CLA-2-64:OT:RR:NC:N3:447
Ms. Sandra Tovar
CST, Inc.
500 Lanier Ave., W. Suite 901
Fayetteville, GA 30214
RE: The tariff classification of footwear produced in the Dominican Republic and the eligibility for preferential treatment under the Dominican Republic – Central America – United States Free Trade Agreement (DR-CAFTA).
Dear Ms. Tovar.
In your letter dated November 17, 2016, you requested a tariff classification ruling on behalf of your client Ningbo Ningshing Co., Ltd. The submitted samples are identified as style names FS1, LB1, Lacrosse, Sperry and Kid Boot. Your request concerns the eligibility for preferential duty treatment of various boots under the DR-CAFTA.
The submitted style LB1 is a woman’s, closed toe/closed heel, above-the-ankle, below-the-knee, slip-on boot measuring approximately 14 ½ inches in height. It has an outer sole and upper of non-pvc rubber/plastics laminated on the inside with cotton material. The boot features a decorative buckle near the top of the shaft on the lateral side. It does not incorporate a metal toe-cap.
Style Lacrosse is a man’s closed toe/closed heel, above-the-ankle, below-the-knee, boot with an outer sole and upper of non-pvc rubber/plastics. The boot measures approximately 14 ½ inches in height, is lined with 3M Thinsulate™, decorated with a camouflage print, and features a nylon strap at the back. It does not incorporate a metal toe-cap. The outer sole is attached to the upper by adhesive.
Style Kid Boot is a children’s closed toe/closed heel, above-the-ankle, below-the-knee, slip-on, waterproof boot with an outer sole and upper of non-pvc rubber/plastics. The boot measures approximately 6 inches in height, does not incorporate a metal toe-cap, and is lined with cotton.
The applicable subheading for styles LB1, Lacrosse, and Kid Boot will be 6401.92.9060, Harmonized Tariff Schedule of the United States, (HTSUS), which provides for waterproof footwear with outer soles and uppers of rubber or plastics, the uppers of which are neither fixed to the sole nor assembled by stitching, riveting, nailing, screwing, plugging or similar processes: other footwear: covering the ankle but not covering the knee: other: other: other. The rate of duty will be 37.5 percent ad valorem.
Style Sperry is a ladies’ boot comprised of a rubber/plastics boot bottom and a stitched-on cowhide leather shaft. The boot is secured with a zippered side and leather laces. The boot is considered protective against water. Physical examination of the sample, in the absence of an external surface area material breakdown, finds the majority of the external surface area occupied by the rubber/plastics.
You suggest classification under subheading 6403.92.9045 HTSUS, the provision for footwear having leather uppers. As the constituent material of the upper of this style is rubber/plastics, it will be classified elsewhere.
The applicable subheading for style Sperry will be 6402.91.5050, Harmonized Tariff Schedule of the United States (HTSUS), which provides for footwear, with outer soles and uppers of rubber or plastics; which is not “sports footwear;” which covers the ankle and does not have a protective metal toe-cap; not having uppers of which over 90 percent of the external surface area (including accessories or reinforcements) is rubber or plastics; which is designed to be worn over, or in lieu of, other footwear as a protection against water, oil, grease or chemicals or cold or inclement weather; for women: other. The rate of duty will be 37.5 percent ad valorem.
The submitted style FS1 is a man’s, closed toe/closed heel, above-the-ankle, below-the-knee, slip-on boot with glued on outer sole of rubber/plastics. The boot measures approximately 14 inches high. The neoprene upper, making up the majority of the external surface area, is nylon fabric. A molded rubber/plastics component covers the foot and ankle. The boot is considered “protective” against water.
The applicable subheading style FS1 will be 6404.19.2030, 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 designed to be worn over, or in lieu of, other footwear as a protection against water, oil, grease or chemicals or cold or inclement weather: for men. The rate of duty will be 37.5 percent ad valorem.
The manufacturing processes are common to all of the styles. The rubber component chemicals are imported from Mexico and manufactured into rubber/plastics outer soles in the Dominican Republic. In the Dominican Republic rubber chemicals are combined and passed through a calendaring machine, rolled and molded into sheets, and cut to shape for the upper components. The textile components originating from the United States are cut, laminated to the rubber/plastics, and for some styles made into linings, in the Dominican Republic. It is in the Dominican Republic the imported and originating materials are substantially transformed into finished footwear by mixing, molding, cutting, assembling, heating, pressing, trimming, and cleaning.
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 non-originating materials used in the production of the good undergoes an applicable change in tariff classification specified in subdivision (n) of this note; …
The non-originating materials must undergo an applicable change in tariff classification in order to meet the requirements of GN 29(b)(ii)(A).
General Note 29 (n), Chapter 64, Chapter rule 1 states:
Notwithstanding the tariff classification rules for goods of chapter 64 set forth below, with respect to goods of chapter 64 falling in the following tariff provisions enumerated in this rule for which a rate of duty followed by the symbol “P” in parentheses appears in the “Special” subcolumn rate of duty column 1, an importer may claim preferential tariff treatment under this note for a good of chapter 64 that meets any tariff classification rule for such good set forth in general note 12, 17, 25, 26 or 28 of the tariff schedule:
tariff items 6401.92.30, 6401.92.60, 6401.99.80, 6402.12.00 through 6402.30.30 inclusive, 6402.30.60, 6402.30.90, 6402.91.40, 6402.91.60, 6402.91.70, 6402.99.05 through 6402.99.18, inclusive, and 6402.99.30 through 6402.99.79, inclusive; heading 6403; tariff items 6404.11.20 through 6404.19.15, inclusive, and 6404.19.25 through 6404.20.60, inclusive; and headings 6405 and 6406.
Based on the facts provided, styles FS1, LB1, Lacrosse, Sperry, and Kid Boot qualify for preferential duty treatment. Each of the raw materials such as rubber/plastic chemicals sourced from Mexico and textile materials from the United States, and manufactured into completed boots in the Dominican Republic, undergoes a required tariff shift and will meet the requirements under the DR-CAFTA General Notes 29(b)(ii)(A). The boots will therefore be entitled to free rates of duty 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 https://hts.usitc.gov/current.
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 above, contact National Import Specialist Stacey Kalkines at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division