CLA-2-61:OT:RR:NC:N3:354
Mr. Alfredo R. Canales
Arc Custom Brokers
14602 Atlanta Dr.
Laredo, TX 78045
RE: The tariff classification, country of origin determination and status under the North American Free Trade Agreement (NAFTA), of garments from Mexico; Article 509
Dear Mr. Canales:
In your letter dated April 22, 2013, you requested ruling on behalf of your client, Escant’e Inc, on the status of garments from Mexico under NAFTA. The samples submitted will be retained by this office.
Style 24471 is a woman’s underwear teddy constructed of man-made fibers. The garment features adjustable shoulder straps, underwire cups and a cotton lined crotch with a snap closure. The cups and lower portion of the body feature lace-like knit fabric.
Style 30738H consists of a woman’s bustier styled garment with permanent adjustable garters and a separate thigh high. You state there is also a G-string included but no sample was submitted. The bustier styled garment is constructed of 91% nylon, 9% elastane knit fabric. The garment features a V-shaped neckline, elasticized and adjustable shoulder straps and a lace-like fabric overlay added to the bust area and the bottom of the garment. The thigh high is constructed of 100% nylon.
Style 92165 is a corset constructed of 100% polyester woven fabric and inside mesh lining constructed of 100% nylon. The garment has been designed to cinch the waist and measures approximately 15 ½ inches in the front and 12 inches in the back. The corset features 12 vertical stays, a zippered front and a lace-up back.
Style 31398 is a two piece set consisting of a woman’s top and g-string. The babydoll styled top is constructed from 92 % nylon and 8% elastane mesh knit fabric. The garment features a V-shaped front neckline with a contrasting color bow in the center; defined bust cups overlaid with a decorative embroidered design and underwire; a bottom finished with a three inch wide double ruffle band and a 5/8 inch wide contrasting color band at the seam; and a keyhole opening in the back with a decorative textile bow. The upper back of the garment extends straight across from side seam to side seam, exposing the upper half of the back. The matching G-string of style 31398 is also constructed of 92% nylon and 8% elastane mesh knit fabric and features a cotton lined crotch panel, an elasticized waist and strings.
The applicable subheading for the top of style 31398 will be 6114.30.1020, Harmonized Tariff Schedule of the United States (HTSUS), which provides for other garments, knitted: of man-made fibers: tops: women’s. The duty rate will be 28.2% ad valorem.
The applicable subheading for style 24471 and the G-string of style 31398 will be 6108.92.0015, HTSUS, which provides for women’s or girls’ slips, petticoats, briefs, panties, nightdresses, pajamas, negligees, bathrobes, dressing gowns and similar articles, knitted or crocheted: other: of man-made fibers: underwear: other: women’s. The rate of duty will be 16 percent ad valorem.
The applicable subheading for style 92165 will be 6212.30.0020, HTSUS, which provides for Brassieres, girdles, corsets, braces, suspenders, garters and similar articles and parts thereof, whether or not knitted or crocheted: Corsets: of man-made fibers. The duty rate will be 23.5 percent ad valorem.
The applicable subheading for style 30738H bustier styled garment with garters will be 6212.90.0030, HTSUS, which provides for Brassieres, girdles, corsets, braces, garters and similar articles and parts thereof, whether or not knitted or crocheted: Other: Of man-made fibers or man-made fibers and rubber or plastics. The duty rate will be 6.6 percent ad valorem.
The applicable subheading for the thigh high of style 30738H will be 6115.30.9010, HTSUS, which provides for other "Panty hose, tights, stockings, socks and other hosiery: Other women’s full-length or knee-length hosiery, measuring per single yarn less than 67 decitex: Other…Of man-made fibers".
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 are as follows:
Style 24471- teddy
The man-made knit fabric, for the body of the garment, is manufactured in Mexico from Mexican yarns.
The man-made lace-like knit fabric of the remainder of the body (cups and lower portion) is made in China.
The crotch tape is made in China.
The gusset crotch panel, elastic, wire, plastic ring, plastic sliding, sewing thread, insert and wire coverings are made in Mexico.
All fabrics are cut, sewn and assembled into the finished garment in Mexico. The garment is exported directly from Mexico to the U.S.
Style 30738H- bustier styled garment with garters
The man-made knit fabric, for the body of the garment, is manufactured in Mexico from Mexican yarns.
The straps, elastic band, bow, plastic ring, plastic sliding, plastic loops and sewing thread are all made in Mexico.
The lace-like knit fabric overlays are manufactured in China.
All fabrics are cut, sewn and assembled into the finished garment in Mexico. The garment is exported directly from Mexico to the U.S.
30738H- thigh high
The thigh high is manufactured in Mexico from Mexican yarns.
Style 92165
The 100% woven polyester fabric, for the body of the garment, is manufactured in China.
The plastic zipper is made in China
The metal bone, ribbon, body lining, bone fabric covering are made in Mexico.
The back eyelets are made in the United States.
The fabrics are cut, sewn and assembled into the finished garment in Mexico. The garment is exported directly from Mexico to the U.S.
Style 31398-top
The knit man-made fabric, for the body of the garment, is manufactured in Mexico from Mexican yarns.
The elastic, bow, plastic ring, plastic sliding, wire, sewing thread, wire covering and insert are made in Mexico
The lace-like knit fabric overlays are made in China.
