CLA-2-61:OT:RR:NC:N3:348
Joshua Swift
GTM Sportswear
520 McCall Road
Manhattan, KS 66502
RE: The tariff classification and status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA), of women’s shorts from Guatemala.
Dear Mr. Swift:
In your undated letter, you requested a ruling on the status of women’s shorts from Guatemala under the DR-CAFTA. The sample is being returned, as requested.
Style SH110M is a pair of woman’s short constructed of 82% nylon and 18% spandex knitted fabric with a foil print dot coating on the outer surface that produces an overall “solid” lamé effect. The dots are uniform in size and spacing and do not create a design on the fabric. The short features an elasticized waistband and has hemmed leg openings.
The applicable subheading for style SH110M will be 6113.00.9052, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Garments, made up of knitted or crocheted fabrics of heading 5903, 5906 or 5907: Other: Trousers, breeches and shorts: Other: Women’s or girls’. The rate of duty will be 7.1 percent ad valorem.
The manufacturing operations are as follows:
The nylon/spandex knit fabric coated on the outer surface is produced in South Korea.
The fabric is cut, sewn and assembled in Guatemala.
The polyester sewing thread is formed and finished in El Salvador.
The polyester/spandex waistband is formed and finished in El Salvador.
The shorts are exported directly to the United States from Guatemala.
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 polyester/cotton fabric.
The component that determines the classification is the 82% nylon and 18% spandex knitted fabric with a foil print dot coating on the outer surface. The classification, for this fabric, is under heading 5903, HTSUS.
For goods classified in heading 6113, General Note 29/61.37 requires:
A change to any other good of heading 6113 from any other chapter, except from headings 5111 through 5113, 5204 and 5212, 5310 through 5311, chapter 54, headings 5508 through 5516 or 6001 through 6006, provided that the good is cut or knot to shape or both, and sewn or otherwise assembled in the territory of one or more of the parties.
The non-originating material, used in the production of the garment, is the coated nylon/spandex knit fabric. Since the coated fabric is classified in chapter 59, it meets the terms of the tariff shift rule.
Chapter rule 3: Notwithstanding chapter rule 2 to this chapter, a good of this chapter, containing fabrics of subheading 5806.20 or heading 6002 shall be considered originating only if such fabrics are both formed from yarn and finished in the territory of one or more to the parties to the Agreement.
The polyester/spandex fabric, for the elastic waistband, is classified in heading 6002. The fabric is formed and finished in one of the parties to the Agreement.
Chapter rule 4: 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 the garment, will be formed and finished in one or more of the parties to the Agreement.
Based on the facts provided, the women’s shorts 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.
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 classification, contact National Import Specialist Natalie Hanson at [email protected]. If you have any questions regarding the eligibility under DR-CAFTA, contact National Import Specialist Rosemarie Hayward via email at [email protected].
Sincerely,
Gwenn Klein Kirschner
Acting Director
National Commodity Specialist Division