CLA-2-64:OT:RR:NC:N4:447
Mr. Reynaldo Vasquez
ADI Footwear
Calle El Mirador, No. 5546, Colonia Excalon,
San Salvador, El Salvador
RE: The tariff classification of footwear produced in El Salvador and the eligibility for preferential treatment under the Dominican Republic – Central America Free Trade Agreement (DR-CAFTA).
Dear Mr. Vasquez: In your letter dated December 4, 2013 you requested a tariff classification ruling on behalf of ADI Footwear for women’s and children’s boots assembled in El Salvador from non-originating materials. You provided a sample of the children’s boot, SKU 5251, and state that the women’s boot, SKU 5825, will be manufactured and assembled exactly the same. Your request concerns the eligibility for preferential duty treatment for the footwear under the Dominican Republic-Central America-United States Free Trade Agreement (U.S./DR-CAFTA).
You describe the boots as follows:
Styles “UGG Classic Short-SKU 5825” and “UGG Classic-SKU 5251” are women’s and children’s pull-on cold weather boots, respectively, with EVA rubber or plastics outer soles and sheepskin leather uppers that cover the ankle. The inside is completely lined with sheep fur, thereby making it protective against cold and inclement weather. You state that the upper and sole components are produced in countries other than El Salvador (or other CAFTA countries) and assembled in El Salvador. The Manufacturer Certificate of Origin Affidavits provided by you for the non-originating materials suggest that at the time of importation into El Salvador, these materials would be classified under various subheadings of the Harmonized Tariff Schedule of the United States (HTSUS). You also provided a Manufacturer’s Certificate of Origin Affidavit from the factory in El Salvador stating that the boot is “produced entirely in the territory of one or more of the CAFTA-DR Parties and each of the non-originating materials used in the production of the good undergoes an applicable change in tariff classification.” You suggest that these boots be classified under heading 6404, HTSUS, which provides for footwear having uppers of textile material. We disagree with this suggested classification since the uppers are sheepskin leather. Therefore, classification will be elsewhere.
The applicable subheading for the women’s pull-on boot identified as style “UGG Classic Short-SKU 5825” will be 6403.91.9045, HTSUS, which provides for other footwear with outer soles of rubber, plastics, leather or composition leather and uppers of leather: other footwear: covering the ankle: other: other: for other persons: other: for women: other. The rate of duty will be 10% ad valorem.
The applicable subheading for the children’s pull-on boot identified as style “UGG Classic-SKU 5251” will be 6403.91.9051, HTSUS, which provides for other footwear with outer soles of rubber, plastics, leather or composition leather and uppers of leather: other footwear: covering the ankle: other: other: for other persons: other: other. The rate of duty will be 10% ad valorem.
General Note 29, HTSUS, sets forth the criteria for determining whether a good is originating under the U.S./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 non-originating materials used in the production of the good undergoes an applicable change in tariff classification specified in subdivision (n) of this note; …
Based on the facts provided, the boot (manufactured and assembled exactly the same for both women and children) described above qualifies for U.S./DR-CAFTA preferential treatment because it will meet the requirements of HTSUS General Note 29(b)(ii)(A) and 29(n) Chapter 64, Chapter Rule 1(2), which states “a change to any other tariff item of Chapter 64 from any other subheading.” The boot will therefore be entitled to a free rate of duty under the U.S./DR-CAFTA upon compliance with all applicable laws, regulations, and agreements.
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/.
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, Stacey Kalkines at 646-733-3042. Sincerely,
Gwenn Klein-Kirschner
Acting Director
National Commodity Specialist Division