CLA-2-61 OT:RR:NC:N3:358
Ms. Barbara Nichols
Spyder Active Sports, Inc.
4235 Walnut Street
Boulder, CO 80011
RE: The tariff classification and status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA) of a girl’s shirt from El Salvador.
Dear Ms. Nichols:
In your letter dated January 31, 2014, you requested a ruling on the status of a girl’s shirt under the DR-CAFTA.
The submitted sample, “Girl’s Speed Fleece T-neck,” identified as style 14-5566, is a girl’s shirt that features a partial front opening with a zippered closure, a stand up collar, long hemmed sleeves, a straight bottom, an embroidered logo on the bottom left of the garment and the word “Spdyer” embroidered on the back panel. The garment is constructed from 100% knit polyester fleece fabric. The fabric of the shirt measures 10 stitches per centimeter counted in both the horizontal and vertical directions. The garment also has two minor asymmetrical overlays constructed of woven 100% polyester fabric; one on the top yoke and the other on the bottom hem of the garment. The essential character of the garment is imparted by the knit fleece fabric.
The applicable subheading for style 14-5566 will be 6106.20.2030, Harmonized Tariff Schedule of the United States (HTS), which provides for “Women’s or girls’ blouses and shirts, knitted or crocheted, of man-made fibers, other, girls’, other.” The rate of duty will be 32 percent 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/.
The manufacturing processes are as follows: The knit polyester fabric, for the body of the garment, is manufactured in El Salvador from DR-CAFTA yarns formed in the U.S. and El Salvador from U.S. fibers. The fabric overlay at the neckline and bottom are manufactured in Taiwan. The zipper and garment labels are made in China. The sewing thread is formed and finished in El Salvador. The fabric is cut, sewn and assembled in El Salvador. The garments will be directly imported from El Salvador to the U.S.
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.
As the good contains non-originating materials, it would have to undergo an applicable change in tariff classification in order to meet the requirements of GN 29(b)(ii)(A). General Note 29 (n), Chapter 61, 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 is the knit polyester fleece fabric. Since it is determined to be originating, it does not need to meet the terms of the tariff shift.
General Note 29 (n), Chapter 61, Chapter rule 4 states: Notwithstanding chapter rule 2 to this chapter, a good of this chapter containing sewing thread of headings 5204, 5401 and 5508 shall be considered originating only if such sewing thread is both formed from yarns and finished in the territory of one or more of the parties to the Agreement.
The sewing thread used to assemble both garments will be formed and finished in one or more of the parties to the Agreement.
Based on the facts provided, the shirt will qualify for DR-CAFTA preferential treatment, because they meet the requirements of HTSUS General Note 29(b)(ii)(A). The merchandise will be entitled to a free rate of duty under the DR-CAFTA.
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 Kimberly Praino at 646-733-3053.
Sincerely,
Gwenn Klein Kirschner
Acting Director
National Commodity Specialist Division