory, or insular possession.
The submitted garments consist of two or more parts. As all of the assembly operations occur in Morocco, the garments are considered “wholly assembled” in a single country, that is, Morocco. As per the terms of the tariff shift requirement, country of origin is conferred in Morocco.
MARKING:
The men’s shirt, Style FSU-MTO-1-BL, has a woven fabric label sewn into the center rear neckline that shows the brand name and garment size. A folded, woven fabric loop label is sewn into the inside lower left side seam that shows the brand name and fiber content on the front of the label and the country of origin and washing instructions on the back of the label. The country of origin, “Made in Morocco,” is in blue plain block letters on a white background. An extra button is sewn onto the back of the folded loop label that almost completely obscures the words “Made in Morocco.”
The men’s pants, Style FSU-MP-1-CR, have a woven fabric label sewn onto the center rear waistband that shows the brand name and garment size. A folded, woven fabric loop label is sewn below this label showing the brand name and fiber content on the front of the label and the country of origin and washing instructions on the back of the label. The country of origin, “Made in Morocco,” is in blue plain block letters on a white background.
The marking statute, section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless excepted, every article of foreign origin (or its container) imported into the United States shall be marked in a conspicuous place as legibly, indelibly and permanently as the nature of the article (or its container) will permit, in such a manner as to indicate to the ultimate purchaser in the U.S. the English name of the country of origin of the article.
As provided in section 134.41 (b), Customs Regulations (19 CFR 134.41 (b)), the country of origin marking is considered conspicuous if the ultimate purchaser in the U.S. is able to find the marking easily and read it without strain. Section 134.1(d), Customs Regulations (19 CFR 134.1(d)) defines the “ultimate purchaser” generally as the last person in the United States who will receive the article in the form in which it is imported.
In T.D. 54640(6), Customs determined that country of origin marking appearing on the inside center of the neck of shirts, blouses, coats, sweaters, etc., mid-way between the shoulder seams or in that immediate area, is conspicuous within the meaning of 19 U.S.C. 1304. In T.D. 71-264(3), it was determined that trousers, slacks, jeans and similar wearing apparel must be marked by means of a permanent label affixed in a conspicuous location on the garment, such as the inside of the waistband.
In the instant situation, the sewn in label located in the lower side seam of the men’s shirt is not easily or readily visible and accessible to the ultimate purchaser upon a casual examination of the garment. Following T.D. 54640(6), the marking is not conspicuous and does not constitute an acceptable country of origin marking in satisfaction of the marking requirements of 19 U.S.C. 1304 and 19 CFR Part 134. In addition, the extra button, wherever it is attached, must not obscure the country of origin marking on the garment.
For both the shirt and the pants, the marking, “Made in Morocco,” is located on the back of the folded loop label and is not visible unless the label is turned over. The back of the folded label is not a conspicuous location for the placement of the country of origin marking and does not constitute an acceptable country of origin marking in satisfaction of the marking requirements of 19 U.S.C. 1304 and 19 CFR Part 134.
We also note that the fiber content on the submitted garments shows the trade name “Lycra” and does not show the generic name of the fiber used in the garment. Textile fiber products imported into the United States must be labeled in accordance with the Textile Fiber Products Identification Act (15 USC 70 through 70k) and the rules promulgated thereunder by the Federal Trade Commission. We cannot issue a ruling involving the regulations of another agency. Therefore, we suggest you contact the Federal Trade Commission, Division of Enforcement, 600 Pennsylvania Avenue, N.W., Washington, DC 20580 for advice concerning the requirements of this Act. Information can also be found at the FTC website www.ftc.gov (click on “For Business” and then on “Textile, Wool, Fur”).
ELIGIBILITY UNDER THE UNITED STATES – MOROCCO FREE TRADE AGREEMENT IMPLEMENTATION ACT (UMFTA).
The manufacturing operations for this garment are as follows:
In India, the cotton, polyester and spandex yarns are woven into fabric and shipped to Morocco.
In Morocco, the fabric is cut, sewn and assembled into the finished garments.
