CLA-2-61:OT:RR:NC:N3:356
Mr. Oscar H. Vildosola, LCB
OSVIL International, LLC
2105 N. Sulphur Springs Rd.
Douglas, AZ 85607
RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of a men’s T-shirt from Mexico; Article 509
Dear Mr. Vildosola:
In your letter, dated August 1, 2015, you requested a ruling on behalf of your client, Alstyle Apparel, on the status of men’s T-shirts, from Mexico under the NAFTA. The submitted samples, which include a T-shirt and a swatch of the fabric used to produce the shirts, will be retained in our files.
The shirt sample is a men’s T-shirt, Style #6301, constructed of 50% polyester, 25% rayon, and 25% cotton, finely knit jersey fabric that measures 30 stitches per 2 centimeters counted in the horizontal direction. It features a rib-knit crew neckline; short, hemmed sleeves; and a straight, hemmed bottom.
The applicable subheading for T-shirt Style #6301 will be 6109.90.1007, Harmonized Tariff Schedule of the United States (HTSUS), which provides for T-shirts, singlets, tank tops and similar garments, knitted or crocheted: of other textile materials: of man-made fibers; men’s or boys’: T-shirts: men’s. The general rate of duty will be 32% 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 the T-shirts are as follows:
The polyester staple fiber of Chinese origin, rayon staple fiber of Chinese origin, and cotton fiber of U.S. or Mexican origin will be spun into yarn in Mexico, and the yarn will be knitted into fabric in Mexico. In Mexico, the fabric will then be dyed, cut, sewn and assembled into T-shirts using sewing thread of U.S. origin. The finished T-shirts will be exported directly into 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 non-originating 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.
As the good contains non-originating materials, it would have to undergo an applicable change in tariff classification in order to meet the requirements of GN 12(b)(ii)(A).
For goods classified in heading 6109, General Note 12(t)/61.35 requires:
A change to heading 6109 through 6111 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.
Based on the facts provided, the goods described above qualify for NAFTA preferential treatment, because they will meet the requirements of HTSUS General Note 12(b)(ii)(A). The goods will therefore be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements.
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 ruling, contact National Import Specialist Maryalice Nowak at [email protected].
Sincerely,
Gwenn Klein Kirschner
Director
National Commodity Specialist Division