CLA-2-61:RR:NC:TAB:354 D81931
Ms. Patricia A. Perez
International Trade & Commerce, Inc.
1601 W. Calton Road
Laredo, TX 78041
RE: The tariff classification and status under the North
American Free Trade Agreement (NAFTA), of coated knit gloves
from Mexico; Article 509. Country of origin.
Dear Ms Perez:
In your letter dated August 6, 1998, on behalf of Nimex
Saltillo SA de CV, you requested a ruling on the status of coated
knit gloves from Mexico under the NAFTA.
The submitted sample, Style NEW AK22, is a finely knit
cotton glove which you indicate is manufactured in Malaysia. In
Mexico this knit glove is completely covered with a nitrile latex
glove using an adhesive. The gauntlet style gloves feature a
textured palm. You indicate that the gloves will be packed in
polybags containing 1 dozen pairs.
The applicable tariff provision for the coated knit gloves
will be 6116.1.06500, Harmonized Tariff Schedule of the United
States Annotated (HTSUSA), which provides for gloves, mittens and
mitts, knitted or crocheted: impregnated, coated or covered with
plastics or rubber: without fourchettes: other: other. The
general rate of duty will be 11.2 percent ad valorem.
The subject merchandise undergoes processing operations in
Mexico which is a country provided for under the North American
Free Trade Agreement (NAFTA). General Note 12, HTSUSA,
incorporates Article 401 of the NAFTA into the HTSUSA. Note
12(a) provides, in pertinent part:
* * *
(ii) Goods that originate in the territory of a NAFTA party
under the terms of subdivision (b) of this note and that qualify
to be marked as goods of Mexico under the terms of the marking
rules . . . and are entered under a subheading for which a rate
of duty appears in the "Special" subcolumn followed by the symbol
"MX" in parentheses, are eligible for such duty rate... .
[Emphasis added]
Accordingly, the merchandise at issue will be eligible for the
"Special" "MX" rate of duty provided it is a NAFTA "originating"
good under General Note 12(b), HTSUSA, and it qualifies to be
marked as a good of Mexico. Note 12(b) provides in pertinent
part,
For the purposes of this note, goods imported into the
customs territory of the United States are eligible for the
tariff treatment and quantitative limitations set forth in the
tariff schedule as "goods originating in the territory of a NAFTA
party" only if--
(i) they are goods wholly obtained or produced entirely in the territory of Canada, Mexico and/or the United States; or
(ii) they have been transformed in the territory of Canada, Mexico and/or the United States so that--
(A) except as provided in subdivision (f) of this note,
each of the non-originating materials used in the
production of such goods undergoes a change in tariff
classification described in subdivisions (r), (s) and
(t) of this note or the rules set forth therein, or
(B) the goods otherwise satisfy the applicable
requirements of subdivisions (r), (s) and (t) where no
change in tariff classification is required, and the
goods satisfy all other requirements of this note; or
(iii) they are goods produced entirely in the territory of
Canada, Mexico and/or the United States exclusively from
originating materials; or
* * *
The subject merchandise qualifies for NAFTA treatment only
if the provisions of General Note 12(b)(ii)(A) are met, that is,
if the merchandise is transformed in the territory of Mexico so
that the non-originating material undergoes a change in tariff
classification as described in subdivision (t).
The coated gloves are classified in subheading ,
6116.1.06500 HTSUSA. For heading 6116, HTSUS, subdivision (t),
Chapter 61, rule 39, states that:
A change to headings 6113 through 6117 from any other
chapter, except from headings 5106 through 5113, 5204, through
5212, 5307 through 5308 or 5310 through 5311, chapter 54, or
heading 5508 through 5516 or 6001 through 6002, provided that the
good is both cut (or knit to shape) and sewn or otherwise
assembled in the territory of one or more of the NAFTA parties.
The knit glove is formed in Malaysia and considered a
non-originating material. As a heading 6116 HTSUS item, it is
excepted by rule 39 to chapter 61, the glove from Malaysia does
not undergo the requisite change in tariff classification.
Accordingly, the coated knit glove from Mexico is not eligible
for the NAFTA preference.
Country of origin
On September 5, 1995, Customs published in the Federal
Register (60 FR 46188) T.D. 95-69 which set forth final
amendments to the Customs Regulations to implement the provisions
of section 334(b) of the Uruguay Round Agreements Act ("the
Act"), Public Law 103-465, 108 Stat. 4809, hereinafter 19 U.S.C.
3592, regarding the country of origin of textile and apparel
products. These final regulations apply to goods entered, or
withdrawn from warehouse, for consumption on or after July 1,
1996. The regulatory provisions in T.D. 95-69 that implement the
basic origin principles of section 334(b) of the Act are
contained in a new 102.21 of the Customs Regulations (19 C.F.R.
102.21).
