CLA-2-64:OT:RR:NC:N3:447
Mr. Reynaldo Vasquez
ADI Footwear
Calle El Mirador, No. 5546, Colonia Escalón,
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 April 15, 2016 you requested a tariff classification ruling for sandals produced in El Salvador from non-originating materials. Your request also concerns the eligibility for preferential duty treatment for finished footwear under the DR-CAFTA.
Footwear parts and a half pair sample of finished footwear, identified as “Universal Slide Ombre” SKU 1012475, were submitted with your request. The footwear is an open-toe, open-heel, below-the-ankle, sandal with an upper of textile material and an outer sole of rubber/plastics.
The upper of the finished footwear is comprised of one frontal toe strap, one instep strap, two lateral connector straps, one plastic forefoot Arc D-Ring, and a medial strap with an attached plastic ring. Both the frontal toe and instep straps feature a hook and loop closure. The frontal toe strap, and lateral connector straps pass through the forefoot Arc D-Ring. The instep strap is sewn to one side, and it passes through the medial strap with the plastic ring. All the straps are made of polyester textile materials. The top sole is made from cow leather. The midsole, and outer sole components are made of EVA rubber or plastics.
All of the components are imported from China. In El Salvador, the webbing is cut, heated, marked and sewn. The final assembly includes priming and cementing to the outer sole and heating to provide shape and structure. The sandal is then cleaned, buffed and packed for export.
The applicable subheading for the “Universal Slide Ombre” SKU 1012475 sandal will be 6404.19.3960, 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 not less than 10 percent 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 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.
1. A change to subheadings 6401.10 or 6401.91 or tariff items 6401.92.90, 6401.99.30, 6401.99.60, 6401.99.90, 6402.30.50, 6402.30.70, 6402.30.80, 6402.91.50, 6402.91.80, 6402.91.90, 6402.99.20, 6402.99.80, 6402.99.90, 6404.11.90 or 6404.19.20 from any other heading outside headings 6401 through 6405, except from subheading 6406.10, provided that there is a regional value content of not less than 55 percent under the build-up method.
2. A change to any other tariff item of chapter 64 from any other subheading.
For goods classified in subheading 6404.19.39, HTSUS, General Note 29, Chapter 64.2 requires:
A change to any other tariff item of Chapter 64 from any other subheading.
Based on the facts provided, the “Universal Slide Ombre” SKU 1012475 sandal qualifies for preferential duty treatment. Each of the parts sourced from China, and manufactured into the completed shoe in El Salvador, undergoes the required tariff shift to 6404.19.39, HTSUS, from other subheadings 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.
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 https://hts.usitc.gov/current.
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
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 above, contact National Import Specialist Stacey Kalkines at [email protected].
Sincerely,
Deborah C. Marinucci
Acting Director
National Commodity Specialist Division