CLA-2-61:OT:RR:NC:N3:361
Mr. James Choh
DK Express Inc.
500 W 190th St., Suite 200
Gardena, CA 90248
RE: The tariff classification and status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA), of women’s knit trousers
Dear Mr. Choh:
In your letter dated June 29, 2022, you requested a ruling on behalf of your client, Hansae, on the classification and eligibility under the DR-CAFTA of women’s knit trousers. The response was delayed due to Customs and Border Protection laboratory analysis, and the sample was destroyed during that analysis.
Style 578798 is a pair of women’s sweatpants which you state are constructed from 80.5 percent cotton and 19.5 percent polyester knit fabric that is napped on the inside surface. However, the results of the laboratory analysis indicate that the overall fiber content is as follows: 77.1 percent cotton, 22.9 percent polyester. The pants feature a covered 2-inch elasticized waistband with an inside drawcord, side pockets, and covered elasticized leg openings. The garment extends from the waist to the ankles.
The applicable tariff provision for style 578798 will be 6104.62.2011, 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) knitted or crocheted: Trousers, bib and brace overalls, breeches and shorts: Of cotton: Other: Other: Trousers and breeches: Women’s: Other.” The duty rate will be 14.9 percent ad valorem.
In your request, you describe the manufacturing and assembly of style 578798 is as follows:
The cotton/polyester fabric, for the body of the garment, is manufactured in Vietnam.
The cotton fabric for the waistband and pocketing is manufactured in Vietnam.
The polyester sewing thread is formed and finished in Vietnam.
The fabric will be cut, sewn, and assembled in Nicaragua.
The garment will be shipped directly from Nicaragua to the United States.
You further assert that the sweatpants are eligible for preferential duty treatment under the DR-CAFTA because the fabric of the garment meets the requirements of the short supply fabric as described in the Office of Textiles and Apparel’s (OTEXA) DR-CAFTA short supply list (Annex 3.25).
General Note 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, that:
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.
As the good contains non-originating materials, it would have to undergo an applicable change in tariff classification in order to meet the requirements of GN 29(b)(ii)(A).
For goods classified under subheading 6104.62, General Note 29(n)/61.24 requires:
A change to subheadings 6104.61 through 6104.69 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, 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 to the Agreement.
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The merchandise does not qualify for preferential treatment under DR-CAFTA because (a) it will not be wholly obtained or produced entirely in the territory of one or more DR-CAFTA countries; (b) one or more of the non-originating materials used in the production of the goods will not undergo the change in tariff classification required by General Note 29(n)/61.24, HTSUS; and (c) it will not be produced entirely in the territory of one or more of the DR-CAFTA parties exclusively from originating materials.
You assert the sweatpants are eligible for preferential treatment under DR-CAFTA because it meets the requirements of the short supply fabric listed in Annex 3.25 within the Office of Textiles and Apparel.
General Note 29(m)(viii)(B) states:
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; or
(2) one or more fabrics formed in the territory of one or more of the parties to the Agreement from one or more of the yarns listed in U.S. note 20 to such subchapter XXII; or
(3) any combination of the fabrics referred to in subdivision (B)(1), the fabrics referred to in subdivision (B)(2) or one or more fabrics originating under this note.
The originating fabrics referred to in subdivision (B)(3) may contain up to 10 percent by weight of fibers or yarns that do not undergo an applicable change in tariff classification set out in subdivision (n) of this note. Any elastomeric yarn contained in a fabric referred Chapter 98, subchapter XXII of the HTSUS U.S. Note 20(a) and (b) to that chapter states in pertinent part, that:
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 that note, (71) provides:
Any other fabric, yarn or fiber that the Committee for Implementation of Textile Agreements (CITA) determines in a notice published in the Federal Register on or after March 1, 2006, is not available in commercial quantities in a timely manner in the territories of the parties to the Agreement, as defined in general note 29(a), subject to any quantitative limitations that CITA may establish for the fabric, yarn or fiber.
On June 5, 2009, CITA published a notice in the Federal Register (74 FR 27008) and determined that certain cotton/polyester three-thread circular knit fleece fabric, as specified below, are not available in commercial quantities in a timely manner in the CAFTA-DR countries. This product was added to the list in Annex 3.25 of the CAFTA-DR Agreement in unrestricted quantities.
HTS: 6001.21
Fiber content: cotton and polyester of no less than 75% cotton
Yarn description:
Face yarn - 100% ring spun combed cotton yarn
Tie yarn - 100% multifilament polyester yarn
Fleece yarn - cotton and staple polyester yarn of no less than 65% cotton
Machine gauge: 21
Weight: 232-271 grams/meter squared (6.85 - 8.0 ounces per square yard)
Finish: napped on one side.
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 fabric of your submitted sample was tested by the Customs and Border Protection laboratory, and it was determined that it does not conform to all the specifications set out above. Specifically, the fabric weighs 296.1 grams per square meter and was found to be outside of the defined parameters. Accordingly, style 578798 is 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).
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.
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 Antoinette Peek-Williams at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division