CLA-2-61:OT:RR:NC:N3:348
Mr. Daniel Karo
Gemini Brothers, Inc.
11891 US Highway 1
Suite 204
North Palm Beach, FL 33408
RE: The tariff classification and eligibility under the United States-Dominican Republic-Central America Free Trade Agreement (DR-CAFTA) of women’s swimsuit bottom from Dominican Republic
Dear Mr. Karo,
In your letter dated November 2, 2017, you requested a tariff classification ruling. The sample will be returned to you under separate cover.
The submitted sample, Style # V2554, unfinished swimsuit bottom. The unfinished bottom consists of:
a front and a back panel, for exterior garment, composed of 81% nylon 19% elastane knit fabric.
a front and a back panel, for the lining, composed of 86% polyester 14% elastane knit fabric.
You state all panels will be bundled together and imported at the same time on the same vessel. The fabric will be manufactured in Dominican Republic and then shipped to U.S. Once in the U.S., all items will be stitched together to form the finished garment.
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 6112, HTSUS, provides for “Track suits, ski-suits and swimwear, knitted or crocheted: woman’s or girls’ swimwear:”
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 swimsuit bottom. Thus, when presented together, they are classified as swimwear of heading 6112, HTSUS.
If all components are imported together, the applicable subheading for Style # V2554 will be 6112.41.0010, Harmonized Tariff Schedule of the United States (HTSUS), which provides for track suits, ski-suits and swimwear, knitted or crocheted: woman’s or girls’ swimwear: of synthetic fibers, of fabric containing by weight 5 percent or more elastomeric yarn or rubber thread: women’s. The rate of duty will be 24.9 percent ad valorem.
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.
The manufacturing process for Style # V2554:
The nylon/elastane knit fabric, for the body of the garment, is produced in the U.S. The nylon yarns are produced in Mexico and the elastane yarns are produced in the U.S.
The polyester/elastane knit fabric, for the lining, is produced in U.S. from U.S. yarns.
All fabrics are cut into garment parts in the Dominican Republic. The unfinished garment is shipped to the U.S.
In the U.S. the unfinished garment is sewn together with the sewing thread that is formed and finished in the U.S.
The narrow elastic fabric is formed and finished in the U.S. and is sewn into the garment in the U.S.
General Note (GN) 29, HTSUS, sets forth the criteria for determining whether a good is originating under the DR-CAFTA. GN 29(b), HTSUS (19 U.S.C. § 1202) states: 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; 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 goods contain non-originating materials, they would have to undergo an applicable change in tariff classification in order to meet the requirements of GN 29(b)(ii)(A).
In addition to the above-noted tariff shift rules, the goods must also meet any applicable chapter rules found in GN 29(n), Chapter 62, as well as any applicable rules for textile and apparel goods set out in GN 29(d).
GN 29(n), Chapter 61.35 states:
A change to subheadings 6112.31 through 6112.49 from any other chapter, except from headings 5111 through 5113, 5204 through 5212, 5310 through 5311, chapter 54, headings 5508 through 5516 or 6001 through 6006, 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.
The non-originating nylon yarns are classified in subheading 5402.45.90. The non-originating nylon yarns do not meet the terms of the tariff shift.
However, GN 29 (d) Textile and apparel goods states:
A textile or apparel good that is not an originating good under the terms of this note, because certain fibers or yarns used in the production of the component of the good that determines the tariff classification of the good do not undergo an applicable change in tariff classification set out in subdivision (n) of this note, shall be considered an originating good if-
(B) such yarns are nylon filament yarns (other than elastomeric yarn) provided for in subheading 5402.11.30, 5402.11.60, 5402.19.30, 5402.19.60, 5402.31.30, 5402.31.60, 5402.32.30, 5402.32.60, 5402.45.10, 5402.45.90, 5402.51.00 or 5402.61.00 of the tariff schedule from a country that is a party to an agreement with the United States establishing a free trade area which entered into force before January 1, 1995
Mexico, the country of origin of 81% of the nylon filaments, was a party to an agreement with the United States establishing a free trade area which entered into force in 1985. Therefore the yarns are considered to be originating, in accordance with HTSUS General Note 29 (d).
General Note 29(n), Chapter rule 3 states:
Chapter rule 3. Notwithstanding chapter rule 2 to this chapter, a good of this chapter, containing fabrics of subheading 5806.20 or heading 6002 shall be considered originating only if such fabrics are both formed from yarn and finished in the territory of one or more of the parties to the Agreement.
The narrow elastic fabric will be formed and finished in one or more of the parties to the Agreement.
General Note 29(n), Chapter rule 4 states:
Notwithstanding chapter rule 2 to this chapter, a good of this chapter containing sewing thread of headings 5204, 5401 and 5508 shall be considered originating only if such sewing thread is both formed from yarns and finished in the territory of one or more of the parties to the Agreement.
The sewing thread, used to assemble the garment, will be formed and finished in one or more of the parties to the Agreement.
Based on the facts provided, the garment qualifies for DR-CAFTA preferential treatment, because it meets the requirements of HTSUS General Note 29(b)(ii)(A). Style # V2554 will be entitled to a free rate of duty under the DR-CAFTA.
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