CLA-2-64:OT:RR:NC:N4:447
Mr. Reynaldo Vasquez
ADI Footwear
Calle El Mirador, No. 5546, Colonia Escalón,
San Salvador, El Salvador
RE: The tariff classification of footwear produced in El Salvador and the eligibility for preferential treatment under the Dominican Republic – Central America Free Trade Agreement (DR-CAFTA).
Dear Mr. Vasquez: In your letters dated May 21, 2013 and August 19, 2013 you requested a tariff classification ruling on behalf of ADI Footwear for a women’s sandal assembled in El Salvador from non-originating materials. You state that this sandal will be manufactured exactly the same for men and children as well. Your request concerns the eligibility for preferential duty treatment for the footwear under the Dominican Republic-Central America-United States Free Trade Agreement (U.S./DR-CAFTA).
You describe the sandal as follows:
Style “Terra Fi Lite” is a men’s and children’s sandal with an EVA rubber or plastics sole/outer sole and a three strap textile material upper with hook and loop closures. You state that the upper and sole components are produced in countries other than El Salvador (or other CAFTA countries) and assembled in El Salvador. The Manufacturer Certificate of Origin Affidavits provided by you for the non-originating materials suggest that at the time of importation into El Salvador, these materials would be classified under various subheadings of the Harmonized Tariff Schedule of the United States (HTSUS). You also provided a Manufacturer’s Certificate of Origin Affidavit from the factory in El Salvador stating that the sandal “is produced entirely in the territory of one or more of the CAFTA-DR Parties and each of the non-originating materials used in the production of the good undergoes an applicable change in tariff classification.”
The applicable subheading for the men’s sandal identified as style “Terra Fi Lite” will be 6404.19.3940, HTSUS, which provides for footwear with outer soles of rubber, plastics, leather or composition leather and uppers of textile materials: footwear with outer soles of rubber or plastics: other: footwear with open toes or open heels; footwear that is not less than 10 percent by weight of rubber or plastics: other: other: for men. The general rate of duty will be 37.5% ad valorem.
The applicable subheading for the children’s sandal identified as style “Terra Fi Lite” will be 6404.19.3980, HTSUS, which provides for footwear with outer soles of rubber, plastics, leather or composition leather and uppers of textile materials: footwear with outer soles of rubber or plastics: other: footwear with open toes or open heels; footwear that is not less than 10 percent by weight of rubber or plastics: other: other: other. The general rate of duty will be 37.5% ad valorem.
General Note 29, HTSUS, sets forth the criteria for determining whether a good is originating under the U.S./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 non-originating materials used in the production of the good undergoes an applicable change in tariff classification specified in subdivision (n) of this note; …
Based on the facts provided, the sandal (manufactured for men and children) described above qualifies for U.S./DR-CAFTA preferential treatment because it will meet the requirements of HTSUS General Note 29(b)(ii)(A) and 29(n) Chapter 64, Chapter Rule 1(2), which states “a change to any other tariff item of Chapter 64 from any other subheading.” The sandal will therefore be entitled to a free rate of duty under the U.S./DR-CAFTA upon compliance with all applicable laws, regulations, and agreements.
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/.
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, Stacey Kalkines at 646-733-3042. Sincerely,
Gwenn Klein-Kirschner
Acting Director
National Commodity Specialist Division