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 – Unites States Free Trade Agreement (DR-CAFTA).
Dear Vasquez:
In your letter dated July 22, 2015, you requested a tariff classification ruling for 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 DR-CAFTA.
The submitted samples of identified as style numbers 1003492, 1003510 and 1011703 “Women’s Fluff Flip Flop II” are woman’s sandals having a rubber or plastics outer sole and a sheepskin fur upper. The “Y” shaped upper consists of two straps made of sheepskin fur connected to a polyester strap toe post. The fur straps are attached to the top sole on either side of the foot and between the first and second toes. Style numbers 1003492 and 1003510 feature a nylon bow in the middle of the vamp while style 1011703 has a leather bow. 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 uppers are affixed to the top sole/midsole/outer sole components by cementing, heating, taping, priming and pressing. The finished footwear is cooled and cleaned.
You suggest classification in 6403.99.90, Harmonized Tariff Schedule of the United States, (HTSUS), which is the provision of footwear with outer soles of rubber, plastics, leather or composition leather and uppers of leather. We disagree. The uppers are made of sheepskin fur and will be classified as such.
The applicable subheading for style numbers 1003492, 1003510 and 1011703 “Women’s Fluff Flip Flop II” will be 6405.90.9000, HTSUS, which provides for other footwear: in which the upper is neither leather nor textile; other. The rate of duty will be 12.5 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 non-originating materials used in the production of the good undergoes an applicable change in tariff classification specified in subdivision (n) of this note; …
The non-originating materials must undergo an applicable change in tariff classification in order to meet the requirements of GN 29(b)(ii)(A).
General Note 29 (n), Chapter 64, Chapter rule 1 states:
Notwithstanding the tariff classification rules for goods of chapter 64 set forth below, with respect to goods of chapter 64 falling in the following tariff provisions enumerated in this rule for which a rate of duty followed by the symbol “P” in parentheses appears in the “Special” subcolumn rate of duty column 1, an importer may claim preferential tariff treatment under this note for a good of chapter 64 that meets any tariff classification rule for such good set forth in general note 12, 17, 25, 26 or 28 of the tariff schedule:
tariff items 6401.92.30, 6401.92.60, 6401.99.80, 6402.12.00 through 6402.30.30 inclusive, 6402.30.60, 6402.30.90, 6402.91.40, 6402.91.60, 6402.91.70, 6402.99.05 through 6402.99.18, inclusive, and 6402.99.30 through 6402.99.79, inclusive; heading 6403; tariff items 6404.11.20 through 6404.19.15, inclusive, and 6404.19.25 through 6404.20.60, inclusive; and headings 6405 and 6406.
For goods classified in subheading 6405.90.9000, General Note 29, Chapter 64.2 requires:
A change to any other tariff item of Chapter 64 from any other subheading.
If imported separately, the sheepskin fur straps of the upper would be classified in subheading 6406.10.9090, 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: other. The toe post strap of the upper 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 textile midsole components would be classified in subheading 6406.90.1540 HTSUS, the provision for parts of footwear of textile materials. The rubber/plastic midsole components would be classified in subheading 6406.90.3060, HTSUS, the provision for parts of footwear of rubber or plastics. The sheepskin topsole and insole board components would be classified in subheading 6406.90.9000, HTSUS, which is the provision for parts of footwear: other.
Based on the facts provided, style numbers 1003492, 1003510 and 1011703 “Women’s Fluff Flip Flop II” qualifies for preferential treatment. Each of the components sourced from China, and manufactured into the completed shoe in El Salvador, undergoes the required tariff shift and will meet the requirements under the DR-CAFTA General Notes 29(b)(ii)(A). The sandal will therefore be entitled to a free rate of duty upon compliance with all applicable laws, regulations, and agreements.
Importations of this product may be subject to the provision of Section 133 of the Customs Regulations if they copy or simulate a registered trademark, trade name or copyright recorded with U.S. Customs and Border Protection. If you are an authorized importer of the product we recommend notifying your local Customs office prior to importation.
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