CLA-2-62:OT:RR:NC:TA:361
Mr. Jay Reynolds
JP Reynolds Company Inc.
101 SE 21st Street
Fort Lauderdale, FL 33316
RE: Classification and country of origin determination for women’s woven pants and blouses; 19 CFR 102.21(c)(2); eligibility for preferential treatment under the Morocco tariff preference level (TPL); General Note 27, HTSUS; marking; 19U.S.C. 1304
Dear Mr. Reynolds:
This is in reply to your letter dated February 17, 2010 requesting a classification, country of origin and TPL status determination for women’s pants and blouses on behalf of your client Fashionizer Spa Uniforms LLC.
FACTS:
The submitted sample, style FSU-TU-3-BL, is a woman’s blouse constructed from 63 percent cotton, 34 percent polyester and 3 percent spandex woven fabric. The pullover features short sleeves, a V-neckline, a side zipper closure and a hemmed bottom.
The submitted sample, style FSU-TU-12-NY, is a woman’s blouse constructed from 100 percent polyester woven fabric. The pullover features short sleeves, a V-neckline and an empire waist. The garment also features a contrasting colored attached tie belt at the waist and a fly-away front and a side zipper closure.
The submitted sample, style FSU-FP-3-CR, is a pair of women’s pants constructed from 63 percent cotton, 34 percent polyester and 3 percent spandex woven fabric. The pants features a wide waistband, a left side opening with a zipper closure, a pocket on the right seam and an inside button and hemmed wide leg openings.
The submitted sample, style FSU-FP-4-GR, is a pair of women’s pants constructed from 65 percent polyester and 35 percent cotton woven fabric. The pants features a wide waistband, a left side opening with a zipper closure and an inside button and hemmed bootleg leg openings.
The submitted sample, style FSU-FP-5-NY, is a pair of women’s pants constructed from 100 percent polyester woven fabric. The pants feature an elasticized waistband and hemmed wide leg openings.
You state the fabric is sourced in various countries. The buttons, zippers and thread are produced in Morocco. The elastomeric yarn is produced in India. The fabric is cut, sewn and assembled into garments in Morocco.
The samples are being returned.
ISSUE:
What are the classification, country of origin and Morocco TPL status of the subject merchandise?
CLASSIFICATION:
The applicable subheading for style FSU-TU-3-BL will be 6206.30.3041, Harmonized Tariff Schedule of the United States (HTSUS), which provides for women’s or girls’ blouses, shirts and shirt-blouses: of cotton: other: other: other: women’s. The duty rate will be 15.4% ad valorem.
The applicable subheading for style FSU-TU-12-NY will be 6206.40.3030, Harmonized Tariff Schedule of the United States (HTSUS), which provides for women’s or girls’ blouses, shirts and shirt-blouses: of man-made fibers: other: other: other: women’s. The duty rate will be 26.9% ad valorem.
The applicable subheading for style FSU-FP-3-CR will be 6204.62.4021, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Women’s trousers (other than swimwear): Of cotton: Other: Other: Other: Other: Trousers: Women’s: Other. The duty rate will be 16.6% ad valorem.
The applicable subheading for styles FSU-FP-4-GR and FSU-FP-5-NY will be 6204.63.3510, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Trousers…woven: Of synthetic fibers: Trousers: Women’s. The duty rate will be 28.6% 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: 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
(1) 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.
The term wholly assembled is defined in 19CFR 102.21(b)(6) as follows:
6) Wholly assembled. 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, appliqués, 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.
All five styles are not knit to shape, and consist of two or more components. As all of the assembly operations occur in Morocco, the garments are considered "wholly assembled" in a single country, that is, Morocco. As the terms of the tariff shift requirement are met, (c)(2) is applicable.
UNITED STATES-MOROCCO FREE TRADE AGREEMENT:
General Note (GN) 27, HTSUS, sets forth the criteria for determining whether a good is originating under the UMFTA. GN 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, 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, and
(B) the direct costs of processing operations performed in the territory of Morocco or the United States, 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 subdivision (h) of this note; 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. For purposes of this note, the term “good” means any merchandise, product, article or material.
For goods classified in heading 6206, GN 27/62.32 states:
A change to headings 6206 through 6210 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.
