CLA-2-62:OT:RR:NC:N3:356
Ms. Jena Hooks
Haggar Clothing Company
11511 Luna Road
Dallas, Texas 75234
RE: The tariff classification and status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA), of a men’s woven shirt from Nicaragua.
Dear Ms. Hooks:
In your letter dated January 15, 2015, you requested a ruling on the status of woven shirts under DR-CAFTA. As requested, the sample is being returned to you.
The submitted sample, Style HW00100, is a men’s shirt constructed from 60% cotton and 40% polyester dyed woven fabric. Style HW00100 has a self-fabric buttoned –down point collar; a left over right, full front opening with seven button closures; a patch pocket on the left chest; a rear yoke; long, vented sleeves with button closures on the vents and on the cuffs; and a curved, hemmed bottom.
The submitted sample, HW00331, is a men’s shirt constructed from 60% cotton and 40% polyester woven fabric with two or more colors in the warp and/or in the filling. Style HW00331 has a self-fabric buttoned –down point collar; a left over right, full front opening with seven button closures; a patch pocket on the left chest; a rear yoke; long, vented sleeves with button closures on the vents and on the cuffs; and a curved, hemmed bottom.
Each shirt is packaged in an individual polybag which identifies its contents, including the neck and sleeve sizes. The packaging also includes chipboards, pins, plastic sheeting to help the collar remain shaped (collar form), tissue paper and jet clips. You also included illustrations of the individual polybags and hangtags that will be packaged with the shirts at the time of import.
Style HW00331 will also be imported on hangers, as well as, in individual polybags depending on the customer’s request.
The applicable subheading for Style HW00331 will be 6205.20.2016, HTSUS, which provides for men’s or boys’ shirts: of cotton: other: dress shirts: with two or more colors in the warp and/or the filling: men’s. The duty rate is 19.7% ad valorem.’
The applicable subheading for Style HW00100 is classifiable under subheading 6205.20.2026 of the Harmonized Tariff Schedule of the United States (HTSUS) which provides for men’s or boys’ shirts: of cotton: other: dress shirts: other: men’s. The duty rate is 19.7% ad valorem.
You indicate in your letter that the shirts will be cut and sewn in Nicaragua from fabric formed outside the territories of the DR-CAFTA parties. The garments will be shipped directly to the United States from Nicaragua.
You state the fabrics, for Styles HW00100 and HW00331, contain 73 warp ends and filling picks per square centimeter, of an average yarn number of 75 metric and are not of square construction. The fabric, for HW00100, would be classified under subheading 5210.31, HTSUS. The fabric, for HW00331, would be classified under subheading 5210.41, HTSUS.
You assert that the shirts are eligible for preferential duty treatment under the DR-CAFTA as originating goods pursuant to General Note 29(m)(viii)(B) which provides for duty-free treatment of textile or apparel goods containing fibers, yarns or fabrics designated in Note 20(a), Subchapter XXII, Chapter 98, HTSUS. Specifically, you submit that the garments are constructed of fabric described in Note 20(a)(8) which is classified in subheading 5210.21 or 5210.31, HTSUS.
General Note 29, HTSUS, sets forth the criteria for determining whether a good is originating under the DR-CAFTA. General Note 29(a), HTSUS, (19 U.S.C. § 1202) states, in pertinent part:
Goods for which entry is claimed under the terms of the Dominican Republic – Central America – United States Free Trade Agreement are subject to duty as set forth herein. For the purposes of this note –
(i) originating goods or goods described in subdivisioin (a)(ii), subject to the provisions of subdivisions (b) through (n) of this note, that are imported into the customs territory of the United States and entered under a provision –
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(B) in chapters 98 or 99 of the tariff schedule where rate of duty or other treatment is specified.
