CLA-2-42:OT:RR:NC:N4:441
Arthur W. Bodek
Amanda Simpson
Grunfeld, Desiderio, Lebowitz, Silverman, Klestadt LLP
399 Park Avenue - 25th Floor
New York, NY 10022
RE: The tariff classification and status under the United States-Colombia Trade Promotion Agreement (CTPA) of a suitcase from Colombia.
Dear Mr. Bodek and Ms. Simpson:
In your letter dated June 27, 2016, you requested a ruling on the status of a suitcase from Colombia under the CTPA on behalf of G-III Apparel Group, Ltd. A sample was not submitted.
The article is described as a hard-sided suitcase with an outer surface of molded plastic. You have submitted two production scenarios. In the first scenario, the front and back plastic shell, the lining material, the top and side handles, the trolley system, the zipper tape, the metal zippers, and a portion of the binding are manufactured in China and shipped together to Colombia. The thread, two-sided tape, screws, rivets, hangtag, country of origin label, remaining binding, cardboard shipping box, and protective plastic bag will be sourced in Colombia. After several materials described above are further worked in Colombia, they are assembled in Colombia into the complete and finished suitcase, packaged, and shipped to the United States. The second scenario is the same as the first, except that the front and back shell will be shipped separately to Colombia from China.
The applicable tariff provision for the suitcase will be 4202.12.2120, Harmonized Tariff Schedule of the United States (HTSUS), which provides for trunks, suitcases, vanity cases, attaché cases, briefcase, school satchels and similar containers, with outer surface of plastics or of textile materials, with outer surface of plastics, trunks, suitcases, vanity cases and similar containers, structured, rigid on all sides. The general rate of duty is 20% ad valorem.
General Note 34, HTSUS, sets forth the criteria for determining whether a good is originating under the CTPA. General Note 34(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 Colombia, the United States, or both;
(ii) the good was produced entirely in the territory of Colombia, the United States, or both, 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 Colombia, the United States, or both, exclusively from materials described in subdivision (b)(i) or (b)(ii) of this note.
For goods classified under subheading 4202.12, GN 34, Chapter 42.4 requires:
A change to goods of subheading 4202.12 with an outer surface of plastic from any other heading.
Based on the information provided, the suitcase, as described above in both scenarios, qualifies for CTPA preferential treatment, because it meets the requirements of HTSUS General Note 34(b)(ii)(A). The goods will therefore be entitled to a free rate of duty under the CTPA 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.
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 Vikki Lazaro at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division