CLA-2-64:OT:RR:NC:N3:447
Mr. John T. Hyatt
The Irwin Brown Company
212 Chartres Street
New Orleans, LA
RE: The tariff classification and status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA), of footwear from El Salvador.
Dear Mr. Hyatt:
In your letters dated July 4, 2014, and August 11, 2014, you requested a tariff classification ruling on behalf of Co Expo, Ltd., Grand Cayman, British West Indies, for shoe covers manufactured in El Salvador from originating and non-originating materials. Your request concerns the classification and 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 sample, identified as Style # 14 S7 301G TAFF 01 AR 10 00, is a below the ankle shoe cover with a textile upper, a textile strap with a plastic side-pinch buckle closure across the top of the foot, and a molded rubber or plastics outer sole. The shoe covers will be used in a “clean room” environment such as a laboratory or a food service facility. You state the shoe cover is for unisex use and is available in sizes S through 3XL. The shoe covers are not considered to be protective and are valued over $6.50 but not over $12/pair.
The submitted Certificate of Origin shows the 100 percent polyester woven fabric for the upper is sourced from China and enters El Salvador in the form of rectangles or rolls. The plastic buckle closure and rubber or plastics outer sole are sourced in the United States as per an attached NAFTA certificate. The fittings and trimmings, such as the sewn-in elastic strap at the topline, a webbing strap with the plastic buckle closure, and a label sewn at the back, are from originating countries such as El Salvador and the United States. In El Salvador, the woven fabric from China, is cut, sewn, and further manufactured into shoe uppers and incorporated with the other originating components including the rubber or plastics outer sole.
The applicable tariff provision for Style # 14 S7 301G TAFF 01 AR 10 00, will be 6404.19.8960, 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: other: valued over $6.50 but not over $12/pair: other: for women. The general rate of duty will be 90 cents/pair + 20 percent ad valorem.
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.
General Note 29(b)(ii)(A) and 29(n) Chapter 64, Chapter Rule 1(2), states “a change to any other tariff item of Chapter 64 from any other subheading.” The non-originating textile material comprising the upper, imported in rectangles/rolls from China, would be classified in subheading 5407.61, HTSUS, the provision for woven fabric of man-made yarn.
Based on the facts provided, the shoe cover, Style # 14 S7 301G TAFF 01 AR 10 00, described above qualifies for preferential treatment because it makes the required tariff shift to chapter 64 from subheading 5407.61, HTSUS, under the U.S./DR-CAFTA, upon compliance with all applicable laws, regulations, and agreements. The shoe covers will therefore be entitled to a free rate of duty.
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