CLA-2-62:OT:RR:NC:N3:361
Mr. Rafael Park
Boas Trading Corp
256 West 38th Street, Suite 1301
New York, NY 10018
RE: The tariff classification and status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA), of women’s pants from Guatemala.
Dear Mr. Park:
In your letter dated July 20, 2011, you requested a ruling on the status of women’s pants under DR-CAFTA.
Style 7101, Tux Pants, is a pair of women’s pants constructed from 68% polyester, 28% rayon and 4 % spandex solid color woven fabric. The pants have a flat waistband, a zippered fly front with two loop and bar closures on the waistband, a narrow satin fabric insert in the middle of the waistband, two side pockets with a pocket bag and hemmed leg openings.
We are returning your sample.
The applicable subheading will be 6204.63.3510, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Trousers…woven: Of synthetic fibers: Trousers: Women’s. The duty rate will be 28.6% 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 fabric for the garment is made in China with U.S. made spandex.
The narrow satin strip is made in China.
The pocketing is made in Asia.
The interlining is made in Asia.
The sewing thread is made in Guatemala with yarns from Korea or China.
Garments are cut, sewn and assembled in Guatemala.
The garments are exported directly from Guatemala 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)/62.29, 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, (71) provides:
Any other fabric, yarn or fiber that the Committee for Implementation of Textile Agreements (CITA) determines in a notice published in the Federal Register on or after March 1, 2006, is not available in commercial quantities in a timely manner in the territories of the parties to the Agreement, as defined in general note 29(a), subject to any quantitative limitations that CITA may establish for the fabric, yarn or fiber.
On September 26, 2007, a notice published by CITA in the Federal Register determined that certain polyester/rayon/spandex, as specified below, are not available in commercial quantities in a timely manner. This product was added to the list in Annex 3.25 Section 4(e) of the CAFTA-DR Agreement in unrestricted quantities.
Certain polyester, rayon and spandex fabric classified in HTSUS subheading 5515.11.0000. Based on the facts provided, the garment described may qualify for DR-CAFTA preferential treatment because garment 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 Peggy Fitzgerald at 646-733-3052. 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