CLA-2-64:S:N:N8:346 806605
Mr. William J. Maloney
Rode & Qualey
295 Madison Ave.
New York, N.Y. 10017
RE: The tariff classification of a sandal from Costa Rica; CBI-2
Dear Mr. Maloney:
In your letter dated February 1, 1995, on behalf of your
client, Deckers Outdoor Corporation, you requested a tariff
classification ruling for a sandal you identify as "Teva All-
Terrain". This sandal, you state, will be manufactured in Costa
Rica from materials and component parts that are of U.S. origin.
You have enclosed a sample of the finished sandal as it will
be imported into the U.S. The upper is comprised of various 3/4
inch wide textile straps which pass through and around three
triangular shaped plastic fittings and are held to the foot as well
as around the ankle by several hook and loop closure straps. The
sandal has a 1/2 inch thick, two layered EVA rubber/plastic bottom,
with a small rubber/plastic arch cookie wedge insert between the
layers. The various component parts of a disassembled sandal were
also submitted.
In your letter, you state that the "fabric" from which the
straps of this sandal's textile upper are made will be woven in
Costa Rica from U.S. origin yarn. The woven fabric will be cut to
shape and combined with "plastic fittings" and "hook and loop tape"
components of U.S. origin to form the sandal's upper.
Additionally, you state that the "topsole" layer of the sandal's
rubber/plastic bottom is cut to shape in the U.S. from EVA plastic
sheet imported from the Philippines. The cut to shape "outersole"
layer of EVA plastic and the "arch cookie" component parts, you
affirm, are entirely U.S. made. The assembly of the sole
components and the combination of the sole components with the
textile upper parts to make the finished sandal will all be done in
Costa Rica. All the fabricated components and materials will be
shipped directly from the USA to Costa Rica without entering the
commerce of any other country.
Therefore, this sandal will be classified in subheading
9802.00.5010, Harmonized Tariff Schedule of the United States
(HTS), free of duty, as an article, which was returned to the U.S.
after having been exported for repairs or alterations, not made
pursuant to a warranty, and which met the conditions of U.S. note
2-b to Subchapter II of Chapter 98. We assume that you will be
able to supply the port of entry with whatever documents or other
evidence it deems necessary to confirm that those conditions have,
in fact, been met. Customs Headquarters has issued no directives
or guidelines so it would likely be useful to discuss the
documentation and evidence required with the Customs personnel in
each district in which you may make entry.
Items classified in 9802.00.5010 do not need to have any
country of origin marking when imported into the U.S.
Per Statistical Note 2 to Subchapter II, you must split out on
the Customs entry, "the dutiable value , i.e., the value of the
foreign processing" and assign to it the classification that would
ordinarily apply in the absence of US note 2-b to that Subchapter.
Note that in this context, there is never any duty actually payable
on this "dutiable value". The classification that would ordinarily
apply to this footwear item is 6404.19.35, HTS, based on the
samples and the information you have supplied.
This ruling is being issued under the provisions of Section
177 of the Customs Regulations (19 C.F.R. 177).
A copy of this ruling letter should be attached to the entry
documents filed at the time this merchandise is imported. If the
documents have been filed without a copy, this ruling should be
brought to the attention of the Customs officer handling the
transaction.
Sincerely,
Jean F. Maguire
Area Director
New York Seaport