CLA-2-64:OT:RR:NC:N3:447
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 June 2, 2014, you requested a tariff classification ruling, on behalf of ADI Footwear, for men’s and women’s sandals produced in El Salvador from non-originating materials. 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).
The submitted half-pair sample, identified as the “Original Universal Print Sandal,” is a sandal having a rubber or plastics outer sole and a textile multi-strap upper. The components of the upper consist of cotton straps, lined with cotton and leather backing, connected on either side of the foot and on the medial side of the fore foot with three triangular shaped plastic pieces. The shoe is secured to the foot with two sewn-in hook and loop closures across the top of the foot and across the forefoot. The top sole/midsole/outer sole components are comprised of multiple layers of rubber or plastic. All of the components are sourced from China. In China, the straps are inserted into, but not affixed to, the top sole components. In El Salvador, the upper is affixed to the top sole/midsole/outer sole components by cementing, heating, and pressing. The finished footwear is cooled, trimmed, cleaned, and buffed.
The applicable subheading for the men’s Original Universal Print Sandal will be 6404.19.3940, Harmonized Tariff Schedule of the United States (HTSUS), which provides for footwear with outer soles of rubber, plastics, leather or composition leather and uppers of textile materials: footwear with outer soles of rubber or plastics: other: footwear with open toes or open heels; footwear that is not less than 10 percent by weight of rubber or plastics: other: other: for men. The general rate of duty will be 37.5% ad valorem.
The applicable subheading for the women’s Original Universal Print Sandal will be 6404.19.3960, Harmonized Tariff Schedule of the United States (HTSUS), which provides for footwear with outer soles of rubber, plastics, leather or composition leather and uppers of textile materials: footwear with outer soles of rubber or plastics: other: footwear with open toes or open heels; footwear that is not less than 10 percent by weight of rubber or plastics: other: other: for women. The general rate of duty will be 37.5% 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; …
General Note 29(n), Chapter (64) Rule 1(2), states “a change to any other tariff item of Chapter 64 from any other subheading.”
The rubber or plastics midsole components would be classified in subheading 6406.10.6000, HTSUS. The unformed upper component with the straps inserted into, but not affixed to, the top sole, would be classified in subheading 6406.10.7700, HTSUS, the provision for parts of footwear (including uppers whether or not attached to soles other than outer soles): other: other: of cotton: other. And the rubber or plastics outer sole would be classified in subheading 6406.20.0000, HTSUS, the provision for outer soles and heels of rubber or plastics.
Based on the facts provided, the sandal, identified as the “Original Universal Print Sandal,” qualifies for preferential treatment because each of the components sourced from China and assembled in El Salvador undergoes the required tariff shift to another tariff item from other subheadings and will meet the requirements under the U.S./DR-CAFTA, General Notes 29(b)(ii)(A) and 29(n), Chapter (64) Rule 1(2). The sandal will therefore be entitled to a free rate of duty 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: [email protected].
Sincerely,
Gwenn Klein Kirschner
Director
National Commodity Specialist Division