CLA-2-62:OT:RR:NC:N3:348
Ms. Adrianne Pangborn
VF Imagewear
545 Marriot Drive
Suite 200
Nashville, TN 37214
RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of men’s jackets from Mexico; General Note 12(b)(ii)(A); 19 CFR 102.21(c)(2); Article 509
Dear Ms. Pangborn:
In your letter dated February 14, 2012, you requested a ruling on the status of men’s jackets from Mexico under the NAFTA.
Style VT22CH is a men’s padded, sleeveless jacket made from a five-layer quilted fabric consisting of an exterior material of 65% polyester/35% cotton woven fabric sewn to two layers of polyurethane foam, one layer of nonwoven polyester batting and a layer of woven 100% polyester taffeta fabric. The garment has a full front opening with a zipper closure, patch pockets at the waist and a ribbed knit collar.
Style JD20BD is a men’s outerwear jacket with a shell made from a woven 65% polyester/35% cotton canvas fabric. It has a full front opening with a zipper closure, long sleeves with rib knit cuffs, a self-fabric hood with a drawstring tightening, patch pockets at the waist, a quilted lining and a rib knit waistband.
Styles JT40BC and JT38BK are men’s varsity-style jackets which differ only to the extent that style JT40BC has contrasting color sleeves. Both jackets have a woven 65% polyester/35% cotton shell, a full front opening with a zipper closure, long sleeves with rib knit cuffs, a rib knit collar, slant pockets at the waist and a quilted lining.
Style VD22BD is a men’s padded, sleeveless jacket with a shell made from a woven 65% polyester/35% cotton fabric. It has a full front opening secured by a five-snap covered closure, a ribbed knit collar, slant pockets at the waist and a quilted lining.
Style JT50BK is a men’s jacket with a shell made from a woven 65% polyester/35% cotton fabric. It has a full front opening with a zipper closure, long sleeves with a buttoned cuff, slant, on-seam pockets at the waist, a pointed collar, a hemmed bottom and a quilted lining.
Style JT22BK is a men’s jacket with a shell made from a woven 65% polyester/35% cotton fabric. It has a full front opening with a zipper closure, long sleeves with a buttoned cuff, slant pockets at the waist, a pointed collar, a banded bottom and a quilted lining.
Style JD24BD is a men’s jacket with a shell made from a woven 65% polyester/35% cotton canvas fabric. It has a full front opening with a five-snap closure, double-entry patch pockets with flaps at the waist, patch pockets in the chest, one inside chest pocket, long sleeves with snapped cuffs, a corduroy collar, a hemmed bottom and a quilted lining.
The applicable tariff provision for styles VT22CH and VD22BD will be 6201.93.2020, Harmonized Tariff Schedule of the United States (HTSUS), which provides for other men’s or boys’ anoraks (including ski-jackets), windbreakers and similar articles, of man-made fibers: padded, sleeveless jackets. The general rate of duty will be 14.9% ad valorem.
The applicable tariff provision for all other styles will be 6201.93.3511, HTSUS, which provides for other men’s anoraks (including ski-jackets), windbreakers and similar articles, of man-made fibers. The general rate of duty will be 27.7% 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 are as follows:
Style VT22CH:
The five-layer fabric is quilted in the U.S.
The first layer (exterior) is composed of polyester/cotton fabric. It is manufactured in the U.S. from U.S. yarns. The polyester staple fibers are manufactured in China and the U.S. The cotton fibers are manufactured in U.S.
The second and fourth layer are composed of polyurethane foam manufactured in the U.S.
The third layer is composed of Korean polyester fibers. The fibers are shipped from Korea to the U.S. where they are processed into batting.
The fifth layer is composed of polyester taffeta fabric manufactured in Taiwan.
The five-layer quilted fabric is cut, sewn and assembled into a garment in Mexico.
The garment is exported directly from Mexico to the U.S.
Styles JD20BD, JT40BC, JT38BK, VD22BD, JT50BK and JT22BK:
The outer shell is composed of polyester/cotton fabric manufactured in the U.S. from U.S. yarns. The polyester staple fibers are manufactured in China and the U.S. The cotton fibers are manufactured in U.S.
A three-layer fabric is quilted in Mexico. The first layer is composed of polyester taffeta fabric manufactured in Taiwan. The second layer is composed of polyurethane foam manufactured in Mexico. The third layer is composed of non-woven fabric manufactured in China.
The fabrics are cut, sewn and assembled into a garment in Mexico.
The finished garment is shipped directly to the U.S.
