CLA-2-61:OT:RR:NC:3:358
Mr. Vincent Iacopella
The Janel Group
460-A Hindry Avenue
Inglewood, CA 90301
RE: The tariff classification and status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA), of girl’s knit apparel from Guatemala.
Dear Mr. Iacopella:
In your letter dated November 3, 2010, on behalf of your client Jerry Leigh Inc., you requested a ruling on the status of a girl’s short sleeve knit top and tank top under the DR-CAFTA.
You also inquire if the nylon spandex fabric will qualify for DR CAFTA as Leaver’s Lace under the short supply provisions. A U.S. Customs and Border Protection laboratory report analysis finds that the fabric is warp knit construction and is not lace or Leaver’s Lace.
Style ST9806 consists of a girl’s top and tank top that attach at one shoulder by means of a thread and a thin plastic strip and at the other shoulder by means of a thin plastic strip. The garments are not permanently attached to one another and may be worn separately or together as layering pieces with the top as the outer layer. The top has short sleeves and abbreviated midriff coverage. It is made of 90 percent nylon, 10 percent spandex warp knit open fabric and has an all-over floral design. The tank top has a round neckline, a hemmed bottom and coverage to the waist. It is made of 90 percent cotton, 10 percent polyester finely knit gray jersey fabric.
For the top, Style ST9806, the fabric for the nylon spandex warp knit fabric is produced in Guatemala from nylon fibers and yarns manufactured in China and spandex fibers and yarn manufactured in the United States.
For the tank top, ST9806, the fabric for the cotton jersey fabric is produced in Guatemala from yarns manufactured in El Salvador and fibers manufactured in the United States. The 90 percent cotton, 10 percent polyester rib knit neck binding fabric is produced in Guatemala from yarn manufactured in El Salvador and fibers manufactured in the United States.
The sewing thread is formed and finished in Guatemala. In Guatemala, the fabrics are cut, sewn and assembled into the finished garment. The garments are exported directly from Guatemala to the U.S.
Note 14 of Section XI, of the HTSUSA, requires that textile garments of different headings be classified separately, thus preventing Style ST9806, which consists of two garments, from being classified as a set.
The applicable subheading for the Style ST9806 tank top will be 6109.10.0065, Harmonized Tariff Schedule of the United States (HTSUS), which provides for T-shirts, singlets, tank tops and similar garments, knitted or crocheted, of cotton, women’s or girls’, other, tank tops, girls’. The duty rate will be 16.5% ad valorem.
The applicable subheading for the Style ST9806 top will be 6114.30.1020, Harmonized Tariff Schedule of the United States (HTSUS), which provides for other garments, knitted or crocheted, of man-made fibers, tops, women’s or girls’, other. The duty rate will be 28.2% 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 29, HTSUS, sets forth the criteria for determining whether a good is originating under the DR-CAFTA. General Note 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.
For the top, ST9806, the component that determines the classification is the nylon spandex warp knit fabric.
For goods classified in heading 6114.30, General Note 61.38 requires:
A change to headings 6114 through 6116 from any other chapter, except from headings 5111 through 5113, 5204 through 5212, 5310 through 5311, chapter 54, headings 5508 through 5516 or 6001 through 6006, provided that the good is cut or knit to shape, or both, and sewn or otherwise assembled in the territory of one or more of the parties to the Agreement.
The nylon spandex warp knit fabric contains yarns from China which are classified in heading 5509. Based on the facts provided, the top does not qualify for preferential treatment under DR-CAFTA because (a) it will not be wholly obtained or produced entirely in the territory of one or more DR-CAFTA countries; (b) one or more of the non-originating materials used in the production of the goods will not undergo the change in tariff classification required by General Note 29(n)/61.25 HTSUS; and (c) it will not be produced entirely in the territory of one or more of the DR-CAFTA parties exclusively from originating materials.
For the tank top, ST9806, the component that determines the classification is the 90% cotton 10% polyester jersey knit fabric. Based on the facts provided, the tank top qualifies for DR-CAFTA preferential treatment, because it will meet the requirements of HTSUS General Note 29(b)(ii)(A). The component that determines the classification is the cotton polyester knit fabric which is an originating material. The tank top 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 Bruce Kirschner at 646-733-3048.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division