CLA-2-61:OT:RR:NC:TA:354
Ms. Jeannine Greener
Eddie Bauer, LLC.
10401 NE 8th Street, Ste 500
Bellevue, WA 98004
RE: The tariff classification and status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA), of women’s undergarment from El Salvador.
Dear Ms. Greener:
In your letter dated January 19, 2010, you requested a tariff classification ruling. The sample will be returned as you request.
You have submitted a women’s undergarment that will be marketed and sold as a base-layer undergarment that provides comfort, wicking and thermal properties, allowing the skin to breathe with fabric that dries quickly with an anti-microbial finish.
Style 009-2439 is a size medium women’s thermal undershirt constructed of a 98% polyester and 2% spandex knit fabric. The garment features long sleeves with thumb loops at the hemmed arm openings, a crew neck, flatlock stitching at the seams, a hemmed bottom and the “First Ascent” logo on the bottom of the left sleeve. You state in your letter that the undergarment will also be offered in style #s 009-2438 (petite), 009-2440 (tall) and 009-2441 (plus size).
You state that for retail store sales, the undergarment will be imported packed in a 100% polyester black mesh fabric carrying bag. The carrying bag measures 10 inches long by 6 inches wide and has a drawcord closure. The fabric, nylon cord and toggle are produced in China. The bag will be assembled in El Salvador using thread formed and finished in El Salvador. The carrying bag is just big enough to hold the undergarment and is intended to store the undergarment when it is not in use. The instant carrying bag is sold as a unit with the undergarment. It is not specially shaped or fitted to hold its contents and is suitable for repetitive use. Based upon the foregoing precedent the carrying bag and undergarment shall be classified as a composite article. The undergarment lends the essential character to the unit. Accordingly, the carrying bag shall be classified with the undergarment.
The applicable tariff provision for the undergarment will be 6109.90.1075, Harmonized Tariff Schedule of the United States (HTSUS), which provides for T-shirts, singlets, tank tops and similar garments, knitted or crocheted: Of other textile materials: Of man-made fibers . . . Women’s or girls’: Thermal undershirts. The rate of duty will be 32% 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/.
The manufacturing operations for this garment are as follows:
The polyester and spandex knit fabric for the garment is manufactured in the U.S. from yarns extruded in the U.S.
The fabric is shipped to El Salvador to be cut, sewn and assembled into the finished garment.
The sewing thread, used to assemble the components, is formed and finished in El Salvador.
The heat transfer label is manufactured in the U.S from U.S. ink. The heat transfer label is shipped to El Salvador where it is applied.
The garment is exported directly from El Salvador to the U.S.
General Note 29, HTSUS, sets forth the criteria for determining whether a good is originating under the DR-CAFTA. GN 29(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 one or more of the parties to the Agreement;
(ii) the good was produced entirely in the territory of one or more of the parties to the Agreement, and—
(A) each of the nonoriginating 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 one or more of the parties to the Agreement exclusively from originating materials.
Based on the facts provided, styles 009-2438, 009-2439, 009-2440 and 009-2441 qualify for DR-CAFTA preferential treatment, because they meet the requirements of HTSUS GN 29(b)(iii). Styles 009-2438, 009-2439, 009-2440 and 009-2441 were produced entirely in the territory of one or more the parties to the Agreement exclusively from originating materials. The merchandise will therefore be entitled to a free rate of duty under the DR-CAFTA upon compliance with all applicable laws, regulations, and agreements.
This ruling is being issued under the provisions of Part 177 of the Customs 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, contact National Import Specialist Robert Ivers at (646) 733-3054.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division