CLA-2-61:OT:RR:NC:N1:361
Mr. Miguel Aristizabal
EXPOFLEX
Calle 80 Sur # 47D-45 Medellin Colombia
RE: The tariff classification and eligibility under the United States-Colombia Trade Promotion Agreement (CTPA), of women's knit apparel from Colombia.
Dear Mr. Aristizabal:
In your letter dated February 7, 2024, you requested a ruling on the status of a women's crop top and leggings from Colombia under the CTPA. Your samples will not be returned to you.
Style 344-L is a women's crop top constructed from 86 percent nylon, 14 percent spandex finely knit fabric. The tight-fitting sleeveless garment extends from the shoulders to above the waist, and features a boat neckline, straight back, overlock stitching at the front and back and a 2-inch elasticized bottom. The garment provides sufficient bust coverage.
Style 168 is a pair of women's legging-styled pants constructed from 86 percent nylon, 14 percent spandex finely, knit fabric. The tight-fitting pull-on pants extend from the waist to the ankles and features a 5-inch elasticized waistband, side pockets, overlock stitching at the back seams, sides, waist and gusset and hemmed leg openings.
The applicable subheading for style 344-L will be 6114.30.1020, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for Other garments, knitted or crocheted: Of man-made fibers: Tops: Women's. The duty rate will be 28.2 percent ad valorem.
The applicable subheading for the style 168 will be 6104.63.2006, 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, Of synthetic fibers: Other: Other: Women's: Containing 5 percent or more by weight of elastomeric yarn or rubber thread. The rate of duty will be 28.2 percent ad valorem.
The manufacturing process for both styles:
The knit fabric, for the body of the garment, including pockets is manufactured in the Colombia.
The garments are wholly produced (cut, sewn assembled), in Columbia.
The elastomeric yarn is extruded and formed in the U.S.
The nylon filament yarn is extruded and formed as pre-oriented yarn in the U.S.
The sewing thread, used to assemble the garment, is formed, and finished in Colombia.
The narrow elastic fabric is formed and finished in the U.S.
The labels, stickers, and packaging are made and finished in Columbia.
The garments are shipped directly from Colombia into the U.S.
General Note 34, HTSUS, sets forth the criteria for determining whether a good is originating under the CTPA. General Note 34(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 Colombia, the United States, or both;
(ii) the good was produced entirely in the territory of Colombia, the United States, or both, 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 Colombia, the United States, or both, exclusively from materials described in subdivision (b)(i) or (b)(ii) of this note.
General Note 34(d) provides for Textile and apparel articles. It states, in pertinent part, that:
(i) For purposes of this note, a textile or apparel good provided for in chapters 42, 50 through 63, 66, 70 and 94 of the tariff schedule is an originating good if:
(A) each of the non-originating materials used in the production of the good undergoes an applicable change in tariff classification specified in subdivision (o) of this note as a result of production occurring entirely in the territory of Colombia or of the United States, or both, or the good otherwise satisfies the applicable requirements of this note where a change in tariff classification for each non-originating material is not required, and
(B) the good satisfies any other applicable requirements of this note.
Additionally, General Note 34(d)(ii) provides that a textile or apparel good provided for in the tariff schedule chapters enumerated in subdivision (d)(i) of this note and containing elastomeric yarns in the component of the good that determines the tariff classification of the good shall be considered to be an originating good only if such yarns are wholly formed in the territory of Colombia or of the United States, or both.
General Note 34(n)(ii), states:
A requirement of a change in tariff classification in subdivision (o) of this note applies only to non-originating materials. Where such a requirement is written to exclude tariff provisions at the level of a chapter, heading or subheading of the tariff schedule, it shall be construed to mean that the rule requires that materials classified in those excluded provisions must be originating for the good to qualify as an originating good. When a heading or subheading of the tariff schedule is subject to alternative specific rules of origin, a good classified in such a provision may be considered originating if it satisfies one of the alternatives. When a single rule is applicable to a group of headings or subheadings, and that rule specifies a change of heading or subheading, it shall be understood that the change in heading or subheading may occur within a single heading or subheading or between headings or subheadings of the group. When, however, a rule refers to a change in heading or subheading outside that group, the change in heading or subheading must occur from a heading or subheading that is outside the group of headings or subheadings set out in the rule.
Here the component that determines the classification of the two styles of women's apparel is the nylon/spandex knit fabric. The elastomeric and nylon yarns that composed the nylon/spandex knit fabric originate in the U.S. The yarns are then used to knit the fabric in Colombia, thereby making the fabric originating in Colombia. As both the yarns that compose the fabric, and the fabric itself, are originating within either the U.S. or Colombia, General Note 34(o), Chapter 62, rule 2 is satisfied.
General Note 34(o), Chapter 61, Chapter rule 3 states:
Notwithstanding chapter rule 2 for this chapter, a good of this chapter containing fabrics of subheading 5806.20 or heading 6002 shall be considered originating only if such fabrics are both formed from yarn and finished in the territory of Colombia or of the United States, or both.
As mentioned above, the elastomeric and nylon yarns originate in the U.S. The yarns are then knitted in Colombia to form the fabric. Therefore, General Note 34(o), Chapter 61 rule 3 is satisfied. The narrow elastic fabric is formed and finished in the U.S.
GN 34(o), Chapter 61, Chapter rule 4 states:
Notwithstanding chapter rule 2 for this chapter, a good of this chapter containing sewing thread of headings 5204 or 5401 shall be considered originating only if such sewing thread is both formed and finished in the territory of Colombia or of the United States, or both.
Here the sewing thread is formed and finished in Columbia.
Based on the facts provided, both styles qualify for CTPA preferential treatment, because they meet the requirements of HTSUS General Note 34(b)(i). The merchandise will therefore be entitled to a free rate of duty under the CTPA upon compliance with all applicable laws, regulations, and agreements.
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 at https://hts.usitc.gov/current.
The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP.
This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection 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, please contact National Import Specialist Antoinette Peek-Williams at [email protected].
Should you wish to request an administrative review of this ruling, submit a copy of this ruling and all relevant facts and arguments within 30 days of the date of this letter, to the Director, Commercial Rulings Division, U.S. Customs and Border Protection, Regulations & Rulings, 90 K Street N.E. - 10th floor, Washington, DC 20229-1177
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division