The fabrics are cut, sewn and assembled into the finished garment in Mexico. The garment is exported directly from Mexico to the U.S.
Style 31398- G-string
The knit man-made fabric, for the body of the garment, is manufactured in Mexico from Mexican yarns.
The cotton gusset is made in Mexico.
The elastic is made in Mexico.
The fabrics are cut, sewn and assembled into the finished garment in Mexico. The garment is exported directly from Mexico to 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.
Chapter 61, Chapter rule 2 and 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.
For goods classified in subheading, 6108.92, General Note 12/ 61.34 requires:
A change to subheadings 6108.91 through 6108.99 from any other chapter, except from headings 5106 through 5113, 5204 through 5212, 5307 through 5308 or 5310 through 5311, chapter 54, or headings 5508 through 5516 or 6001 through 6006, provided that the good is both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or more of the NAFTA parties.
For goods classified in subheadings, 6212.30 and 6212.90, General Note 12/ 62.37 requires:
A change to subheadings 6212.20 through 6212.90 from any other chapter, except from headings 5106 through 5113, 5204 through 5212, 5307 through 5308 or 5310 through 5311, chapter 54, or headings 5508 through 5516, 5801 through 5802 or 6001 through 6006, provided that the good is both cut and sewn or otherwise assembled in the territory of one or more of the NAFTA parties.
For goods classified in subheading, 6114.30, General Note 12/ 61.39 requires:
A change to headings 6113 through 6117 from any other chapter, except from headings 5106 through 5113, 5204 through 5212, 5307 through 5308 or 5310 through 5311, chapter 54, or heading 5508 through 5516 or 6001 through 6006, provided that the good is both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or more of the NAFTA parties.
Based on the facts provided, styles 24471, 30738H and 31398, qualify for NAFTA preferential treatment, because they will meet the requirements of HTSUS General Note 12(b)(ii). 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 92165 does not qualify for preferential treatment under the NAFTA because none of the above requirements are met. The component that determines the classification is composed of 100% non-originating polyester woven fabric. This fabric is classified in Chapter 54 and does not meet the terms of the tariff shift.
COUNTRY OF ORIGIN - LAW AND ANALYSIS: Section 334 of the Uruguay Round Agreements Act (codified at 19 U.S.C. 3592), enacted on December 8, 1994, provided rules of origin for textiles and apparel entered, or withdrawn from warehouse for consumption, on and after July 1, 1996. Section 102.21, Customs Regulations (19 C.F.R. 102.21), published September 5, 1995 in the Federal Register, implements Section 334 (60 FR 46188). Section 334 of the URAA was amended by section 405 of the Trade and Development Act of 2000, enacted on May 18, 2000, and accordingly, section 102.21 was amended (68 Fed. Reg. 8711). Thus, the country of origin of a textile or apparel product shall be determined by the sequential application of the general rules set forth in paragraphs (c)(1) through (5) of Section 102.21. Paragraph (c)(1) states, “The country of origin of a textile or apparel product is the single country, territory, or insular possession in which the good was wholly obtained or produced.” As the subject merchandise is not wholly obtained or produced in a single country, territory or insular possession, paragraph (c)(1) of Section 102.21 is inapplicable. Paragraph (c)(2) states, “Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1) of this section, the country of origin of the good is the single country, territory, or insular possession in which each of the foreign materials incorporated in that good underwent an applicable change in tariff classification, and/or met any other requirement, specified for the good in paragraph (e) of this section:” Paragraph (e) in pertinent part states, The following rules shall apply for purposes of determining the country of origin of a textile or apparel product under paragraph (c)(2) of this section:
HTSUS Tariff shift and/or other requirements
6101–6117 (1) If the good is not knit to shape and consists of two or more component parts, except for goods of subheading 6117.10 provided for in paragraph (e)(2) of this section, a change to an assembled good of heading 6101 through 6117 from unassembled components, provided that the change is the result of the good being wholly assembled in a single country, territory, or insular possession.
(2) If the good is not knit to shape and does not consist of two or more component parts, except for goods of subheading 6117.10 provided for in paragraph (e)(2) of this section, a change to heading 6101 through 6117 from any heading outside that group, except from heading 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408, 5512 through 5516, 5806, 5809 through 5811, 5903, 5906 through 5907, and 6001 through 6006, and subheading 6307.90, and provided that the change is the result of a fabric-making process.
(3) If the good is knit to shape, except for goods of subheading 6117.10 provided for in paragraph (e)(2) of this section, a change to 6101 through 6117 from any heading outside that group, provided that the knit to shape components are knit in a single country, territory, or insular possession.
6210–6212 (1) If the good consists of two or more component parts, a change to an assembled good of heading 6210 through 6212 from unassembled components, provided that the change is the result of the good being wholly assembled in a single country, territory, or insular possession
All styles meet the requirements of 19CFR 102.21(c)(2). The country of origin of all styles is Mexico.
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 NAFTA contact Rosemarie Hayward at (646) 733-3064; for questions regarding classification contact National Import Specialist 354 at (646) 733-3054.
Should you wish to request an administrative review of this ruling, submit a copy of this ruling and all relevant facts and arguments within 30 days of the date of this letter, to the Director, Commercial Rulings Division, Headquarters, U.S. Customs and Border Protection, Regulations & Rulings, 799 9th Street N.W. - 7th floor, Washington, DC 20229-1177.
Sincerely,
Thomas J. Russo
Director
National Commodity Specialist Division