are eligible for the tariff treatment and quantitative limitations set forth therein in accordance with sections 201 through 203, inclusive, of the Dominican Republic – Central America – United States Free Trade Agreement Implementation Act (Pub. L. 109-53; 119 Stat. 462);
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General Note 29(m)(viii)(B) states:
An apparel good of chapter 61 or 62 of the tariff schedule and imported under heading 9822.05.01 of the tariff schedule shall be considered originating if it is cut or knit to shape, or both, and sewn or otherwise assembled in the territory of one or more of the parties to the Agreement, and if the fabric of the outer shell, exclusive of collars, cuffs and ribbed waistbands (only if the ribbed waistband is present in combination with cuffs and identical in fabric construction to the cuffs) where applicable, is wholly of—
(1)one or more fabrics listed in U.S. note 20 to subchapter XXII of chapter 98; or
(2) one or more fabrics or knit to shape components formed in the territory of one or more of the parties to the Agreement from one or more of the yarns listed in U.S. note 20 to such subchapter XXII; or
(3) any combination of the fabrics referred to in subdivision (B)(1), the fabrics or knit to shape components referred to in subdivision (B)(2) or one or more fabrics originating under this note.
The originating fabrics referred to in subdivision (B)(3) may contain up to 10 percent by weight of fibers or yarns that do not undergo an applicable change in tariff classification set out in subdivision (n) of this note. Any elastomeric yarn (except latex) contained in an originating fabric or knit to shape component referred to in subdivision (B)(3) must be formed in the territory of one or more of the parties to the Agreement.
U.S. Note 20, Chapter 98, Subchapter XXII, HTSUS states in pertinent part:
(a) Heading 9822.05.01 shall apply to textile or apparel goods of chapters 50 through
63 and subheading 9404.90 that contain any of the fabrics, yarns or fibers set forth herein, are described in general note 29 to the tariff schedule and otherwise meet the requirements of such general note 29:
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(8) Fabrics classified in subheading 5210.21 or 5210.31, not of square
construction, containing more than 70 warp ends and filling picks per square centimeter, of average yarn number exceeding 70 metric.
Based on the facts provided, Style HW00100 does qualify for DR-CAFTA preferential treatment under General Note 29(m)(viii)(B) because the garments do meet the requirements of the provision. However, Style HW00331 does not qualify for DR-CAFTA preferential treatment under General Note 29(m)(viii)(B) because the garments do not met the requirements of the provision. Subheading 5210.21 provides for bleached cotton plain woven fabrics, containing less than 85 percent by weight of cotton, weighing not more than 200 g/m2, mixed mainly or solely with main-made fibers; while subheading 5210.31 provides for dyed cotton plain woven fabrics, containing less than 85 percent by weight of cotton, mixed mainly or solely with man-made fibers, weighing not more than 200 g/m2. The cotton woven fabric of yarns of different colors used to construct Style HW00331 are not classified in subheadings 5210.21 or 5210.31, HTSUS at the time they enter the territory of a DR-CAFTA, i.e., Nicaragua.
However, with regard to Style HW00331, we note it does qualify for DR-CAFTA preferential treatment pursuant to GN 29(n), Chapter 62, Rule 30A. General Note 29(b), HTSUS, (19 U.S.C. § 1202) states, in pertinent part:
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—
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(i) 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
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GN 29(n), Chapter 62, Rule 30A states:
A change to dress shirts for men, with two or more colors in the warp and/or the filling, each with collar and sleeve size stated in inches, without dual collar sizing, the foregoing individually packaged with chipboards, pins, jett clips, individual polybags and hang tags ready for retail sale, of tariff item 6205.20.20 from any other chapter, provided that the good is cut or knit to shape, or both, and sewn or otherwise assembled in the territory of one or more of the parties to the Agreement.
Style HW00331 is classified in subheading 6205.20.20, HTSUS; is constructed of fabric with two or more colors in the warp and/or the filling; and, it meets the packaging requirements of Rule 30A when imported as described in individual polybags with hangtags. When so imported, it is not subject to Chapter Rule 4 of GN 29(n), Chapter 62 which requires sewing thread used in the construction of an originating garment to be formed and finished in the territory of one or more of the parties to the Agreement. Therefore, when so imported, Style HW00331 qualifies for preferential tariff treatment under the DR-CAFTA. However, when Style HW00331 is imported on hangers, it will not qualify for preferential tariff treatment 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 ruling, contact National Import Specialist Rosemarie Hayward via e-mail at [email protected].
Sincerely,
Gwenn Klein Kirschner
Director
National Commodity Specialist Division