CLA-2-61:OT:RR:NC:TA:348
Arthur W. Bodek
Grunfeld, Desiderio, Lebowitz
Silverman & Klestadt LLP
399 Park Avenue
25th Floor
New York, NY 10022
RE: The tariff classification and status under the Haiti Hemispheric Opportunity through Partnership Encouragement Act of 2008 (HOPE II) of men’s pullovers from Haiti.
Dear Mr. Bodek:
In your letter dated March 22, 2010, on behalf of your client, Blue Star Imports LP, you requested a tariff classification ruling.
Style 2376 is a men’s pullover garment that is cut and sewn from 100% cotton, finely knit jersey fabric. The garment has a rib knit crew neckline; short, hemmed sleeves; screen printing on the front panel; raised designs on the left chest; and a straight, hemmed bottom.
The applicable subheading for Style 2376 will be 6110.20.2069, Harmonized Tariff Schedule of the United States (HTSUS), which provides for: sweaters, pullovers, sweatshirts, waistcoats (vests) and similar articles, knitted or crocheted: of cotton: other: other: other: men’s or boys’: other. The duty rate is 16.5% ad valorem.
Your request also concerns the eligibility for HOPE II preferential duty treatment under subheading 9820.61.25, HTSUS.
Chapter 98, Subchapter XX, HTSUS, U.S. Note 6(c) states
Apparel articles of a producer or entity controlling production that are imported directly from Haiti or the Dominican Republic under the terms of heading 9820.61.25 shall enter the United States free of duty during an applicable 1-year period specified in subdivision (c)(ii), subject to the limitations set forth in this note, provided that such apparel articles are wholly assembled, or are knit-to-shape, in Haiti from any combination of fabrics, fabric components, components knit-to-shape and yarns, only if, for each entry in the applicable 1-year period, the sum of—
the cost of value of the materials produced in Haiti or one or more countries enumerated in subdivision (b) of this note, or any combination thereof, plus
the direct costs of processing operations (as defined in general note 7(b) to the tariff schedule) performed in Haiti, or one of more countries enumerated in subdivision (b) of this note, or any combination thereof,
is not less than applicable percentage (as defined in subdivision (f) of this note) of the declared customs value of such apparel articles.
Chapter 98, Subchapter XX, HTSUS, U.S. Note 6(b)(i) states,
For purposes of subdivisions (a)(i) and (c) of this note, the countries included are the United States, Israel, Canada, Mexico, Jordan, Singapore, Chile, Australia, Morocco, Bahrain, El Salvador, Honduras, Nicaragua, Guatemala, Dominican Republic and designated beneficiary countries enumerated in general notes 11, 16 or 17 to the tariff schedule.
Chapter 98, Subchapter XX, HTSUS, U.S. Note 6(d) states,
In calculating cost or value under subdivision (c)(i) of this note, there shall be deducted the cost or value of—
any foreign materials that are used in the production of the apparel articles in Haiti, and
any foreign materials that are used in the production of the materials described in subdivision (c)(i).
You state that much, if not all, of the cotton fabric will originate in the countries identified in Chapter 98, HTSUS, Subchapter XX, U.S. Note 6(b)(i). The fabric will be cut-to-shape in the Dominican Republic. The cut-to-shape pieces will be assembled in Haiti into a finished garment. The garment will be exported directly from the Dominican Republic to the United States. In your ruling request, you did not provide the actual cost or value of the material and the direct cost of processing operations.
Since the garments will be wholly assembled in Haiti from fabric identified in Chapter 98, HTSUS, Subchapter XX, U.S. Note 6(b)(i) and are imported directly from the Dominican Republic, they may be eligible for preferential treatment under HOPE II. However, they must meet the requirements set forth in U.S. Note 6(c)(i) and (ii) Chapter 98, Subchapter XX, HTSUS.
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 classification under subheading 6110.20.2069, contact National Import Specialist Mary Ryan at 646-733-3271. If you have any questions regarding eligibility for preferential treatment under HOPE II, contact National Import Specialist Rosemarie Hayward at 646-733-3064.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division