CLA-2-62:OT:RR:NC:N3:356
Mr. Paul Vroman
DHL Global Forwarding
2660 20th Street
Port Huron, MI 48059
RE: The tariff classification and status under the United States – Morocco Free Trade Agreement (UMFTA) of men’s shirts from Morocco
Dear Mr. Vroman:
In undated correspondence received in our office on December 13, 2019, on behalf of your client, The Orvis Company, Inc., you requested a ruling on the tariff classification and status under the UMFTA of men’s shirts from Morocco. As requested by your client, the submitted sample will be returned.
Style 2LBG is a men’s shirt constructed from 100% cotton, yarn-dyed, plaid woven fabric. Style 2LBG features a self-fabric button-down collar, a left-over-right, full front opening with seven button closures, a patch pocket with a one-button closure on the left chest, long, vented sleeves with one button on each vent and an adjustable button closure on each cuff, a rear yoke, a center rear hanger loop and a center rear pleat beneath the yoke, an embroidered logo below the center rear neckline, and a curved, hemmed bottom.
The applicable subheading for Style 2LBG will be 6205.20.2051, Harmonized Tariff Schedule of the United States (HTSUS), which provides for: Men’s or boys’ shirts: Of cotton: Other: Other: Other: With two or more colors in the warp and/or the filling: Other: Men’s. The rate of duty will be 19.7 percent ad valorem.
The manufacturing operations for Style 2LBG are as follows:
Cotton fabric is woven in Taiwan and exported to Morocco.
In Morocco, the fabric is cut, sewn, and assembled into the finished garments.
The finished garments are exported from Morocco directly to the United States.
General Note (GN) 27, HTSUS, sets forth the criteria for determining whether a good is originating under the UMFTA. General Note 27(b), HTSUS states, in pertinent part: For the purposes of this note, subject to the provisions of subdivisions (c), (d), (e), (g) and (h) thereof, a good imported into the United States is eligible for treatment as an originating good of a UMFTA country under the terms of this note only if – (i) the good is a good wholly the growth, product or manufacture of Morocco or of the United States, or both; (ii) the good is a new or different article of commerce that has been grown, produced or manufactured in the territory of Morocco or of the United States, or both, and that falls in a heading or subheading of the tariff schedule that is not covered by the product-specific rules of subdivision (h) of this note; and the sum of -- (A) the value of each material produced in the territory of Morocco or of the United States, or both; and (B) the direct costs of processing operations performed in the territory of Morocco or the United States, or both, is not less than 35 percent of the appraised value of the good at the time the good is entered into the territory of the United States; or (iii) the good falls in a heading or subheading covered by a product-specific rule in subdivision (h) of this note and --
(A) (1) each of the nonoriginating materials used in the production of the good undergoes an applicable change in tariff classification specified in subdivision (h) of this note; or (2) the good otherwise satisfies the requirements specified in subdivision (h) of this note; and (B) the good meets any other requirements specified in this note; and is imported directly into the territory of the United States from the territory of Morocco.
Since the fabric used to produce Style 2LBG is manufactured in Taiwan, the garment is not wholly the growth, product or manufacture of Morocco and/or the United States, and GN 27(b)(i) is therefore inapplicable. Further, because Style 2LBG falls in a subheading that is covered by a product-specific rule found in subdivision (h), GN 27(b)(ii) is also inapplicable.
Style 2LBG is subject to the product-specific rule set out in GN 27(h)/62.30, which requires:
A change to heading 6205.20 through 6205.30 from any other chapter, except from headings 5106 through 5113, 5204 through 5212, 5307 through 5308 or 5310 through 5311, chapter 54 or headings 5508 through 5516, 5801 through 5802 or 6001 through 6006, provided that the good is cut or knit to shape and sewn or otherwise assembled in the territory of Morocco or the United States, or both.
GN 27(h), Chapter 62, Chapter Rule 3 states, in pertinent part:
For purposes of determining the origin of a good of chapter 62 of the tariff schedule, the rule applicable to that good shall only apply to the component that determines the tariff classification of the good and such component must satisfy the tariff change requirements set out in the rule for that good.
The component that determines the classification of Style 2LBG is the cotton woven fabric manufactured in Taiwan. Since this fabric is classified within one of the excepted tariff ranges set out in GN 27(h)/62.30 (i.e., 5208 through 5212), Style 2LBG does not meet this product-specific rule.
However, GN 27(h), Chapter 62, Subheading Rule states, in pertinent part:
Men’s or boys’ shirts of cotton or man-made fibers shall be considered to originate if they are both cut and assembled in the territory of Morocco or of the United States, or both, and if the fabric of the outer shell, exclusive of collars or cuffs, is wholly of one or more of the following:…
You state that the fabric of Style 2LBG meets the parameters set out in part F of this subheading rule:
Fabrics of subheadings 5208.42 or 5208.49, not of square construction, containing more than 85 warp ends and filling picks per squatre centimeter, of average yarn number exceeding 85 metric.
The fabric of your submitted sample was tested by the Customs and Border Protection laboratory, and it was determined that it does not conform to the specifications set out above. Specifically, because it was found to be 4-thread twill, it is classified in subheading 5208.43, not in 5208.42 or 5208.49, as you have claimed. Further, it was found to contain less than 85 warp ends and filling picks per square centimeter, and its average yarn number was found to be less than 85 metric.
Accordingly, Style 2LBG is not entitled to a free rate of duty under the UMFTA, because it does not meet the requirements of HTSUS, GN 27(b)(iii).
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