CLA-2-61:OT:RR:NC:N3:356
Ms. Hyomi Kwon
Hecny Brokerage Service, Inc.
147-39 175th Street, #211
Jamaica, NY 11434
RE: The tariff classification, country of origin, and status under the Haiti Hemispheric Opportunity through Partnership Encouragement Act of 2008 (HOPE II) of men’s T-shirts from Haiti
Dear Ms. Kwon:
In your letter dated June 8, 2017, and in subsequent undated correspondence received in our office on July 7, 2017, you requested a ruling on the classification, country of origin, and eligibility under HOPE II of a men’s knit garment on behalf of your client, GMPC, LLC. Your sample will be returned.
FACTS:
Style MARM-THREAD is a men’s T-shirt constructed from 50% cotton, 50% polyester, finely knit jersey fabric. The garment features a rib knit crew neckline, short, hemmed sleeves, and a straight, hemmed bottom.
Because Style MARM-THREAD is to be constructed from a 50/50 blend of fibers, it is classifiable pursuant to the Harmonized Tariff Schedule of the United States (HTSUS), Section XI, Note 2(A) and Subheading Note 2(A). The garment will be classified as if it consisted wholly of that one textile material which is covered by the heading which occurs last in numerical order among those which equally merit consideration. Even a slight change in the fiber content of this garment may result in a change of classification. The garment may be subject to Customs and Border Protection laboratory analysis at the time of importation and, if the fabric is other than a 50/50 blend, it may be reclassified by Customs at that time.
The manufacturing operations for Style MARM-THREAD are as follows:
Cotton fibers and polyester staple fibers are spun into yarns in the United States and exported to Mexico.
In Mexico, the yarns are knit into fabrics, and the fabrics are exported to Haiti.
In Haiti, the fabrics are cut into component parts (front panel, rear panel, sleeves, and neckline), sewn, and assembled into the finished garment.
The garments are exported from Haiti directly to the United States.
ISSUE:
What are the classification, country of origin, and status under HOPE II of the subject merchandise?
CLASSIFICATION:
The applicable subheading for Style MARM-THREAD will be 6109.90.1007, 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 rate of duty will be 32% ad valorem.
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) states, in pertinent part:
The following rules will 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… 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.
Style MARM-THREAD is assembled in a single country, that is, Haiti. Therefore, in accordance with the tariff shift rule noted above, country of origin is conferred in Haiti, the country in which the component parts were assembled to form the finished garment.
HOPE II – LAW AND ANALYSIS:
Based on the classification of Style MARM-THREAD and the manufacturing scenario described above, the applicable subheading to determine eligibility under HOPE II is 9820.61.35, HTSUS, which provides for:
Apparel articles of chapter 61 described in U.S. note 6(j) to this subchapter and imported directly from Haiti or the Dominican Republic during any 1-year period specified in U.S. Note 6(j)(iii) to this subchapter, subject to the limitations provided in such U.S. note 6(j)(iii).
Chapter 98, Subchapter XX, HTSUS, U.S.Note 6(j) states, in pertinent part: (i) The preferential treatment provided in heading 9820.61.35 shall be extended to any apparel article classifiable under Chapter 61 of the tariff schedule that is wholly assembled, or knit to shape, in Haiti from any combination of fabrics, fabric components, components knit-to-shape or yarns and is imported directly from Haiti or Dominican Republic, subject to subdivisions (j)(ii), (j)(iii) and (j)(iv) of this note, without regard to source of the fabric, fabric components, components knit-to-shape or yarns from which the article is made. (ii) The preferential treatment described in subdivision (j)(i) of this note shall not apply to the following: …
(B) T-shirts for men or boys that are classifiable under subheading 6109.90.10…
Because Style MARM-THREAD is a men’s T-shirt classified under subheading 6109.90.10, it is excluded by chapter 98, Subchapter XX , U.S. Note 6(j)(ii)(B). Therefore, Style MARM-THREAD is not eligible for preferential duty treatment under HOPE II.
In addition, we note that a label on the submitted sample contains the following fiber content marking: “50% RPT/50% cotton.” Textile fiber products imported into the United States 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. We suggest you contact the Federal Trade Commission, 600 Pennsylvania Avenue, N.W., Washington, D.C. 20580 for information concerning the requirements of this Act. Information may also be obtained at the Federal Trade Commission website, 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