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 men’s garments from Canada; Article 509
Dear Mr. Russo:
In your letter dated July 12, 2011, you requested a ruling on the status of men’s garments from Canada under the NAFTA.
Styles 11029 and 11030 are men’s garments constructed from knit fabric that is 43% wool, 38% polyester, 16% nylon, 3% other fibers by weight. The fabric is napped on the inside surface and measures 11 stitches per two centimeters counted in the horizontal direction.
Style 11029 is a cardigan that features a self-fabric hood with a drawstring; a full front opening with a zipper closure; long, hemmed sleeves; pouch pockets below the waist; and a loose fitting, hemmed bottom. Style 11030 is a men’s pullover that features a self-fabric stand-up collar; a partial front opening with a zipper closure; long, hemmed sleeves; faux suede elbow patches; a half-moon at the rear neckline; and a straight, hemmed bottom with side slits.
The applicable subheading for Styles 11029 and 11030 will be 6110.30.1550, Harmonized Tariff Schedule of the United States, (HTSUS), which provides for: sweaters, pullovers, sweatshirts, waistcoats (vests) and similar articles, knitted or crocheted: of man-made fibers: other: containing 23% or more by weight of wool or fine animal hair: other: men’s or boys’. The rate of duty is 17% 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.
The elbow patch fabric is manufactured in Japan 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, 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 11029 and 11030 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) of Note 3. Upon completion of the required documentation and up to the specified annual quantities, Styles 11029 and 11030 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 Mary Ryan at (646) 733-3271. 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