The garments are exported directly from Morocco to the U.S.
General Note 27, HTSUS, sets forth the criteria for determining whether a good is originating under the UMFTA. General Note 27(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), (e), (g) and (h) thereof, a good imported into the United States is eligible for treatment as an originating good of a UMFTA country under the terms of this note only if –
(i) the good is a good wholly the growth, product or manufacture of Morocco or of the United States, or both;
(ii) the good is a new or different article of commerce that has been grown, produced or manufactured in the territory of Morocco or of the United States, or both, and that falls in a heading or subheading of the tariff schedule that is not covered by the product-specific rules of subdivision (h) of this note; and the sum of--
(A) the value of each material produced in the territory of Morocco or of the United States, or both;
(B) the direct costs of processing operations performed in the territory of Morocco or the United Sates, or both,
is not less than 35 percent of the appraised value of the good at the time the good is entered into the territory of the United States; or
(iii) the good falls in a heading or subheading covered by a product-specific rule in subdivision (h) of this note and—
(A)(1) each of the nonoriginating materials used in the production of the good undergoes an applicable change in tariff classification specified in such subdivision (h); or
(2) the good otherwise satisfies the requirements specified in subdivision (h) of this note; and
(B) the good meets any other requirements specified in this note;
and is imported directly into the territory of the United States from the territory of Morocco and meets all other applicable requirements of this note. For purposes of this note, the term “good” means any merchandise, product, article or material.
General Note 27(h) Chapter 62, Chapter Rule 3 states,
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 for both styles is the cotton/polyester/spandex fabric manufactured in India. The nonoriginating fabric would be classified in either heading 5210 or 5211, HTSUS.
For Style FSU-MTO-1-BL, classified in subheading 6205.20, GN 12/62.30 requires:
A change to subheading 6205.20 through 6205.30 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, 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 Morocco or of the United States, or both.
The cotton/polyester/spandex fabric does not meet the terms of the tariff shift rule.
For Style FSU-MP-1-CR, classified in subheading 6203.42, GN 12/62.16 requires:
A change to subheading 6203.41 through 6203.49 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, 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 Morocco or of the United States, or both.
The cotton/polyester/spandex fabric does not meet the terms of the tariff shift rule.
GN 27(e)(i), HTSUS, also states in pertinent part,
A textile or apparel good containing elastomeric yarns in the component of the good that determines the classification of the good shall be considered to be originating good only if such yarns are wholly formed in the territory of the Morocco or of the United States.
The spandex yarn, used in the production of the fabric, has not been formed in one of the parties to the Agreement.
The merchandise does not qualify for preferential treatment under the UMFTA because none of the above requirements are met. You have suggested that the garments may be subject to a free rate of duty classified under 9912.99.20
U.S. Note 64 of heading 9912 identifies the apparel goods which are subject to the tariff treatment set forth in subheading 9912.99.20 by subheading and description. The subject garments fall within the description of U.S. Note 64(a). The garments are eligible for TPL status up to the quantity specified in subheading 9912, U.S. Note 64(b) and provided the good is imported directly from Morocco.
The analysis set forth above applies only to the specific factual situation and merchandise identified in the ruling request. This position is clearly set forth in section 19 CFR 177.9(b)(1). This section states that a ruling letter, either directly, by reference, or by implication, is accurate and complete in every material respect.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177). Should it be subsequently determined that the information furnished is not complete and does not comply with 19 CFR 177.9(b)(1), the ruling will be subject to modification or revocation. In the event there is a change in the facts previously furnished, this may affect the determination of country of origin and trade agreement eligibility. Accordingly, if there is any change in the facts submitted to Customs, it is recommended that a new ruling request be submitted in accordance with 19 CFR 177.2.
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 concerning questions on classification, country of origin and marking or National Import Specialist Rosemarie Hayward at 646-733-3064 concerning questions on eligibility under the United States – Morocco Free Trade Agreement Implementation Act.
Sincerely,
Robert B. Swierupski
Director
National Commodity
Specialist Division