CLA-2-61:OT:RR:NC:N3:358
Mr. Miguel Montero
Dad Sons and Associates
14355 NW 14th Street
Pembroke Pines, FL 33028
RE: The tariff classification and status under the Haiti Hemispheric Opportunity through Partnership Encouragement Act of 2006 (HOPE I) and the Haiti Economic Lift Program Act of 2010 (HELP) of men’s and boys’ garments from Haiti
Dear Mr. Montero:
In your letters dated February 13, 2018 and April 3, 2018, you requested a trade preference program ruling on behalf of your client, Integrated Consulting Group. Your first letter was accompanied by three samples. The samples will be retained by this office.
Style 1322952 is a men’s T-shirt, size M, constructed from 60 percent cotton and 40 percent polyester jersey knit fabric. The T-shirt features a crew neckline; short, hemmed sleeves and a curved, hemmed bottom.
Style 1331824 is a boy’s T-shirt, size YL, constructed from 60 percent cotton and 40 percent polyester jersey knit fabric. The T-shirt features a crew neckline; short, hemmed sleeves and a straight, hemmed bottom.
Style 1331687 is a boy’s T-shirt, size YM, constructed from 100 percent polyester interlock knit fabric. The T-shirt features a crew neckline; short, hemmed sleeves and a straight, hemmed bottom.
The applicable subheading for style 1322952 will be 6109.10.0012, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “T-shirts, singlets, tank tops and similar garments, knitted or crocheted: Of cotton: Men’s or boys’: Other T-shirts: Men’s.” The rate of duty will be 16.5 percent ad valorem.
The applicable subheading for style 1331824 will be 6109.10.0014, HTSUS, which provides for “T-shirts, singlets, tank tops and similar garments, knitted or crocheted: Of cotton: Men’s or boys’: Other T-shirts: Men’s.” The rate of duty will be 16.5 percent ad valorem.
The applicable subheading for style 1331687 will be 6109.90.1009, HTSUS, which provides for “T-shirts, singlets, tank tops and similar garments, knitted or crocheted: Of other textile materials: Of man-made fibers: Men’s or boys’: T-shirts: Boys’.” The rate of duty will be 32 percent ad valorem.
Your letter specifically requests this ruling to address whether these items are eligible under Haiti Hemispheric Opportunity through Partnership Encourangement Act of 2006 or 2008 (“HOPE I” or “HOPE II”) or the Haiti Economic Lift Program Act of 2010 (“HELP”).
You state styles 1322952 and 1331824 are made from fabric knit in Guatemala from yarns formed in Guatemala. Style 1331687 is constructed from fabric knit in the United States from yarns formed in the United States. You further state that for all three styles, the materials used to form the fabric are of U.S., Guatemalan or Honduran origin; the thread used to assemble all three styles is made in Honduras; and all of the garments are cut and sewn in Haiti and shipped directly to the United States after labeling, inspecting and packing.
Based on the information you have provided above for styles 1322952, 1331824 and 1331687, subheading 9820.61.25, HTSUS, provides the applicable trade preference legislation to consider whether these garments are eligible for duty-free treatment.
Subheading 9820.61.25, HTSUS, established under HOPE I and expanded under HOPE II and HELP provides for:
Apparel articles described in U.S. note 6(c) to this subchapter imported directly from Haiti or the Dominican Republic during an applicable 1-year period specified in U.S. note 6(b)(ii) to this subchapter, subject to the limitations provided in U.S. note 6(g)(i) to this subchapter.
Chapter 98, Subchapter XX, HTSUS, U.S. Note 6(c) states:
Apparel articles of a producer or entity controlling production that are imported directly from Haiti or the Dominican Republic under the terms of heading 9820.61.25 shall enter the United States free of duty during an applicable 1-year period specified in subdivision (c)(ii), subject to the limitations set forth in this note, provided that such apparel articles are wholly assembled, or are knit-to-shape, in Haiti from any combination of fabrics, fabric components, components knit-to-shape and yarns, only if, for each entry in the applicable 1-year period, the sum of—
the cost or value of the materials produced in Haiti or one or more countries enumerated in subdivision (b) of this note, or any combination thereof, plus
the direct costs of processing operations (as defined in general note 7(b) to the tariff schedule) performed in Haiti, or one of more countries enumerated in subdivision (b) of this note, or any combination thereof,
is not less than applicable percentage (as defined in subdivision (f) of this note) of the declared customs value of such apparel articles.
Chapter 98, Subchapter XX, HTSUS, U.S. Note 6(f)(i)(C) states:
(f) For purposes of this note – (i) the term “applicable percentage” means -- …(C) 60 percent or more during the 1-year period beginning on December 20, 2017.
Based on the origin and cost information you have provided for styles 1331687 and 1331824, the cost of the materials produced in an allowable country and the processing operations performed in Haiti is less than 60 percent of the declared customs value. Therefore, styles 1331687 and 1331824 are not eligible for preferential treatment under subheading 9820.61.25, HTSUS.
Based on the origin and cost information you have provided for the materials and the processing operations, style 1322952 is eligible for preferential treatment under subheading 9820.61.25, HTSUS. The duty rate is Free. However, they are subject to quantitative limitations set forth in U.S. Note 6(g)(i), Chapter 98, Subchapter XX, HTSUS.
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 Kim Wachtel at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division