CLA 2-OT:RR:NC:N3:348
Mr. John D. Russo
MB Sport, LLC
31 Grove Street
New Canaan, CT 06840
RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of women’s garments from Canada; Article 509
Dear Mr. Russo:
In your letter dated July 12, 2011, you requested a ruling on the status of women’s garments from Canada under the NAFTA.
Style 21107 is a women’s jacket constructed of a heavy weight 63% wool 24% nylon 13% polyester knitted chenille fabric that has been heavily brushed on the underside surface. The garment features a zippered full front opening with a standup collar, two inset pockets at the upper front panels, two inset pockets with buttoned flaps at the lower front panels, long sleeves with capped trim fabric at the sleeve endings, a self-fabric strap with 2 non-functional buttons sewn at the center of the rear panel waist area, and a straight garment bottom with capped trim fabric. The collar and front panel placket are also trimmed with a capped fabric. The garment extends to below the hip area.
Style 21006 is a women’s jacket that is constructed from a 36% wool 25% cotton 25% acrylic 14% nylon knitted fabric that has been brushed on both the outer surface and the underside. The garment features a full front opening with a zipper closure, a self-fabric hood with a drawstring tightener, long raglan sleeves with tight fitting ribbed knit cuffs, two zippered patch pockets at the waist area of the front panels, and a tight fitting ribbed knit bottom band. The jacket extends to below the hip area.
The applicable subheading for style 21007 will be 6102.10.000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Women’s or girls’ overcoats, carcoats, capes, cloaks, anoraks (including ski-jackets), windbreakers and similar articles, knitted or crocheted, other than those of heading 6104: Of wool or fine animal hair. The duty rate will be 55.9 cents/kg + 16.4% ad valorem.
The applicable subheading for style 21006 will be 6102.30.1000, HTSUS, which provides for Women’s or girls’ overcoats, carcoats, capes, cloaks, anoraks (including ski-jackets), windbreakers and similar articles, knitted or crocheted, other than those of heading 6104: Of man-made fibers: Other: Containing 23 percent or more by weight of wool or fine animal hair. The duty rate will be 64.4 ¢/kg + 18.8% ad valorem.
The manufacturing operations for both styles are as follows:
The wool/polyester/nylon/other fiber knit fabric is manufactured in Italy and is shipped to Canada.
In Canada, the fabrics are cut, sewn and assembled into the finished garments.
The neck binding, grommets, drawstring, sewing thread, buttons, zippers and pulls are manufactured in Hong Kong or Canada.
The garment is shipped directly from Canada to the United States.
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.
Based on the facts provided, the goods described above do not qualify for preferential treatment under the NAFTA because none of the above requirements are met.
However, Styles 21107 and 21006 may be subject to a reduced rate of duty based upon the Tariff Preference Levels (TPL) established in Section XI, Additional U.S. Note 3(a), up to the annual quantities specified in subdivision (f)(i) and (ii) of Note 3. Upon completion of the required documentation and up to the specified annual quantities, Styles 21107 and 21006 may be eligible for the preferential rate of Free.
The holding set forth above applies only to the specific factual situation and merchandise identified in the ruling request. This position is clearly set forth in section 19 CFR 177.9(b)(1). This section states that a ruling letter, either directly, by reference, or by implication, is accurate and complete in every material respect.
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 in this ruling, contact National Import Specialist Francine Vivona-Brock at 646-733-3049. 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