CLA-2-61:OT:RR:NC:N3:356
Ms. Ruby Tsou
Color Image Apparel, Inc.
6670 Flotilla Street
Commerce, CA 90040
RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of men’s and women’s T-shirts from Mexico; Article 509.
Dear Ms. Tsou:
In your letter dated August 9, 2012, and in subsequent information received on September 12, 2012, you requested a ruling on the status of men’s and women’s T-shirts from Mexico under the NAFTA. The submitted samples will be returned to you.
Style 3001 is a men’s T-shirt constructed from 100% cotton, finely knit jersey fabric that measures 30 stitches per 2 centimeters counted in the horizontal direction. The finished fabric weight of the bleached and dyed fabric will be less than 200 grams per square meter. Style 3001 has a rib knit crew neckline, short hemmed sleeves and a straight, hemmed bottom. The garment will be imported in bleached white and in dyed colors in sizes XS-4XL. You state that, although the garment is identified as unisex, it is made to men’s size specifications.
Style 6004 is a woman’s T-shirt constructed from 100% cotton jersey knit fabric. The garment features hemmed, short sleeves; a crew neckline; and a hemmed bottom. The fabric weighs less than 200 grams per square meter. The garment reaches below the waist.
The applicable subheading for Style 3001 in white will be 6109.10.0004, Harmonized Tariff Schedule of the United States (HTSUS), which provides for T-shirts, singlets, tank tops, and similar garments, knitted or crocheted: of cotton: men’s or boys’: T-shirts, all white, short hemmed sleeves, hemmed bottom, crew or round neckline, or V-neck with a mitered seam at the center of the V, without pockets, trim or embroidery. The duty rate will be 16.5% ad valorem.
The applicable subheading for Style 3001 in colors will be 6109.10.0012, HTSUS, which provides for T-shirts, singlets, tank tops, and similar garments, knitted or crocheted: of cotton: other T-shirts: men’s. The duty rate will be 16.5% ad valorem.
The applicable subheading for Style 6004 will be 6109.10.0040, HTSUS, which provides for T-shirts, singlets, tank tops and similar garments, knitted or crocheted: Of cotton: Women’s: T-shirts: Women’s. The duty rate will be 16.5% ad valorem.
The manufacturing operations are as follows:
100% cotton jersey knit fabric will be imported into the United States from India as greige goods. You state that the fabric is circular knit of a yarn number less than 100 metric number.
The greige fabric will undergo a bleaching, dyeing and shrinking operation in the United States.
The fabric will be cut into component parts in the United States.
The cut to shape parts will be sent to Mexico where they will be assembled into finished garments.
The finished garments will be shipped directly to the United States.
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—
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.
Based on the facts provided, the goods described above do not qualify for preferential treatment under the NAFTA because none of the above requirements are met.
Section XI, Additional U.S. Note 3 (b) states that: The rate of duty in the “Special” subcolumn of rates of duty column 1 followed by the symbol “MX” in parentheses shall apply to imports from Mexico, up to the annual quantities specified in subdivisions (g) (i) of this note, of apparel goods provided for in chapters 61 and 62 that are both cut (or knit to shape) and sewn or otherwise assembled in the territory of a NAFTA party from fabric or yarn produced or obtained outside the territory of one of the NAFTA parties.
Section XI, Additional U.S. Note 3 (d) states that: Notwithstanding the provisions of subdivisions (b) and (c) of this note, the rate of duty in the “Special” subcolumn of rates of duty column 1 followed by the symbol “MX” in parentheses shall not apply to imports from Mexico of the following: (ii)apparel goods provided for in subheadings 6107.11.00, 6107.12.00, 6109.10.00 and 6109.90.00 if such goods are composed chiefly of circular knit fabric of yarn number equal to or less than 100 metric number.
Because Section XI, Additional U.S. Note 3(d) (ii) excludes T-shirts constructed from circular knit fabric with a yarn number equal to or less than 100 metric number, the Tariff Preference Levels (TPL) as defined in the HTSUS, Section XI, Additional U.S. note 3(b) do not apply.
The holding set forth above applies only to the specific factual situation and merchandise identified in the ruling request. This position is clearly set forth in section 19 CFR 177.9(b)(1). This section states that a ruling letter, either directly, by reference, or by implication, is accurate and complete in every material respect.
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 Mary Ryan at (646) 733-3271. 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