CLA-2-62:OT:RR:NC:TA:348
Ms. Margo Isbister
Caliboo Hats Inc.
9075 Scurfield Drive NW
Calgary, Alberta
Canada T3L 1L3
RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA) of accessories from Canada; Article 509
Dear Ms. Isbister:
In your letter dated January 18, 2011, you requested a ruling on the status of clothing accessories from Canada under the NAFTA. The samples are being retained by our office.
The submitted sample, Style 23, is a flower composed of silk. The sample has a jeweled stone in the center of the flower and an alligator clip attached to the back.
The submitted sample, Style 88, is a grosgrain bow. The bow is composed polyester grosgrain ribbon. The sample has a jeweled stone in the center and an alligator clip attached to the back.
The submitted sample, Style 4282, is a headband with a grosgrain bow. The headband is composed of 75% cotton and 25% spandex. The bow is composed of polyester grosgrain ribbon and polyester ribbon and features a jeweled stone in the center and an alligator clip attached to the back.
The submitted sample, Style C012031m, is a baby’s hat. The baby’s hat is composed of acrylic yarns and is hand crocheted.
The bows and flowers will be imported with the headband or hat. Each sample will also be imported separately. Although the items are worn together, each item can also be worn separately and will be classified as a separate item.
The applicable subheading for Style 23 will be 6217.10.9550, HTSUS , which provides for Other made up clothing accessories; parts of garments…Accessories: Other: Other, Other. The duty rate will be 14.6 percent ad valorem.
The applicable subheading for Style 88 and 4282 (bow) will be 6217.10.9530, HTSUS , which provides for Other made up clothing accessories; parts of garments…Accessories: Other: Other, Of man-made fibers." The duty rate will be 14.6 percent ad valorem.
The applicable subheading for Style 4282 (headband) will be 6217.10.8500, HTSUS, which provides for "Other made up clothing accessories, Other, Headbands, ponytail holders and similar articles." The duty rate will be 14.6 percent ad valorem.
The applicable subheading for Style C012031m will be 6505.90.6030, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Hats or other headgear, knitted or crocheted, or made from lace, felt or other textile fabrics, in the piece (but not in strips)…Other: Other: Of man-made fibers: Knitted or crocheted or made up of from knitted or crocheted fabric: Not in part of braid, For babies.” The rate of duty will be 20 cents per kilogram plus 7 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 the World Wide Web at http://www.usitc.gov/tata/hts/.
The manufacturing operations for Style 23 are as follows:
The silk flower petals from China are imported in Canada. In Canada, the flower petals are sewn together to create a flower head. The country of origin for the yarns and fibers are unknown.
In Canada, a textile covered alligator clip is attached to the back of the flower head. The origin of the alligator clip is unknown.
In Canada, the acrylic gemstone is attached to the center of the flower head. The origin of the gemstone is unknown.
The item is imported directly into the U.S.
The manufacturing operations for Style 88 are as follows:
The polyester grosgrain ribbon is imported into Canada from the U.S. The ribbon is cut to form loops and create a bow. The polyester yarns and fibers for the polyester ribbon are manufactured in the U.S.
In Canada, a textile covered alligator clip is attached to the back of the bow. The origin of the alligator clip is unknown.
In Canada, the acrylic gemstone is attached to the center of the bow. The origin of the gemstone is unknown.
The item is imported directly into the U.S.
The manufacturing operations for Style 4282 (bow) are as follows:
The polyester grosgrain ribbon bow is imported from China into Canada.
In Canada, a textile covered alligator clip is attached to the back of the bow. The origin of the alligator clip is unknown.
In Canada, the acrylic gemstone is attached to the center of the bow. The origin of the gemstone is unknown.
The item is imported directly into the U.S.
The manufacturing operations for Style 4282 (headband) are as follows:
The headband is imported into Canada from the U.S. The polyester yarns and fibers for the headband are manufactured in the U.S.
In Canada, a ½ inch grosgrain ribbon is sewn onto the headband. The origin of ribbon is unknown.
The item is imported directly into the U.S.
The manufacturing operations for Style C012031m are as follows:
The Canadian acrylic is dyed and spun into yarn in Canada.
In Canada, the yarn is crocheted into hats.
The item is imported directly into the U.S
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.
General Note 12 (t), Chapter 62, Chapter rule 3 states in pertinent part:
For purposes of determining whether a good of this chapter is originating, 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 for Style 23 is the silk fabric. The component that determines the classification for Style 88, 4282 (bow) and 4282 (headband) is the man-made fabric.
For goods classified in heading 6217, General Note 12 (t), 62.28 requires:
A change to headings 6104.41 through 6104.49 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 both cut or sewn or otherwise assembled in the territory of one or more of the parties to the Agreement.
The silk fabric for Style 23 is classified in Chapter 50. The silk fabric meets the terms of the tariff shift.
The man-made fabric for Style 88 and 4282 (headband) is stated to be originating. Since the fabric is stated to be originating, it does not need to meet the terms of the tariff shift.
The man-made fabric for Style 4282 (bow) is classified in Chapter 54 or 55. Style 4282(bow) does not meet the terms of the tariff shift.
Based on the facts provided, Style 23, 88 and 4282 (headband) as described above qualify for NAFTA preferential treatment, because they will meet the requirements of HTSUS General Note 12(b)(ii)(A). Based on the facts provided, Style C012031m as described above qualifies for NAFTA preferential treatment, because it meets the requirement of HTSUS GN 12(b)(iii). The goods will therefore be entitled to a Free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements.
However, Style 4282 (bow) does not qualify for NAFTA preferential treatment, because it does not meet the requirements of HTSUS GN12(b)(ii)(A). Style 4282 (bow) will not be entitled to a Free rate of duty under the NAFTA.
You also inquire about the country of origin and marking requirements for this product. The marking statute, Section 304 of the Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless excepted, every article of foreign origin (or its container) imported into the United States shall be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article (or its container) will permit, in such a manner as to indicate to the ultimate purchaser in the United States the English name of the country of origin of the article.
As provided in Part 134.41(b), Customs Regulations (19 CFR 134.41(b), the country of origin marking is considered conspicuous if ultimate purchaser in the United States is able to find the marking easily and read it without strain.
With regard to the permanency of a marking, Part 134.41(a), Customs Regulations (19 CFR 134.41(a), provides that as a general rule marking requirements are best met by marking worked into the article at the time of manufacture. For example, it is suggested that the country of origin on metal articles be die sunk, molded in, or etched. However, Part 134.44, Customs Regulations (19 CFR 134.44), generally provides that any marking that is sufficiently permanent so that it will remain on the article until it reaches the ultimate purchaser unless deliberately removed is acceptable. In the case of the subject merchandise, proper country of origin information about each part of the item on the outside of the retail package would be sufficient. The sample was in part correctly marked. The addition to the label should include the country of origin of the flower or bow.
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 classification, contact the National Import Specialist at 646-733-3053. If you have any questions regarding the eligibility under NAFTA, contact Rosemarie Hayward at 646-733-3064.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division