The final rule for the rules for determining country of
origin of a good for purposes of Annex 311 of the NAFTA was
published by Customs on June 6, 1996, in the Federal Register (61
FR 28932). Therein it was stated, in pertinent part:
New 102.21 was modeled on the approach taken in the
interim Part 102 texts as published in T.D. 94-4 and thus
incorporates a general statement of applicability (paragraph
(a)), various definitions (paragraph (b)), general origin rules
(paragraphs (c) and (d)), and specific tariff shift and/or other
requirements (paragraph (e)) that apply under the second general
rule. Of particular note for purposes of the present document is
the definition of "textile or apparel product" in 102.21(b)(5)
which delineates the class of goods covered by the 102.21 rules.
That definition identifies those goods with reference to
classification in the HTSUS and refers to Chapters 50 through 63
(that is, all of Section XI) of the HTSUS as well as to specific
headings and 6-, 8- or 10-digit subheadings of the HTSUS that
fall outside Section XI. Thus, if a good is classifiable in an
HTSUS provision listed in 102.21(b)(5), precedence must be given
to the 102.21 rules over any other regulatory provision with
regard to that good, including any origin rules contained
elsewhere in part 102.
Accordingly, as the subject merchandise is classified in
heading 6116, HTSUS, as an apparel product identified by
102.21(b)(5), the 102.21 rules take precedence over any other
rules of origin to determine the appropriate country of origin.
Paragraph (c)(1) states that "The country of origin of a
textile or apparel product is the single country, territory, or
insular possession in which the good was wholly obtained or
produced." As the subject merchandise is not wholly obtained or
produced in a single country, territory or insular possession,
paragraph (c)(1) of Section 102.21 is inapplicable.
Paragraph (c)(2) states that "Where the country of origin of
a textile or apparel product cannot be determined under paragraph
(c)(1) of this section, the country of origin of the good is the
single country, territory, or insular possession in which each
foreign material incorporated in that good underwent an
applicable change in tariff classification, and/or met any other
requirement, specified for the good in paragraph (e) of this
section".
Paragraph (e) states that "The following rules shall apply
for purposes of determining the country of origin of a textile or
apparel product under paragraph (c)(2) of this section":
We have determined that the proper classification of the
subject articles is within heading 6116 of the Harmonized Tariff
Schedule of the United States (HTSUS). The applicable rule is
found at 19 C.F.R. 102.21(e), 6101-6117 which requires:
(1) If the good is not knit to shape and consists of two or
more component parts, a change to an assembled good of
heading 6101 through 6117 from unassembled components,
provided that the change is the result of the good being
wholly assembled in a single country, territory, or insular
possession.
(2) If the good is not knit to shape and does not consist of
two or more component parts, a change to heading 6101
through 6117 from any heading outside that group, except
from heading 5007, 5111 through 5113, 5208 through 5212,
5309 through 5311, 5407 through 5408, 5512 through 5516,
5806, 5809 through 5811, 5903, 5906 through 5907, and 6001
through 6002, and subheading 6307.90, and provided that the
change is the result of a fabric-making process.
(3) If the good is knit to shape, a change to heading 6101
through 6117 from any heading outside that group, provided
that the knit-to-shape components are knit in a single
country, territory, or insular possession.
As the subject merchandise is not knit to shape, consists of
two or more component parts and is not assembled in one country,
Section 102.21(c)(2) is not applicable to this merchandise.
Paragraph (c)(3) states that, "Where the country of origin
of a textile or apparel product cannot be determined under
paragraph (c)(1) or (2) of this section":
(i) If the good was knit to shape, the country of origin of
the good is the single country, territory, or insular
possession in which the good was knit; or
(ii) Except for goods of heading 5609, 5807, 5811, 6213,
6214, 6301 through 6306, and 6308, and subheadings
6209.20.5040, 6307.10, 6307.90, and 9404.90, if the good was
not knit to shape and the good was wholly assembled in a
single country, territory, or insular possession, the
country of origin of the good is the country, territory, or
insular possession in which the good was wholly assembled.
As this merchandise is not knit to shape and was not wholly
assembled in a single country it is excepted from provision (ii),
paragraph (c)(3) is inapplicable.
Paragraph (c)(4) states that, "Where the country of origin
of a textile or apparel product cannot be determined under
paragraph (c) (1), (2) or (3) of this section, the country of
origin of the good is the single country, territory, or insular
possession in which the most important assembly or manufacturing
process occurred".
In the case of the subject merchandise, important assembly
and manufacturing operations occur in both Malaysia and Mexico.
Neither the knit glove formation nor the latex coating process is
considered more important than the other, paragraph (c)(4) is not
applicable to this merchandise.
Paragraph (c)(5) states that, "Where the country of origin
of a textile or apparel product cannot be determined under
paragraph (c) (1), (2), (3) or (4) of this section, the country
of origin of the good is the last country, territory or insular
possession in which an important assembly or manufacturing
process occurred". Accordingly, in the case of the subject
coated glove, the country of origin is conferred in the last
country in which an important assembly or manufacturing process
occurred, that is, Mexico.
This ruling is being issued under the provisions of Part 181
of the Customs Regulations (19 C.F.R. 181).
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 Brian
Burtnik at 212-466-5880.
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, Headquarters, U.S. Customs
Service, 1300 Pennsylvania Ave. N.W., Washington, D.C. 20229.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division