CLA-2-61:OT:RR:NC:N3:348
Ms. Angela Johnson
Kohl’s
N56 W17000 Ridgewood Dr.
Menomonee Falls, Wisconsin 53051
RE: The tariff classification and status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA), of woman’s short sleeve pullover from Guatemala.
Dear Ms. Johnson:
Style FST320103 is a woman’s short sleeve pullover constructed with a 65% polyester 35% cotton lace like openwork warp knitted fabric front panel. The front panel lining, the rear panel, the sleeves, the neckline capping, and the waistband are constructed of a 100% cotton jersey fabric. The garment features a scooped front neckline, a high rear neckline, hemmed short sleeves, and a straight banded garment bottom. The garment reaches to below the waist. The lace like warp knitted component of the garment imparts the essential character to the garment based on the nature of this material that provides a visual and significant decorative effect.
The applicable subheading for the garment will be 6110.30.3059, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Sweaters, pullovers, sweatshirts, waistcoats (vests) and similar articles, knitted or crocheted: Of man-made fibers: Other: Other: Other: Women’s or girls’: Other. The duty rate will be 32% ad valorem.
You have described the manufacturing and assembly of the garment as follows:
The cotton yarns and jersey fabric for the front panel lining, the rear panel, the sleeves, the neckline capping, and the waistband are manufactured in Guatemala.
The polyester/cotton lace like knit fabric for the front panel is manufactured in South Korea.
The lace like knit fabric will be shipped to Guatemala. In Guatemala, all fabric will be cut, sewn and assembled.
The country of origin and fiber content for the sewing thread used to assemble the garments is unknown.
The garments will be shipped directly from Guatemala to the U.S.
General Note (GN) 29, HTSUS, sets forth the criteria for determining whether a good is originating under the DR-CAFTA. GN 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.
As the good contain nonoriginating materials, the goods would have to undergo an applicable change in tariff classification in order to meet the requirements of GN 29(b)(ii)(A).
GN 29 (n), Chapter 62, Chapter rule 2 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 that rule for that good.
The component that determines the classification for the garments is the lace like warp knit fabric which is non-originating.
For goods classified in heading 6110, GN 29/61.25 requires:
A change to heading 6105 through 6110 from any other chapter, except from headings 5111 through 5113, 5204 and 5212, 5310 through 5311, chapter 54, 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 one or more of the parties.
Any visible lining material contained in the apparel article must satisfy the requirements of chapter rule 1 to chapter 62.
The lace like knit fabric classified in heading 6005, HTSUS does not meet the terms of the tariff shift.
Based on the facts provided, the women’s short sleeve pullover does not qualify for DR-CAFTA preferential treatment, because it does not meet the requirements of HTSUS General Note 29(b)(ii)(A). The merchandise will not be entitled to a free rate of duty under the DR-CAFTA.
Your letter also inquires as to whether or not the merchandise will be meet the De Minimis rules for DR-CAFTA.
General Note 29 (d) (i) states states, in pertinent part, that:
A textile or apparel good that is not an originating good under the terms of this note, because certain fibers or yarns used in the production of the component that determines the tariff classification of the good do not undergo an applicable change in tariff classification set out in subdivision (n) of this note, shall be considered an originating good if-
(A) the total weight of all such fibers or yarns in that component is not more than ten percent of the total weight of the component;
The component that determines the classification is composed of 100% non-originating materials. Since this exceeds the allowable amount under the De Minimis rule, the women’s short sleeve pullover would not qualify for DR-CAFTA preferential treatment.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
If you have any questions regarding the classification, contact National Import Specialist Francine Vivona-Brock at (646) 733-3049. If you have any questions regarding eligibility for preferential treatment under DR-CAFTA, contact National Import Specialist Rosemarie Hayward at (646) 733-3064.
Sincerely,
Thomas J. Russo
Director,
National Commodity
Specialist Division