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 samples, Styles HW00215 and HW00325, are men’s shirt constructed from 100% cotton woven fabric with two or more colors in the warp and/or in the filling. Both styles have 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.
The applicable subheading for Styles HW00215 and HW00325 will be 6205.20.2016, Harmonized Tariff Schedule of the United States (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.
You also 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.
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).
GN 29(n), Chapter 62, Chapter Rule 4, provides:
Notwithstanding chapter rule 2, a good of this chapter, other than-
(a) a good of headings 6207 through 6208 (for boxers, pajamas, and nightwear only), subheading 6204.23, 6204.29, 6204.32, 6212.10, tariff item 6202.12.20, 6202.19.90 (for goods subject to cotton restraints), 6202.91.20 (for goods for women), 6202.92.15, 6202.92.20 (other than padded, sleeveless jackets without attachments for sleeves), 6202.93.45, 6202.99.90 (for goods subject to cotton restraints), 6203.39.90 (for goods subject to wool restraints), 6204.12.00 (for jackets imported as parts of suits), 6204.13.20, 6204.19.20, 6204.19.80 (for jackets imported as parts of suits and subject to cotton restraints, or for goods subject to man-made fiber restraints), 6204.22.30 (for garments described in heading 6202, or for jackets and blazers described in heading 6204), 6204.33.20, 6204.39.80, 6204.42.30 (for garments for girls, other than of corduroy), 6204.43.40 (for garments for girls), 6204.44.40 (for garments for girls), 6205.20.20 (for 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 (sic) clips, individual polybags and hang tags ready for retail sale), 6205.30.20 (for 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 (sic) clips, individual polybags and hang tags each for retail sale), 6209.20.10, 6210.30.90 (for garments other than of linen), 6210.50.90 (for anoraks), 6211.20.15 (for anoraks including ski-jackets), windbreakers, and similar articles (including padded, sleeveless jackets), for women or girls, of cotton, imported as parts of ski suits), 6211.20.58 (for goods of cotton), 6211.41.00 (for jackets and jacket-type garments excluded from heading 6202), 6211.42.00 (for track suits, other than trousers, or for jackets and jacket-type garments excluded from heading 6202) or 6217.90.90 (for coats and jackets, of cotton); or
(b) men's and boys' and women's and girls' suits, trousers, suit-type jackets and blazers, vests and women's and girls' skirts of wool fabric, of subheadings 6203.11, 6203.31, 6203.41, 6204.11, 6204.31, 6204.51, 6204.61, 6211.39 or 6211.41, provided that such goods are not made of carded wool fabric or made from wool yarn having an average fiber diameter of less than or equal to 18.5 microns, containing sewing thread of heading 5204, 5401 or 5508 shall be considered originating only if such sewing thread is both formed and finished in the territory of one or more of the parties to the Agreement.
Since the garment is classified under subheading 6205.20.2016, HTSUS, and is packaged as required by Chapter 62, Rule 4, it is exempt from the sewing thread requirement.
GN 29(n), Chapter 62, Chapter Rule 2, referenced in Chapter Rule 4 above, provides:
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 the rule for that good. If the rule requires that the good must also satisfy the tariff change requirements for visible lining fabrics listed in chapter rule 1, such requirement shall only apply to the visible lining fabric in the main body of the garment, excluding sleeves, which covers the largest surface area, and shall not apply to removable linings.
The non-originating cotton woven fabric is the component that determines the classification.
For goods classified under subheading 6205.20, General Note 29/61.30A requires:
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 (sic) 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.
As previously stated, the fabric, for the shirts, are constructed from two or more colors in the warp and/or in the filling. The non-originating fabric is cut, sewn and assembled in the territory of one of the parties to the Agreement. The garments are packaged with a label indicating the collar/sleeve size, chipboards, tissue paper, pins, jett clips, individual polybags and hang tags ready for retail sale. The garments meet the terms of the tariff shift.
Based on the facts provided, Styles HW00215 and HW00325 qualify for DR-CAFTA preferential treatment because they meet the requirements of HTSUS General Note 29(b)(ii)(A). The merchandise will therefore be entitled to a free rate of duty under the DR-CAFTA upon compliance
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