CLA-2-61:OT:RR:NC:N3:361
Mr. Ricky Villena
Neutralogistics Customs Brokerage
8400 NW 25 Street
Miami, FL 33186
RE: The tariff classification and status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA), of woman’s knit skirt and top from El Salvador
Dear Mr. Villena:
In your letter dated July 23, 2012, you requested a ruling on the classification and status of knit women’s apparel under the DR-CAFTA on behalf of your client Berwal, Inc.
You also inquire if the Chinese made lace like fabric will affect eligibility for DR CAFTA status.
The submitted sample, style BT001, is a woman’s knit skirt with sewn in shorts. The skirt is constructed from two different fabrics. The skirt and sewn in shorts are constructed from 88% polyester and 12% lycra spandex knit fabric. The lace-like panel is constructed from 95% nylon and 5% spandex knit fabric. The garment features an elasticized waist; sewn in shorts obscured by the skirt; 5 ½ inches long lace-like fabric overlaying half of the skirt; pleating on the lower portion of the skirt; and a hemmed bottom.
The lace-like knit decorative panel is manufactured in China. The yarn and fabric for the rest of the garment is manufactured in the United States. The garment is cut, sewn and assembled in El Salvador. The sewing thread is formed and finished in the United States.The elastic narrow fabric in the waist is constructed from 88% polyester and 12% spandex woven fabric and is formed from U.S. fibers and yarns.
Style TP100 cannot be ruled upon due to the presence of an inner shelf- bra. Section 177.7 of the Customs Regulations (19 C.F.R. §177.7) provides that rulings will not be issued in certain circumstances. Specifically, § 177.7(b) reads, in pertinent part: No ruling letter will be issued with respect to any issue which is pending before the United States Court of International Trade, the United States Court of Appeals for the Federal Circuit or any court of appeal therefrom. Beginning June, 2005, the issue of the classification of an upper body garment with a bra has been filed with the United States Court of International Trade by several different importers. Thus, the issuance of a classification ruling for style TP100 would be inconsistent with 19 C.F.R. §177.7(b). Therefore, the above referenced file is hereby administratively closed.
We are returning your samples.
The applicable subheading for the woman’s skirt, style BT001, will be 6104.53.2010, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Women’s…skirts… knitted or crocheted: Of synthetic fibers. The duty rate will be 16% 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.
For the skirt, the component that determines the classification is the polyester/spandex knit skirt panel.
The component that determines the classification is the 88% polyester 12% spandex knit fabric comprising the skirt and shorts portions of the garment. Based on the facts provided, the skirt, style BT001, qualifies for DR-CAFTA preferential treatment, because it will meet the requirements of HTSUS General Note 29(b). The component that determines the classification is an originating material. Therefore, it will be entitled to a free rate of duty under the DR-CAFTA upon compliance with all applicable laws, regulations, and agreements.
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, contact National Import Specialist Peggy Fitzgerald at 646-733-3052. If you have any questions regarding the eligibility under DR-CAFTA, contact National Import Specialist Rosemarie Hayward at 646-733-3064.
Sincerely,
Thomas J. Russo
Director
National Commodity Specialist Division