CLA-2-61:OT:RR:NC:3:358
Ms. Kay Morrell
JCPenney Purchasing Corporation
6501 Legacy Drive MS2316
Plano, TX 75024-3698
RE: The tariff classification and status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA), of three girls’ knitted garments from Guatemala.
Dear Ms. Morrell:
In your letter dated December 19, 2011, you requested a ruling on the status of three girls’ sleeveless garments under the DR-CAFTA.
Styles 15535A, 15535B and 15535C are girls’ tank tops with narrow lace fabric at the armholes, shoulder straps and necklines. The lace fabric forms the shoulder straps for Styles 15535A and 15535C. The solid color items have front and back drop necklines, three quarter to one and a quarter inch wide shoulder straps, and hemmed bottoms. The front and back panels are made of two by two rib knit cotton fabric.
The Style 15535A and 15535B warp knit lace is made of 93% nylon, 7% spandex fabric.
The Style 15535C warp knit lace is made of 100% nylon fabric.
The rib knit cotton fabric is produced in Guatemala from yarns that are formed and finished in the United States and/or Guatemala. The sewing thread is formed and finished in the United States and/or Guatemala. The Style 15535A and 15535B lace is made in China and is a fabric of heading 6002. The Style 15535C lace is made in China and is a fabric of heading 6003. In Guatemala, the fabrics are cut, sewn and assembled into the finished garments. The garments are exported directly from Guatemala to the U.S.
The essential character of the tank tops is imparted by the rib knit cotton fabric.
The applicable subheading for Styles 15535A, 15535B and 15535C will be 6109.10.0065, Harmonized Tariff Schedule of the United States (HTSUS), which provides for T-shirts, singlets, tank tops and similar garments, knitted or crocheted, of cotton, women’s or girls’, other, tank tops, girls’. The duty rate will be 16.5% 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/.
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.
Based on the facts provided, Styles 15535A and 15535B do not qualify for DR-CAFTA preferential treatment, because they will not meet the requirements of HTSUS General Note 29(b)(ii)(A). General Note 29(n) Chapter 61, Chapter Rule 3 states in pertinent text as follows,”… a good of this chapter…containing fabrics of subheading 5806.20 or heading 6002 shall be considered originating only if such fabrics are both formed from yarn and finished in the territory of one or more of the parties to the Agreement.” The Style 15535A and Style 15535B Chinese lace fabric is of heading 6002 is not an originating material because it is not both formed from yarn and finished in the territory of one or more of the parties to the Agreement.
Styles 15535A and 15535B do not qualify for preferential treatment under DR-CAFTA and a free rate of duty.
For Style 15535 C, General Note 29(n) Chapter 61, Chapter Rule 2 states,
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 is the cotton knit fabric which is an originating material. The cotton knit fabric is manufactured in Guatemala from yarns that are formed and finished in the United States and/or Guatemala. Since the fabric is stated to be an originating material it does not have to meet the terms of the tariff shift rule.
General Note 29 (n), Chapter 62, Chapter rule 4 states:
Notwithstanding chapter rule 2 to this chapter, a good of this chapter containing sewing thread of headings 5204, 5401 and 5508 shall be considered originating only if such sewing thread is both formed from yarns and finished in the territory of one or more of the parties to the Agreement.
The sewing thread used to assemble the garment will be formed and finished in one or more of the parties to the Agreement.
Based on the facts provided, Style 15535C qualifies for DR-CAFTA preferential treatment, because it will meet the requirements of HTSUS General Note 29(b)(ii)(A). Style 15535C will therefore be entitled to a free rate of duty under the DR-CAFTA upon compliance with all applicable laws, regulations, and agreements.
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 ruling, contact National Import Specialist Bruce Kirschner at 646-733-3048.
Sincerely,
Thomas J. Russo
Director
National Commodity Specialist Division