CLA-2-62:OT:RR:NC:N3:356
Mr. Joe HoldRen
UPS Trade Management Services, Inc.
2031 South Centennial Avenue
Aiken, SC 29803
RE: The tariff classification and status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA) of a men’s suit-type jacket and trousers from Guatemala
Dear Mr. HoldRen:
In your letter dated November 3, 2017, you requested a ruling on the classification and status under the DR-CAFTA of a men’s suit-type jacket and trousers. Our response was delayed due to laboratory analysis. The sample garments were destroyed during this analysis and will not be returned.
Style TOFN1 is a men’s suit-type jacket stated to be constructed from 68% polyester, 28% rayon, and 4% elastane woven fabric. Style TOFN1 is constructed of six panels sewn together lengthwise and features a notched collar with lapels; a button hole on the left lapel; a left over right, full front opening with two button closures; long, hemmed, vented sleeves with four buttons on each sleeve; a welt pocket on the left chest; two inset pockets with flaps below the waist; two inner inset pockets on the left front panel; an inner inset pocket with a flap and button closure on the right front panel; two rear vents; and a hemmed bottom with curved edges on the front panels. The body and sleeves are lined with 100% polyester, woven fabric.
Style MGXNP is pair of men’s trousers stated to be constructed from 68% polyester, 28% rayon, and 4% elastane woven fabric. Style MGXNP features a zippered, fly front opening with hook and button closures on the waistband, six belt loops, two side seam pockets, two rear inset pockets with button closures, and hemmed leg openings.
The applicable subheading for Style TOFN1 will be 6203.33.2010, Harmonized Tariff Schedule of the United States (HTSUS), which provides for: Men’s or boys’ suits, ensembles, suit-type jackets, blazers, trouses, bib and brace overalls, breeches and shorts (other than swimwear): Suit-type jackets and shorts: Of synthetic fibers: Other: Men’s. The rate of duty will be 27.3 percent ad valorem.
The applicable subheading for Style MGXNP is 6203.43.6010, HTSUS, which provides for: Men’s or boys’ suits, ensembles, suit-type jackets, blazers, trouses, bib and brace overalls, breeches and shorts (other than swimwear): Trousers, bib and brace overalls, breeches and shorts: Of synthetic fibers: Other: Other: OtherL Other: Men’s. The rate of duty will be 14.9 percent ad valorem.
You also state that Styles TOFN1 and MGXNP are cut, sewn and assembled in Guatemala from fabric of Chinese origin. You assert that the garments are eligible for preferential duty treatment under DR-CAFTA because the fabric of each garment is described in paragraph 89 of the Office of Textiles and Apparel’s (OTEXA) DR-CAFTA short supply list (Annex 3.25).
General Note (GN) 29, HTSUS, sets forth the criteria for determining whether a good is originating under the DR-CAFTA. General Note 29(b), HTSUS states, in pertinent part:
(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—
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
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.
Since the fabric of Styles TOFNI and MGXNP are produced in China, the garments are not wholly produced within the DR-CAFTA territory, nor does either garment meet the specific rule of origin, set out in HTSUS, GN 29(n)/62, that applies to its tariff classification.
However, GN 29(m)(viii)(B) states, in pertinent part:
An apparel good of chapter 61 or 62 of the tariff schedule and imported under heading 9822.05.01 of the tariff schedule shall be considered originating if it is cut or knit to shape, or both, and sewn or otherwise assembled in the territory of one or more of the parties to the Agreement, and if the fabric of the outer shell, exclusive of collars and cuffs where applicable, is wholly of—
(1) one or more fabrics listed in U.S. note 20 to subchapter XXII of chapter 98…
HTSUS, Chapter 98, Subchapter XXII, U.S. Note 20(a) states:
Heading 9822.05.01 shall apply to textile or apparel goods of chapters 50 through 63 and subheading 9404.90 that contain any of the fabrics, yarns or fibers set forth herein, are described in general note 29 to the tariff schedule and otherwise meet the requirements of such general note 29. Within HTSUS, Chapter 98, Subchapter XXII, U.S. Note 20(a) and OTEXA’s short supply list for DR-CAFTA (Annex 3.25) is the following designated fabric:
Two-Way Stretch Woven Polyester, Rayon, Spandex Fabric HTS Subheading: 5515.11.00 Fiber Content: 50 to 77 percent polyester; 18 to 47 percent rayon; 3 to 8 percent spandex (for fabrics comprising single yarns in the warp, the polyester content may be higher) Staple Length (where applicable): 4.44 to 6.99 centimeters (1.75 to 2.75 inches) Yarn (three configurations): #1: Warp and filling: plied polyester/rayon staple of various yarn sizes, combined with spandex filament of various deniers. #2: Warp and filling 34/1 (English 20/1) or finer polyester/rayon staple, combined with spandex filament of various deniers. #3: Warp: 34/1 (English 20/1) or finer polyester/rayon staple, or plied polyester/rayon staple of various yarn sizes, combined with spandex filament of various deniers; Filling: singles or plied polyeter filament of various yarn sizes, combined with spandex filament of various deniers. NOTE: The designation "34/1 (English 20/1) or finer" describes a range of yarn specifications for yarn it its greige condition before dyeing and finishing of the yarn (if applicable) and before weaving, dyeing and finishing of the fabric. It is intended as a specification to be followed by the mill in sourcing yarn used to produce the fabric. Dyeing, finishing and weaving can alter the characteristic of the yarn as it appears in the finished fabric. This specification therefore includes yarns appearing in the finished fabric as coarser than 34/1 (English 20/1) provided that the coarser appearance occurs solely as the result of such processes. Thread Count: 23 to 51 warp ends by 16 to 39 filling picks per centimeter (60 to 130 warp ends by 40 to 100 filling picks per inch) Weave Type: Various (including plain and twill) Weight: -Fabrics comprising single yarns in the warp - 200 to 290 grams per square meter (5.9 to 8.6 ounces per square yard). -Fabrics comprising plied yarns in the warp - 200 to 310 grams per square meter (5.9 to 9.1 ounces per square yard). Width: 121 to 165 centimeters (English 48 to 65 inches) Finish: Dyed and of yarns of different colors. NOTE: As of October 13, 2012, elastomeric content in any product deemed in short supply may be sourced from any country.
Please note that only fabrics meeting the exact description and specifications set out above will be deemed to be commercially unavailable and eligible to be used to qualify products for DR-CAFTA preferential treatment pursuant to GN 29(m)(viii)(B).
The fabrics of your submitted samples were tested by the Customs and Border Protection laboratory, and it was determined that neither fabric conforms to all of the specifications set out above. Specifically, the length of the staple fibers in both the warp and the filling of each of the fabrics was found to be outside of the defined parameters. Accordingly, Styles TOFN1 and MGXNP are not entitled to a free rate of duty under the DR-CAFTA, because neither garment meets the requirements of HTSUS, GN 29(m)(viii)(B)(1). 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 the 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 Maryalice Nowak at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division