CLA-2-42:OT:RR:NC:N3:348
Mr. Matthew Wasserbach
Corbett International, Inc.
One Cross Island Plaza, Suite 203F
Rosedale, NY 11422
RE: The tariff classification and country of origin determination of an unfinished leather vest from Pakistan.
Dear Mr. Wasserbach:
In your letter dated July 21, 2017, you requested a tariff classification and country of origin ruling. The samples will be returned to you under separate cover.
The submitted sample, Style FIM686CPM, is an unfinished leather vest. The unfinished leather vest consists of:
two front panels composed of leather.
two front textile panels composed of 100% polyester knit fabric.
one back panel composed of leather
one textile back panel composed of 100% polyester knit fabric.
six small parts labeled “right side arm,” “left side arm,” “collar band” and “botton right,” “botton left” and “back bottom.” Each of these pieces are composed of 100% leather.
three small parts labeled “inside right panel,” “ inside left panel” and “back inside panel bottom.” Each of these pieces are composed of 100% polyester knit fabric.
You state the panels and parts may be imported at different times on different vessels or imported at the same time on the same vessel. They will be manufactured in Pakistan and then shipped to the U.S. Once in the U.S., items will be stitched together to form the finished garment, cleaned of extra threads, cleaned for finishing purposes and steam ironed.
Classification of goods under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA), is governed by the General Rules of Interpretation (GRI). GRI 1 provides that classification shall be determined according to the terms of the headings and any relative section or chapter notes. Where goods cannot be classified solely on the basis of GRI 1, the remaining GRIs will be applied, in the order of their appearance.
Heading 4203, HTSUS, provides for “Articles of apparel and clothing accessories, of leather or of composition leather.”
GRI 2(a) states that:
Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as entered, the incomplete or unfinished article has the essential character of the complete or finished article. It shall also include a reference to that article complete or finished (or falling to be classified as complete or finished by virtue of this rule), entered unassembled or disassembled.
Accordingly, the first part of GRI 2(a) extends the scope of an article provision to cover not only the complete article, but also that article incomplete or unfinished, provided that, as presented, it has the essential character of the complete or finished article. The second part of the rule provides that an article presented unassembled is classified in the same heading as the assembled article. In addition, an unfinished article possessing the essential character of the finished article remains classifiable as the finished article when presented unassembled.
It is clear that when the items are entered together, they are dedicated for use in a finished leather vest. Thus, when presented together, they are classified as a leather vest of heading 4203, HTSUS.
The second scenario you present is to import component parts of the vest in separate shipments and/or on separate vessels. Customs and Border Protection has previously ruled that components do not possess the essential character of the finished article when imported individually. Accordingly, each component is classified according to its constituent materials.
If all components are imported together, the applicable subheading will be 4203.10.4085, Harmonized Tariff Schedule of the United States (HTSUS), which provides for "Articles of apparel and clothing accessories, of leather or composition leather: Articles of apparel: Other, Other: Men’s and boys’." The rate of duty will be 6 percent ad valorem.
If imported separately, the applicable subheading for the front and back leather panels and the parts labeled “right side arm,” “left side arm,” “collar band” and “botton right,” “botton left” and “back bottom” will be 4205.00.8000, HTSUS, which provides for other articles of leather or of composition leather, other, other, other. The rate of duty will be free.
If imported separately, the applicable subheading for the front and back textile panels and the parts labeled “inside right panel,” “inside left panel” and “back inside panel bottom” will be 6117.90.9090, HTSUS, which provides for "Other made up clothing accessories, knitted or crocheted: knitted or crocheted parts of garments or of clothing accessories: Parts: Other, Other: Of man-made fibers." The duty rate will be 14.6% ad valorem.
Country of Origin
Section 134.1(b), CBP Regulations (19 C.F.R. § 134.1(b)), defines “country of origin” as “the country of manufacture, production, or growth of any article of foreign origin entering the United States. Further work or material added to an article in another country must effect a substantial transformation in order to render such other country the ‘country of origin’ within the meaning of [the marking laws and regulations].” For country of origin marking purposes, a substantial transformation of an article occurs when it is used in manufacture, which results in an article having a name, character, or use differing from that of the article before the processing. However, if the manufacturing or combining process is merely a minor one that leaves the identity of the article intact, a substantial transformation has not occurred. Uniroyal, Inc. v. United States, 3 CIT 220, 542 F. Supp. 1026, 1029 (1982), aff’d, 702 F.2d 1022 (Fed. Cir. 1983).
Based on the information provided, we find that the leather undergoes a substantial transformation in Pakistan as a result of cutting to shape and forming the components for later assembly into the finished articles.
Furthermore, we find that the operations performed in United States do not constitute a further substantial transformation of the pre-cut components. The United States operations consist of merely sewing the components together. CBP has long held that the mere assembly of parts will not necessarily constitute a substantial transformation. See C.S.D. 80-111, dated September 24, 1979.
The country of origin of the completed leather vest is Pakistan and should be marked accordingly.
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 Rosemarie Hayward via email at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division