CLA-2-62:OT:RR:NC:N3:357
Mr. Robert Espejo Servi-Fast International Corporation 7700 NW 79th Place
Miami, FL 33166
RE: The tariff classification and status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA), of a men’s coat from the Dominican Republic
Dear Mr. Espejo:
In your letter dated June 27, 2023, you requested the status of a men’s coat under the DR-CAFTA. Your sample will be returned under separate cover.
Style MDYSO-7PT0058 (black) is a men’s coat constructed from 65% polyester, 30% wool, 3.9% nylon, 1.1% acrylic woven fabric that is laminated to a plastic film. The garment is lined with 100% polyester woven fabric and features a full front opening with a two-way zipper closure that extends to the top of a stand-up collar; a left-over-right, seven-snap closure; an internal storm flap; a back vent; long, hemmed sleeves; and a hemmed bottom. The garment also includes side seam pockets below the waist and an interior slip pocket.
Style MDYSO-7PT0059 (navy) is a men’s coat constructed from 65% polyester, 30% wool, 3.9% nylon, 1.1% acrylic woven fabric that is laminated to a plastic film. The garment is lined with 100% polyester woven fabric and features a full front opening with a two-way zipper closure that extends to the top of a stand-up collar; a left-over-right, seven-snap closure; an internal storm flap; a back vent; long, hemmed sleeves; and a hemmed bottom. The garment also includes side seam pockets below the waist and an interior slip pocket.
In your letter, you suggest styles MDYSO-7PT0058 and MDYSO-7PT0059 are classified under subheading 6201.40.2015, HTSUS, which provides for men’s man-made fiber raincoats. While the garments can be classified under heading 6201, HTSUS, as raincoats, they are also eligible for classification under heading 6210, HTSUS, as garments made up of fabrics of heading 5903. Note 6 to Chapter 62, HTSUS, states that when garments which are prima facie, classifiable both in heading 6210 and in other headings of chapter 62, excluding heading 6209, they are to be classified in heading 6210.
Consequently, the applicable subheading for styles MDYSO-7PT0058 and MDYSO-7PT0059 will be 6210.20.5010, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Garments, made up of fabrics of heading 5602, 5603, 5903, 5906, or 5907: Other garments, of the type described in heading 6201: Of man-made fibers: Other: Overcoats, carcoats, capes, cloaks and similar garments. The rate of duty will be 7.1% ad valorem.
The manufacturing process for styles MDYSO-7PT0058 and MDYSO-7PT0059 is as follows:
The 65% polyester, 30% wool, 3.9% nylon, 1.1% acrylic woven laminated fabric used to manufacture the outer shell of the garment is manufactured in China.
The 100% polyester woven fabric used to line the body and sleeves is made in China.
The 75% polyester, 25% cotton woven fabric used to construct the interior pocket and side seam pocket bags is made in China.
The zippers and snaps are manufactured in China.
The polyester thread used to assemble the garment is made in China.
All other labels and trims are made in China.
The fabric is cut into components, sewn, and assembled into finished garments in the Dominican Republic.
The garments will be shipped directly from the Dominican Republic to the United States.
General Note 29(b), 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 non-originating 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.
Since the garments contain non-originating materials, they are required to undergo an applicable change in tariff classification to meet the requirements of GN 29(b)(ii)(A).
For goods classified in Chapter 62, General Note 29(n), Chapter rule 2 states in pertinent part:
For purposes of determining whether a good of this chapter is originating, 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.
For the garments classified in heading 6210, General Note 29(n) 62.35C requires:
A change to any other good of heading 6210 from any other chapter, except from headings 5111 through 5113, 5204 through 5212, 5310 through 5311, chapter 54, headings 5508 through 5516, 5801 through 5802 or 6001 through 6006, 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.
The component that determines the classification of the garments is the laminated 65% polyester, 30% wool, 3.9% nylon, 1.1% acrylic woven fabric, which you state in your ruling request is manufactured in China. The laminated fabric is classified in chapter 59 and undergoes the applicable change in tariff classification specified in General Note 29(n) 62.35C.
In addition to meeting the commodity specific rules above, the DR-CAFTA chapter rules for linings, sewing thread, and pockets must also be satisfied for each garment.
General Note 29(n), Chapter 62, Chapter rule 1 states in pertinent part:
Except for fabrics classified in tariff item 5408.22.10, 5408.23.11, 5408.23.21 or 5408.24.10, the fabrics identified in the following headings and subheadings, when used as visible lining material in certain men’s and women’s suits, suit-type jackets, skirts, overcoats, carcoats, anoraks, windbreakers and similar articles… must be both formed from yarn and finished in the territory of one or more of the parties to the Agreement.
General Note 29(n), Chapter 62, Chapter rule 2 states in pertinent part:
If the rule requires that the good must also satisfy the tariff change requirements for visible lining fabrics listed in chapter rule 1, such requirement shall only apply to the visible lining fabric in the main body of the garment, excluding sleeves, which covers the largest surface area, and shall not apply to removable linings.
You state the 100% polyester woven lining fabric used to construct the lining in the main body of the garments is made in China.
General Note 29(n), Chapter 62, Chapter rule 4 states in pertinent part:
Notwithstanding chapter rule 2 to this chapter, a good of this chapter containing sewing thread of headings 5204, 5401, and 5508 or yarn of 5402 used as sewing thread shall be considered originating only if such sewing thread or yarn is both formed and finished in the territory of one or more of the parties to the Agreement.
You state the polyester thread or yarn used as thread for assembly is classified under heading 5401 and is formed and finished in China.
General Note 29(n), Chapter 62, Chapter rule 5 states in pertinent part:
Notwithstanding chapter rule 2 to this chapter, a good of this chapter that contains a pocket or pockets shall be considered originating only if the pocket bag fabric has been formed and finished in the territory of one or more of the parties to the Agreement from yarn wholly formed in the territory of one or more of the parties to the Agreement.
You state the interior chest pocket and side seam pocket bags are made of 75% polyester, 25% cotton, woven fabric formed and finished in China.
Based on the facts provided, the garments will not qualify for DR-CAFTA preferential treatment because they do not meet the requirements of HTSUS General Note 29(b)(ii)(A). Specifically, the fabric used to construct the body lining and the pocket bags, and the thread used to assemble the garments are not formed and finished in the territory of one or more of the parties to the Agreement from yarn wholly formed in the territory of one or more of the parties to the Agreement per the requirements of Chapter 62, Chapter Rules 1, 4, and 5. Therefore, the garments are not entitled to a free rate of duty under the DR-CAFTA.
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 Deanna Boldt via email at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division