For goods classified in heading 6204, GN 27/62.28 states:
A change to subheadings 6204.61 through 6204.69 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, 5801through 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.
GN 27(e)(i) Textile and apparel articles 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 for styles FSU-TU-3-BL and FSU-FP-3-CR, has not been formed in one of the parties to the Agreement.
GN 27(b)(i) is not applicable for all styles because the fabric is produced in a nonoriginating country.
Insufficient information was supplied to make a determination as to whether General Note 27(b)(ii) is applicable.
GN 27 (b)(iii) is not applicable for style FSU-TU-3-BL as it does not satisfy the requirements of the tariff shift and General Note 27(e)(i).
GN 27 (b)(iii) is not applicable for style FSU-TU-12-NY as it does not satisfy the requirements of the tariff shift.
GN 27 (b)(iii) is not applicable for style FSU-FP-3-CR as it does not satisfy the requirements of the tariff shift and General Note 27(e)(i).
GN 27 (b)(iii) is not applicable for style FSU-FP-4-GR as it does not satisfy the requirements of the tariff shift.
GN 27 (b)(iii) is not applicable for style FSU-FP-5-NY as it does not satisfy the requirements of the tariff shift.
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.
MARKING:
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.
Guidance on marking requirements for wearing apparel can be found in the Informed Compliance Publication “What Every Member of the Trade Community Should Know About: Marking Requirements for Wearing Apparel” available on Customs' Home Page on the Internet's World Wide Web (www.cbp.gov).
Please note that separate Federal Trade Commission marking requirements exist regarding country of origin, fiber content, and other information that must appear on many textile items. You should contact the Federal Trade Commission, Division of Enforcement, 600 Pennsylvania Avenue, N.W., Washington, D.C., 20580, for information on the applicability of these requirements to this item. Information can also be found at the FTC website www.ftc.gov (click on "Consumer Protection" and then on "Business Information" and then on "Clothing and Textiles").
Upon examination of your samples all five styles were found to be improperly marked with the country of origin pursuant to 19 U.S.C. 1304 and the Textile Fiber Identification Act.
Styles FSU-TU-3-BL and FSU-TU-12-NY are marked with the country of origin on a folded over textile label which is attached to the lower side seam. The country of origin marking is on the back of the label. The placement of the label is not readily visible and accessible to the ultimate purchaser upon 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 country of origin marking is not visible unless the label is turned over. This marking is not conspicuous and does not constitute an acceptable country of origin marking in satisfaction of the marking requirements.
Style FSU-FP-3-CR is marked with the country of origin on a folded over textile label which is attached to the seam below the zipper. The country of origin is on the back of the label. The placement of the label is not readily visible and accessible to the ultimate purchaser upon 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 country of origin marking is not visible unless the label is turned over. This marking is not conspicuous and does not constitute an acceptable country of origin marking in satisfaction of the marking requirements.
Style FSU-FP-4-GR is marked with the country of origin on a folded over textile label which is attached to the seam below the zipper. The country of origin is on the back of the label. The placement of the label is not readily visible and accessible to the ultimate purchaser upon 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 country of origin marking is not visible unless the label is turned over. This marking is not conspicuous and does not constitute an acceptable country of origin marking in satisfaction of the marking requirements. In addition, the extra button, wherever it is attached, must not obscure the country of origin marking on the garment.
Style FSU-FP-5-NY is marked with the country of origin in the rear of the waistband. However, the country of origin marking is on the back of the label. The country of origin marking is not visible unless the label is turned over. This marking is not conspicuous and does not constitute an acceptable country of origin marking in satisfaction of the marking requirements.
We also note that two of the submitted garments do not show the generic name of all of the fibers 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. Also, a list of generic names can be found in the Informed Compliance Publication “What Every Member of the Trade Community Should Know About: Fiber Trade Names and Generic Terms” available on Customs' Home Page on the Internet's World Wide Web (www.cbp.gov).
HOLDING: For all five styles the country of origin is Morocco. These styles are eligible for TPL status up to the quantity specified in subheading 9912, U.S. Note 64 and provided the good is imported directly from Morocco.
The holding 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. 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 please contact National Import Specialist Peggy Fitzgerald at (646) 733-3052.
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Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division