CLA-2-62:OT:RR:NC:3:348
Mark Gitomer
The Production Department, Ltd.
431 Maple Avenue
Pittsburgh, Pa 15218
RE: The tariff classification and status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA), of men’s trousers from El Salvador.
Dear Mr. Gitomer:
In your letter dated March 31, 2009, you requested a ruling on the status of men’s trousers under DR-CAFTA.
Style V47680 is a men’s trouser constructed from 75% polyester, 25% wool, solid color woven twill fabric. The pants have a flat waistband with seven belt loops, a zippered fly front opening with a hook and loop closure on the waistband, a gripper strip on the inside waistband, quarter pockets with pocket bags on each side below the waistband, a welt pocket with a pocket bag on the right rear panel, a welt pocket with a pocket bag and a tab and button closure on the left rear panel, a pleated pocket with a flap on the side of each leg, a small interior patch pocket within each pleated pocket, and merrow stitching on the unfinished legs.
The applicable subheading for Style V47680 is 6203.43.4010, Harmonized Tariff Schedule of the United States (HTSUS), which provides for men’s or boys' … trousers, bib and brace overalls, breeches and shorts: of synthetic fibers: other: other: other: other: trousers and breeches: men’s: The duty rate is 27.9% 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/wool fabric for the outer shell of the garment is manufactured in India.
The polyester/cotton pocket fabric is manufactured the U.S from U.S yarns.
The fabric is shipped to El Salvador to be cut, sewn and assembled into the finished garment.
The filament polyester sewing thread, used to assemble the components, is formed and finished in Honduras.
The gripper strip is composed of rubber latex yarns and is manufactured in the U.S. from U.S. and Malaysian yarns.
The garments are 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. 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.
The merchandise 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)/62.01, 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. You have suggested that the garments may be subject to a reduced rate of duty classified under 9822.05.01.
General Note 29(m)(viii)(B) states:
An apparel good of chapter 61 or 62 of the tariff schedule and imported under heading 9822.05.01 of the tariff schedule shall be considered originating if it 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, and if the fabric of the outer shell, exclusive of collars and cuffs where applicable, is wholly of—
(1) one or more fabrics listed in U.S. note 20 to subchapter XXII of chapter 98; or
(2) one or more fabrics formed in the territory of one or more of the parties to the Agreement from one or more of the yarns listed in U.S. note 20 to such subchapter XXII; or
(3) any combination of the fabrics referred to in subdivision (B)(1), the fabrics referred to in subdivision (B)(2) or one or more fabrics originating under this note.
The originating fabrics referred to in subdivision (B)(3) may contain up to 10 percent by weight of fibers or yarns that do not undergo an applicable change in tariff classification set out in subdivision (n) of this note. Any elastomeric yarn contained in a fabric referred to in subdivision (B)(1), (B)(2) or (B)(3) must be formed in the territory of one or more of the parties to the Agreement.
Chapter 98, subchapter XXII of the HTSUS, U.S. Note 20(a) to that chapter states in pertinent part, that:
Heading 9822.05.01 shall apply to textile or apparel goods of chapters 50 through 63 and subheading 9404.90 that contain any of the fabrics, yarns or fibers set forth herein, are described in general note 29 to the tariff schedule and otherwise meet the requirements of such general note 29.
Within that note, (32) provides:
Woven fabric classified in subheading 5515.13.10, combed of polyester staple fibers mixed with wool, and containing less than 35 percent by weight of wool.
Based on the facts provided, the garment described may qualify for DR-CAFTA preferential treatment because the fabric of the outer shell meets the requirements of HTSUS, General Note 29(m)(viii)(B)(1).
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 classification, contact National Import Specialist Mary Ryan at 646-733-3271. If you have any questions regarding the eligibility under DR-CAFTA, contact National Import Specialist Rosemarie Hayward at 646-733-3064.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division