CLA-2-61:OT:RR:NC:TAB:354
Mr. Robert Eisen
Baker & McKenzie LLP
1114 Avenue of the Americas
New York, NY 10036
RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of string knit gloves; Article 509
Dear Mr. Eisen:
In your letter dated May 29, 2008, written on behalf of Ansell Protective Products Inc., you requested a ruling on the status of gloves under the NAFTA.
Style #75-300 is a string-knit glove made of 100% cotton. You state that the non-originating cotton fiber will be imported into the U.S. where it will be spun into cotton yarn. The yarn is sent to Mexico, where it will be used to produce string-knit gloves, also incorporating any additional materials required for production from Mexico.
Style #78-150 is a string-knit glove made of 100% polyester. You state that the non-originating polyester fibers will be imported into Canada from Thailand, where they will be spun into polyester yarn. The yarn will be sent to Mexico where it will be used to produce string-knit gloves, also incorporating any additional materials required for production from Mexico.
Style 75-500 is a string-knit glove made of 100% aramid. You state that the non-originating fibers will be imported into the U.S. from Germany, where they will be spun into yarns. The yarn will be sent to Mexico where it will be used to produce string-knit gloves, also incorporating any additional materials required for production from Mexico.
The applicable tariff provision for style #75-300 will be 6116.92.8800, Harmonized Tariff Schedule of the United States (HTSUS), which provides for gloves, mittens and mitts, knitted or crocheted: other: of cotton: other: other: without fourchettes. The general rate of duty will be 9.4% ad valorem.
The applicable tariff provision for styles #75-500 and #78-150 will be 6116.93.8800, HTSUS, which provides for gloves, mittens and mitts, knitted or crocheted: other: of synthetic fibers: other: other: without fourchettes. The general rate of duty will be 18.6% ad valorem.
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 http://www.usitc.gov/tata/hts/.
General Note 12(b), HTSUS, sets forth the criteria for determining whether a good is originating under the NAFTA. General Note 12(b), HTSUS, (19 U.S.C. § 1202) states, in pertinent part, that
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
(iv) they are produced entirely in the territory of Canada, Mexico and/or the United States but one or more of the nonoriginating materials falling under provisions for "parts" and used in the production of such goods does not undergo a change in tariff classification because--
(A) the goods were imported into the territory of Canada, Mexico and/or the United States in unassembled or disassembled form but were classified as assembled goods pursuant to general rule of interpretation 2(a), or
(B) the tariff headings for such goods provide for and specifically describe both the goods themselves and their parts and is not further divided into subheadings, or the subheadings for such goods provide for and specifically describe both the goods themselves and their parts,
provided that such goods do not fall under chapters 61 through 63, inclusive, of the tariff schedule, and provided further that the regional value content of such goods, determined in accordance with subdivision (c) of this note, is not less than 60 percent where the transaction value method is used, or is not less than 50 percent where the net cost method is used, and such goods satisfy all other applicable provisions of this note.
Style #75-300 - the yarns that are created in the U.S. are made from non-originating fibers of heading 5201.
Styles #75-500 and #78-150 – the yarns that are created in Canada and in the U.S. and are made from non-originating fibers of heading 5503.
General Note 12 (t)/61.39 to the Harmonized Tariff Schedule of the United States (HTSUS), the rule covering this merchandise, states:
A change to Heading 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 6006, 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.
As the non-originating fibers are classified in heading 5201 and 5503, the gloves meet the change in tariff classification required by General Note 12(t)/61.39, HTSUS. Based on the facts provided, the goods described above qualify for NAFTA preferential treatment because they will meet the requirements of HTSUS General Note 12(b)(ii)(A). The goods will therefore be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements.
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 Deborah Marinucci at 646-733-3054.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division