CLA-2-64:OT:RR:NC:N3:447
Mr. Reynaldo Vasquez
ADI Footwear
Calle El Mirador, No. 5546, Colonia Escalon,
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 September 5, 2014, you requested a tariff classification ruling on behalf of ADI Footwear for a women’s sandal assembled 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).
You submitted a sample of a completed sandal and an unassembled version with your request. The Women’s Flatform Sandal (Webbing) Style # 1008843 is a sandal having an upper that consists of various nylon webbing straps. A Y-shaped strap connects to the upper with a thong positioned between the first and second toes. An ankle strap, with a hook and loop closure at the back, passes through two looped vertical straps affixed to the rubber or plastics top sole/midsole/outer sole components. The outer sole component that measures from approximately 1¼ inches to 2 inches tall is comprised of multiple layers of rubber or plastics.
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 straps of the upper are affixed to the top sole and midsole components by priming, heating, cementing and pressing to provide shape and structure. The now-formed upper is attached to the midsole and outer sole components by priming, cementing, heating, and pressing. The finished footwear is cooled, trimmed, cleaned, and buffed.
The applicable subheading for the Women’s Flatform Sandal (Webbing) Style # 1008843, 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 10 percent, or more, by weight of rubber or plastics: other: other: for women. The general rate of duty will be 37.5 percent 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 unformed upper component with the straps inserted into, but not affixed to, the top sole would be classified in subheading 6406.10.9040, HTSUS, the provision for parts of footwear (including uppers whether or not attached to soles other than outer soles): uppers and parts thereof: other: other: other: other: of textile materials other than cotton: of man-made fibers. 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. The rubber or plastics midsole components, not including the rubber or plastics outer sole, would be classified in subheading 6406.90.3060, HTSUS, the provision for parts of footwear (including uppers whether or not attached to soles other than outer soles): other: of other materials: of rubber or plastics: other.
Based on the facts provided, the sandal, identified as the Women’s Flatform Sandal (Webbing) Style # 1008843, 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