CLA-2-61:OT:RR:NC:TA:348
Jo Bronson Harris
Sandler, Travis & Rosenberg, P.A.
1000 NW 57th Court
Suite 600
Miami, FL 33126
RE: The tariff classification and status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA), of women’s hosiery from Honduras, Guatemala, El Salvador and Dominican Republic.
Dear Ms. Harris:
In your letter dated June 1, 2010, you requested a ruling on the status of women’s hosiery under the DR-CAFTA and applicability of subheading 9822.05.10. The samples are being returned as requested.
Style 717 is women’s pantyhose that will be sewn and assembled in either Honduras, Guatemala, El Salvador or Dominican Republic. The leg tubes of the pantyhose are knit-to-shape in the griege state in the U.S. with a line of demarcation on the panty part of the tube marking where it will be slit to accommodate assembly and to create a gusset for the crotch. For some styles the tubes will be knit-to-shape with the toes open and some will be knitted closed. The nylon/spandex yarns from which the tubes will be knit are non-originating. The nylon/spandex fabric is classified under heading 6004. You state that the pantyhose will be sewn using U.S. origin thread; you have not stated its fiber content, however, for the purposes of this ruling we will assume the threads are extruded or spun in the U.S. Other components include a gusset crotch lining that you state is of U.S. origin. After assembly, the pantyhose will be dyed in either Honduras, Guatemala, El Salvador or Dominican Republic. The finished product will be packaged and exported to the U.S.
The classification for the pantyhose if measuring per single yarn less than 67 decitex, follows:
The applicable subheading for Style 717 will be 6115.21.0020, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Panty hose, tights, stockings, socks and other hosiery, including stockings for varicose veins, and footwear without applied, knitted or crocheted: Other panty hose and tights: Of synthetic fibers, measuring per single yarn less than 67 decitex, other. The rate of duty will be 16 percent ad valorem.
The classification for the pantyhose if measuring per single yarn 67 decitex or more, follows:
The applicable subheading for the Style 717 will be 6115.22.0000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for panty hose, tights, stockings, socks and other hosiery…knitted or crocheted: panty hose and tights: of synthetic fibers, measuring per single yarn 67 decitex or more: other. The duty rate will be 14.9 percent 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/.
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.
The merchandise does not qualify for preferential treatment under DR-CAFTA because (a) it will not be wholly obtained or produced entirely in the territory of one or more DR-CAFTA countries; (b) one or more of the non-originating materials used in the production of the goods will not undergo the change in tariff classification required by General Note 29(n)/61.38, HTSUS; and (c) it will not be produced entirely in the territory of one or more of the DR-CAFTA parties exclusively from originating materials.
The hosiery, however, may be subject to a reduced rate of duty based upon the provisions of subheading 9822.05.10, subchapter XXII of the HTSUS. U.S. Note 22 to that chapter states:
For a textile or apparel good provided for in chapters 61 through 63 of the tariff schedule that is not an originating good under general note 29 and for which the duty treatment set forth in heading 9822.05.10 is claimed, the rate of duty set forth in the general subcolumn of rate of duty column 1 shall apply only on the value of the assembled good minus the value of fabrics formed in the United States, components knit-to-shape in the United States and any other materials of U.S. origin used in the production of such a good, provided that the good is sewn or otherwise assembled in the territory of a party to the Agreement (other than the United States) specified in general note 29(a) with thread wholly formed in the United States, from fabrics wholly formed in the United States and cut in one or more parties to the Agreement (other than the United States) as defined in general note 29(a) or from components knit-to-shape in the United States, or both. For purposes of this note-
(a) a fabric is wholly formed in the United States if all the production processes and finishing operations, starting with the weaving, knitting, needling, tufting, felting, entangling or other process, and ending with a fabric ready for cutting or assembly without further processing, took place in the United States; and
(b) a thread is wholly formed in the United States if all the production processes, starting with the extrusion of filaments, strips, film or sheet, and including slitting a film or sheet into strip, or the spinning of all fibers into thread, or both, and ending with thread, took place in the United States.
The hosiery is cut and assembled, as well as sewn in a DR-CAFTA country, using fabric for the legs and for the gusset crotch that is formed in the U.S., using thread that is formed in the U.S. In this regard, the hosiery may be eligible under 9822.05.10, HTSUS.
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