CLA-2-62:OT:RR:NC:N3:358
Ms. Donna L. Shira
Sharretts, Paley, Carter & Blauvelt, P.C.
75 Broad Street
New York, NY 10004
RE: The tariff classification and status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA) of infant’s apparel from the Dominican Republic.
Dear Ms. Shira:
In your letter dated May 9, 2013, on behalf of your client F&T Apparel, you requested a ruling on the status of an infant boy’s suit type blazer, shirt, trouser and tie, dress-up set from the Dominican Republic under DR-CAFTA.
The submitted sample, no style number, consists of three garments and one apparel accessory. The suit type blazer has three panels sewn vertically; a two metal button front opening that fastens left over right, two faux patch pockets and one faux breast pocket. The pull-on pants have a faux front zipper placket, a flat front waistband and an elasticized rear waistband. The long sleeve shirt has a full front opening that opens left over right and is secured by five plastic buttons, a pointed collar and one button sleeve cuffs. The pre-fashioned tie secures to the front of the shirt at the neckline by means of a metal clip. The jacket and pants are made of woven cotton fabric. The shirt is made of 55% cotton 45% polyester yarn dyed fabric with two or more yarns in the warp and/or filling. The tie is made of woven polyester fabric. The items will be imported in babies’ sizes 12 to 24 months of age.
You propose classification in tariff subheading 6209.20.5045, which provides for babies’ garments and clothing accessories, of cotton, imported as parts of sets.
Classification of goods under the HTSUSA is governed by the General Rules of Interpretation (GRI). GRI 1 provides that classification shall be determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes. Note 14 to Section XI, HTSUSA, requires textile garments of different headings be separately classified in their own headings even if put up in sets for retail sale unless the context otherwise requires. For purposes of Note 14, the expression "textile garments" means garments of headings 6201 to 6211. The woven cotton blazer, pants and shirt are classified under the same subheading, 6209.20, HTSUSA, which provides for babies’ garments and clothing accessories of cotton. The polyester tie is classified in heading 6209.30, HTSUSA which provides for babies’ garments and clothing accessories of synthetic fibers.
By application of GRI 1, the woven cotton blazer, pants and shirt are classified under subheading 6209.20.50, HTSUSA, which provides for babies garments and clothing accessories, of cotton, other , other.
Additional U.S. Note 1 to Chapter 62, HTSUSA, states:
For the purpose of heading 6209, the term "sets" means two or more different garments of headings 6111, 6209 or 6505 imported together, of corresponding sizes and intended to be worn together by the same person. The woven cotton blazer, pants and shirt meet the terms of Additional U.S. Note 1 to Chapter 62, HTSUSA, as a "set." Thus, the blazer, pants and shirt are classifiable in the same subheading, 6209.20.5035, HTSUSA, which provides for "Babies' garments and clothing accessories: Of cotton: Other: Other, Sets."
The blazer, pants, shirt and tie are a set put up for retail sale within the requirements set forth in Explanatory Note (X) for General Rule of Interpretation (GRI) 3. The blazer, pants and shirt equally contribute to the essential character of the set. The tie is an accessory to the outfit. Since the blazer, pants and shirt are classifiable in the same subheading, 6209.20.5035, HTSUSA, which provides for babies’ woven cotton sets, it is not necessary to choose one garment over the other in determining the essential character for classification purposes.
The blazer, pants, shirt and tie are classified in subheading 6209.20.5035, HTSUSA, which provides for "Babies' garments and clothing accessories: Of cotton: Other: Other, Sets."
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/.
You state that the blazer is made in the Dominican Republic of non-originating fabric and that the pants are made in the Dominican Republic of different non-originating fabric. You further advise that the shirt is made in El Salvador of Chinese origin shirting fabric designated as short supply and described in U.S Note 20(a)(8), Subchapter XXII, Chapter 98, Harmonized Tariff Schedules of the United States (HTSUS). The necktie is made in China. The fabrics for the blazer and pants are cut in the Dominican Republic where the garments are then sewn and assembled. You also advise that the sewing thread is not formed and finished in the United States or one of the DR- CAFTA territories. The fabric for the shirt is cut in El Salvador where the garment is then sewn, assembled and sent to the Dominican Republic where the blazer, pants, shirt and tie are packed together on a single polybag hanger for export to the United States.
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)/62.35A, 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. You have suggested that the shirt may be subject to a reduced rate of duty classified under 9822.05.01.
General Note 29(m)(viii)(B) states: An apparel good of chapter 61 or 62 of the tariff schedule and imported under heading 9822.05.01 of the tariff schedule shall be considered originating if it is cut or knit to shape, or both, and sewn or otherwise assembled in the territory of one or more of the parties to the Agreement, and if the fabric of the outer shell, exclusive of collars and cuffs where applicable, is wholly of— (1) one or more fabrics listed in U.S. note 20 to subchapter XXII of chapter 98; or (2) one or more fabrics formed in the territory of one or more of the parties to the Agreement from one or more of the yarns listed in U.S. note 20 to such subchapter XXII; or (3) any combination of the fabrics referred to in subdivision (B)(1), the fabrics referred to in subdivision (B)(2) or one or more fabrics originating under this note. The originating fabrics referred to in subdivision (B)(3) may contain up to 10 percent by weight of fibers or yarns that do not undergo an applicable change in tariff classification set out in subdivision (n) of this note. Any elastomeric yarn contained in a fabric referred to in subdivision (B)(1), (B)(2) or (B)(3) must be formed in the territory of one or more of the parties to the Agreement. Chapter 98, subchapter XXII of the HTSUS U.S. Note 20(a) to that chapter states in pertinent part, that: Heading 9822.05.01 shall apply to textile or apparel goods of chapters 50 through 63 and subheading 9404.90 that contain any of the fabrics, yarns or fibers set forth herein, are described in general note 29 to the tariff schedule and otherwise meet the requirements of such general note 29.
General Note 29(c)(v) states: Notwithstanding the rules set forth in subdivision (n) of this note, goods classifiable as goods put up in sets for retail sale as provided under general rule of interpretation 3 to the tariff schedule shall not be considered to be originating goods unless - - A) each of the goods in the set is an originating good: or (B) the total value of the nonoriginating goods in the set does not exceed - - (1) in the case of a textile or apparel good, 10 percent of the adjusted value of the set; or (2) in the case of a good, other than a textile or apparel good, 15 percent of the adjusted value of the set.
While the fabric for the shirt may be one of the fabrics listed in U.S. note 20 to subchapter XXII of chapter 98, the shirt, blazer, pants and tie are goods classifiable as goods put up in sets for retail sale as provided under general rule of interpretation 3 to the tariff schedule. The other goods in the set; the blazer, pants and tie, do not meet the requirements of HTSUS General Note 29(c)(v). The fabrics for the blazer, pants and tie also do not meet the requirements of HTSUS General Note 29(m)(viii)(B)(1).
Based on the facts provided, the shirt does not qualify for DR-CAFTA preferential treatment because the other items in the set; the blazer, pant and tie, do not meet the requirements of HTSUS General Note 29(m)(viii)(B)(1).
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 Bruce Kirschner at 646-733-3048.
Sincerely,
Thomas J. Russo
Director,
National Commodity Specialist Division