CLA-2-59:OT:RR:NC:TA:348
John Mulvihill
UPS Supply Chain Solutions
One UPS Way
Champlain, NY 12919
RE: Classification and country of origin determination of laminated fabric and swimsuit cups from Canada; 19 CFR 102.21(c)(2); tariff shift; the status under the North American Free Trade Agreement (NAFTA); Article 509.
Dear Mr. Mulvihill:
In your letter dated June 25, 2009, on behalf of your client L. Davis Textiles, you requested a ruling on the status of laminated fabric and swimsuit cups from Canada under NAFTA. The samples are being returned as requested.
The sample designated “A” is a laminated fabric with a cellular middle layer sandwiched between two knit fabric layers. Your letter indicates the knit fabric is constructed of non-originating polyester yarn which is knit into a fabric and dyed in Canada. Also in Canada, this knit fabric is laminated to both sides of what you describe as plastic foam. The composition of the foam is not included in your letter. The correct classification depends on the plastic used to manufacture the foam layer (e.g. polyvinyl chloride, polyurethane, or other than PVC or PU). For purposes of this letter, we will assume the plastic is polyurethane. The same NAFTA rules apply to all possible plastic foam compositions, but the subheading HTSUS number will depend on the actual plastic component of the foam.
You state in your letter that the sample designated as “B” is a swimsuit cup. It measures approximately 9 inches by approximately 7 inches, measuring at its widest points. The swimsuit cup fabric is constructed of laminated knit man-made fibers. The laminated fabric is manufactured, as described above, in Canada. The fabric is then placed in a heated forming press to compress the fabric and create a three dimensional shape, before being cut in a die to be a swimsuit cup.
The applicable tariff provision for Sample “A”, the laminated fabric, will be 5903.20.2500, Harmonized Tariff Schedule of the United States (HTSUS), which provides for textile fabrics impregnated, coated, covered or laminated with plastics, of man-made fibers, not over 70 percent by weight of rubber or plastics. The general rate of duty will be 7.5 percent ad valorem.
Assuming the swimsuit cup will be permanently affixed to the swimwear, the applicable tariff provision for Sample “B” will be 6117.90.9090, HTSUS, which provides for other made up clothing accessories, knitted or crocheted; knitted or crocheted parts of garments or of clothing accessories: parts: other, other: of man-made fibers. The duty rate will be 14.6 percent 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.
For goods classified in heading 5903, General Note 12/59.3 requires:
A change to headings 5903 through 5908 from any other chapter, except from headings 5111 through 5113, 5208 through 5212, 5310 through 5311, 5407 through 5408 or 5512 through 5516.
The laminated fabric satisfies the tariff change requirements set out in the rule stated above.
With regard to the swimsuit cups, General Note 12 (t), Chapter 61, Chapter rule 2 states:
For purposes of determining the origin of a good of this chapter, 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.
The component that determines the classification of the swimsuit cup is the laminated fabric. The applicable tariff heading for laminated fabric is 5903.
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 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.
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 for subheading 5903.20.2500, HTSUS, please contact National Import Specialist Deborah Walsh at (646) 733-3044. If you have any questions regarding the ruling for subheading 6117.90.9090, contact National Import Specialist Kenneth Reidlinger at (646) 733-3053. If you have any questions regarding eligibility for preferential treatment under NAFTA, contact National Import Specialist Rosemarie Hayward at (646) 733-3064.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division