CLA-2-62:OT:RR:NC:N3:360
Mr. Younggeon Wi
Samsol, S.A.
KM 37.5 Carretera Interamericana
Santiago Sacatepequez
Sacatepequez, 03006
Guatemala
RE: The tariff classification and status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA) of women’s trousers
Dear Mr. Wi:
In your letter dated May 11, 2022, you requested a ruling on the classification and eligibility under the DR-CAFTA of women’s trousers. The response was delayed due to Customs and Border Protection laboratory analysis, and the samples were destroyed during that analysis.
Article SY40212N-280 is a pair of women’s trousers which you state are constructed from 63% polyester, 33% viscose, and 4% elastane woven fabric. However, the results of the laboratory analysis indicate that the overall fiber content is as follows: 63.5% polyester, 32.2% rayon, 4.3% elastomeric. The pull-on trousers feature a partial elasticized waistband, two slant side seam pockets, and hemmed leg openings.
Article HT-S203892D-D is a pair of women’s trousers which you state are constructed from 63% polyester, 33% viscose, and 4% elastane woven fabric. However, the results of the laboratory analysis indicate that the overall fiber content is as follows: 62.1% polyester, 33.3% rayon, 4.6% elastomeric. The pull-on trousers feature a partial elasticized waistband, two slant side seam pockets, and hemmed leg openings.
Article HT-S206287A is a pair of women’s trousers which you state are constructed from 74% polyester, 20% viscose, and 6% elastane woven fabric. However, the results of the laboratory analysis indicate that the overall fiber content is as follows: 72.4% polyester, 21.7% rayon, 5.9% elastomeric. The pull-on trousers feature a partial elasticized waistband, two slant side seam pockets, and hemmed leg openings.
Article HT-S204657-WS is a pair of women’s trousers which you state are constructed from 66% polyester, 29% viscose, and 5% elastane woven fabric. However, the results of the laboratory analysis indicate that the overall fiber content is as follows: 59.3% polyester, 34.7% rayon, 6.0%
elastomeric. The pull-on trousers feature a partial elasticized waistband, two slant side seam pockets, and hemmed leg openings.
Article YL920155-WS is a pair of women’s trousers which you state are constructed from 63% polyester, 32% viscose, and 5% elastane woven fabric. However, the results of the laboratory analysis indicate that the overall fiber content is as follows: 62.5% polyester, 32.7% rayon, 4.8% elastomeric. The pull-on trousers feature a partial elasticized waistband, two slant side seam pockets, and hemmed leg openings.
The applicable subheading for articles SY40212N-280, HT-S203892D-D, HT-S206287A, HT-S204657-WS, and YL920155-WS will be 6204.63.9010, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Women’s or girls’ suits, ensembles, suit-type jackets, blazers, dresses, skirts, divided skirts, trousers, bib and brace overalls, breeches and shorts (other than swimwear): Trousers, bib and brace overalls, breeches and shorts: Of synthetic fibers: Other: Other: Other: Other: Other: Trousers and breeches: Women’s. The duty rate will be 28.6 percent ad valorem.
In your request, you describe the manufacturing and assembly of articles SY40212N-280, HT-S203892D-D, HT-S206287A, HT-S204657-WS, and YL920155-WS is as follows:
The polyester/viscose/elastane woven fabric is manufactured in China.
The sewing thread is produced in China.
The fabric will be cut, sewn, and assembled into trousers in Guatemala.
The garments will be shipped directly from Guatemala to the U.S.
You further advise that the garments are eligible for preferential duty treatment under the DR-CAFTA because the fabric of each of the garments 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 (19 U.S.C. § 1202) states, in pertinent part:
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 nonoriginating 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.
Because the fabric of the garments is produced in China, the garments are neither wholly obtained or produced within the DR-CAFTA territory, nor produced within the DR-CAFTA territory exclusively from originating materials. In addition, the garments do not meet the applicable tariff shift rules that apply to their tariff classification (GN 29(n)/62).
However, General Note 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 Chapter 98, subchapter XXII, U.S. Note 20(a) and OTEXA’s short supply list for CAFTA-DR, Annex 3.25, is the following designated fabric:
89. 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.
Only products meeting the exact description and specifications cited above will be deemed to be commercially unavailable and eligible to be used in products qualifying for preferential benefits.
The fabric of each of your submitted samples was tested by the Customs and Border Protection laboratory, and it was determined that not one conforms to all the specifications set out above. Specifically, the length of the staple fibers was found to be outside of the defined parameters. Accordingly, articles SY40212N-280, HT-S203892D-D, HT-S206287A, HT-S204657-WS, and YL920155-WS are not entitled to a free rate of duty under the DR-CAFTA because the garments do not meet the requirements of HTSUS, GN 29(m)(viii)(B)(1).
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 6204.63.9010, HTSUS, unless specifically excluded, are subject to an additional 7.5 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.15, in addition to subheading 6204.63.9010, HTSUS, listed above.
The HTSUS is subject to periodic amendment, so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading. For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, including information on exclusions and their effective dates, you may refer to the relevant parts of the USTR and CBP websites, which are available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/trade/remedies/301-certain-products-china, respectively.
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.
At the time of Entry/Entry Summary, you may be requested to verify the information for any specific shipment or product.
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 Kimberly Rackett via email at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division