CLA-2-61:OT:RR:NC:N3:356
Mr. Brian Kavanaugh
Deringer Logistics Consulting Group
A.N. Deringer, Inc.
173 West Service Road
Champlain, NY 12919
RE: The tariff classification, status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA), and country of origin marking of a men’s T-shirt from Honduras
Dear Mr. Kavanaugh:
In your letter dated January 23, 2017, on behalf of your client, Vision Eleven Apparel Management, you requested a ruling on the tariff classification, eligibility under the DR-CAFTA, and country of origin marking of a men’s T-shirt. Your sample will be returned.
Style T1079DDC is a men’s T-shirt constructed of 50% cotton, 50% polyester, finely knit jersey fabric that measures 30 stitches per 2 centimeters counted in the horizontal direction. The garment features a rib knit crew neckline; short, hemmed sleeves; a large graphic design on the front panel; and a straight, hemmed bottom.
The applicable subheading for Style T1079DDC 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 duty rate will be 32% ad valorem.
The manufacturing operations for Style T1079DDC are as follows:
Cotton fibers and polyester staple fibers, both of which originate in the U.S., are spun into cotton/polyester yarn in the United States and exported to Honduras.
In Honduras, the yarn is knit into fabric, and the thread used to sew the garments is formed and finished.
The fabric is cut, sewn, and assembled into the finished garments in Honduras.
The garments are exported directly from Honduras to the United States.
The garments are subsequently exported to Canada for screen printing, and are re-imported into the United States.
General Note (GN) 29, HTSUS, sets forth the criteria for determining whether a good is originating under the DR-CAFTA. GN 29(b), HTSUS (19 U.S.C. § 1202) states: 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; 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, the garments, upon their initial importation from Honduras into the United States, qualify for DR-CAFTA preferential treatment, because they meet the requirements of HTSUS General Note 29(b)(iii). They will be entitled to a free rate of duty under the DR-CAFTA.
Your request also concerns the country of origin marking of Style T1079DDC with the words “Designed in Canada/Made in Honduras With USA Yarns.” The submitted sample features the words “Designed in Canada,” which are permanently stamped on the inside of the garment two inches below the center rear neckline, in letters measuring approximately 1/8 inch in height. Immediately beneath this line, and in identical size lettering, are the words “Made in Honduras with USA Yarns.” Farther down the inside rear of the garment, in slightly smaller lettering, are the words “Made in/Fabrique au Honduras.”
Section 304 of the Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that unless excepted, every article of foreign origin imported into the U.S. shall be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article (or its container) will permit, in such a manner as to indicate to the ultimate purchaser in the U.S. the English name of the country of origin of the article. Congressional intent in enacting 19 U.S.C. 1304 was "that the ultimate purchaser should be able to know by an inspection of the marking on the imported goods the country of which the goods is the product. The evident purpose is to mark the goods so that at the time of purchase the ultimate purchaser may, by knowing where the goods were produced, be able to buy or refuse to buy them, if such marking should influence his will." United States v. Friedlander & Co., 27 C.C.P.A. 297 at 302; C.A.D. 104 (1940). Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. 19 CFR 134.47 provides that when, as part of a trademark or trade name or as part of souvenir marking, the name of a location in the United States or “United States” or “American” appear, the article shall be legibly, conspicuously, and permanently marked to undicate the name of the country of origin of the article preceded by “Made in,” “Product of,” or other similar words, in close proximity or in some other conspicuous location.
The graphic design on the front panel of Style T1079DDC includes references to the U.S. localities of “NYC” and “Manhattan,” as well as the partial image of an American flag, each of which is part of the souvenir marking of the garment. Therefore, the garment must be marked in accordance with 19 CFR 134.47. We find that the marking of Style T1079DDC in the neckline with the words “Designed in Canada/Made in Honduras” satisfies the requirements of 19 CFR 134.47.
With respect to the use of the words “USA Yarns,” the labelling of yarn in an article of apparel may be considered fiber content labelling. Textile fiber products imported into the U.S. must be labeled in accordance with the Textile Fiber Products Identification Act (15 U.S.C. 70 through 70k) and the rules promulgated thereunder by the Federal Trade Commission (FTC). Fiber content labelling is covered under the Textile Fiber Products Identification Act; CBP does not issue rulings interpreting FTC guidelines. Therefore, we suggest that you contact the Federal Trade Commission regarding the issue of whether the proposed marking of the imported garments satisfies such requirements. The address and website of the FTC follow: Federal Trade Commission, 600 Pennsylvania Avenue, N.W., Washington, D.C., 20580 and www.ftc.gov.
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 the 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 ruling, contact National Import Specialist Maryalice Nowak at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division