General Note 12(b), HTSUS, sets forth the criteria for determining whether a good is originating under the NAFTA. General Note 12(b), HTSUS, (19 U.S.C. § 1202) states, in pertinent part, that
For the purposes of this note, goods imported into the customs territory of the United States are eligible for the tariff treatment and quantitative limitations set forth in the tariff schedule as “goods originating in the territory of a NAFTA party” only if--
(i) they are goods wholly obtained or produced entirely in the territory of Canada, Mexico and/or the United States; or
(ii) they have been transformed in the territory of Canada, Mexico and/or the United States so that--
(A) except as provided in subdivision (f) of this note, each of the non-originating materials used in the production of such goods undergoes a change in tariff classification described in subdivisions (r), (s) and (t) of this note or the rules set forth therein, or
(B) the goods otherwise satisfy the applicable requirements of subdivisions (r), (s) and (t) where no change in tariff classification is required, and the goods satisfy all other requirements of this note; or
(iii) they are goods produced entirely in the territory of Canada, Mexico and/or the United States exclusively from originating materials; or
(iv) they are produced entirely in the territory of Canada, Mexico and/or the United States but one or more of the nonoriginating materials falling under provisions for “parts” and used in the production of such goods does not undergo a change in tariff classification because--
(A) the goods were imported into the territory of Canada, Mexico and/or the United States in unassembled or disassembled form but were classified as assembled goods pursuant to general rule of interpretation 2(a), or
(B) the tariff headings for such goods provide for and specifically describe both the goods themselves and their parts and is not further divided into subheadings, or the subheadings for such goods provide for and specifically describe both the goods themselves and their parts,
provided that such goods do not fall under chapters 61 through 63, inclusive, of the tariff schedule, and provided further that the regional value content of such goods, determined in accordance with subdivision (c) of this note, is not less than 60 percent where the transaction value method is used, or is not less than 50 percent where the net cost method is used, and such goods satisfy all other applicable provisions of this note.
Chapter 62, Chapter rule 3, states in pertinent part:
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 Style VT22CH is the five-layer fabric. The non-originating material is the five-layer quilted fabric that is classified in heading 5811, HTSUS.
The component that determines the classification for Styles JD20BD, JT40BC, JT38BK, VD22BD, JT50BK and JT22BK is the outer shell fabric composed of polyester/cotton that is classified in heading 5513 or 5514, HTSUS.
For all styles classified in heading 6201, GN 12/62.32C requires:
A change to subheadings 6201.91 through 6201.93 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 both sewn or otherwise assembled in the territory of one or more of the NAFTA parties.
the good is both cut and sewn or otherwise assembled in the territory of one or more
of the Parties, and
the visible lining fabric listed in Note 1 to Chapter 62 satisfies the tariff change requirements provided therein.
The fabrics, for all styles, do meet the terms of the tariff shift rule. The good will be both sewn and assembled in Mexico.
Chapter 62, Chapter Rule 1 states:
A change to any of the following headings or subheadings for visible lining fabrics:
5111 through 5112, 5208.31 through 5208.59, 5209.31 through 5209.59, 5210.31 through 5210.59, 5211.31 through 5211.59, 5212.13 through 5212.15, 5212.23 through 5212.25, 5407.42 through 5407.44, 5407.52 through 5407.54, 5407.60, 5407.72 through 5407.74, 5407.82 through 5407.84, 5407.92 through 5407.94, 5408.22 through 5408.24 (excluding Canadian tariff item 5408.22.10, 5408.23.10 or 5408.22.10, U.S. tariff item 5408.22.00A, 5408.23.10A, 5408.23.20A or 5408.24.00A or Mexican tariff item 5408.22.04, 5408.23.05 or 5408.24.01), 5408.32 through 5408.34, 5512.19, 5512.29, 5512.99, 5513.21 through 5513.49, 5514.21 through 5515.99, 5516.21 through 5516.14, 5516.22 through 5516.24, 5516.32 through 5516.34, 5516.42 through 5516.14, 5516.22 through 5516.24, 5516.32 through 5516.34, through 5516.42 through 5516.44, 5516.92 through 5516.94, 6001.10, 6001.92, or 6002.91 through 6002.93,
from any other heading outside that group.
The lining fabric, for all styles, is classified in heading 5811, HTSUS. The lining fabric meets the terms of the Chapter Rule
Based on the facts provided, the goods described above qualify for NAFTA preferential treatment, because they will meet the requirements of HTSUS General Note 12(b)(ii)(A). The goods will therefore be entitled to a Free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements.
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, “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, “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, 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:
(1) If the good consist 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 garments are made of two or more component parts and are cut, sewn and assembled in Mexico. All styles meet the terms of the tariff shift requirement of 19 C.F.R. 102.21, country of origin is conferred in Mexico.
This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 C.F.R. 181).
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 in this ruling, contact National Import Specialist William Raftery at (646) 733-3047. If you have any questions regarding eligibility for preferential treatment under NAFTA, contact National Import Specialist Rosemarie Hayward at (646) 733-3064.
Sincerely,
Thomas J. Russo
Director
National Commodity Specialist Division