CLA-2-61:OT:RR:NC:N3:348
Mr. Bruce Schiller
Schiller Trade Systems Inc.
5290 Big Island Drive, Suite 1417
Jacksonville, FL 32246
RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of nightgowns from Mexico; Article 509
Dear Mr. Schiller:
In your letter dated April 22, 2019, on behalf of your client, New Holland Lingerie, Inc., you requested a classification ruling;
Style 37737 is a woman’s sleeveless nightgown. The back bodice is constructed of 80% nylon, 20% spandex knit fabric. The front bodice and small insert encircling the waist are constructed of 73% nylon, 27% spandex lace-like knit fabric. The remainder of the garment is constructed of 100% nylon knit fabric. The nightgown falls above the knee and features a V-neckline in the front, a scooped neckline in the back and a hemmed bottom.
Style 31737 is a woman’s sleeveless nightgown. The back bodice is constructed of 80% nylon, 20% spandex knit fabric. The front bodice and small insert encircling the waist are constructed of 73% nylon, 27% spandex lace-like knit fabric. The remainder of the garment is constructed of 100% nylon knit fabric. The nightgown falls below the knee and features a V-front neckline in the front, a scooped back neckline in the back and a hemmed bottom.
Style 71737 is a woman’s long sleeve robe. The top front portion, insert encircling the waist and cuffs are constructed from 73% nylon, 27% spandex lace-like knit fabric. The remainder of the garment is constructed of 100% nylon knit fabric. The robe falls below the knee and features long sleeves, a full frontal opening secured by 3 buttons at the waist and a hemmed bottom.
The applicable subheading for Styles 37737 and 31737 will be 6108.32.0010, Harmonized Tariff Schedule of the United States (HTSUS), which provides for women's knit nightdresses, of man-made fibers, women’s. The rate of duty will be 16% ad valorem.
The applicable subheading for Style 71737 will be 6108.92.0030, HTSUS, which provides for Women’s…bathrobes…and similar articles, knitted or crocheted: Of man-made fibers. The rate of duty will be 16% 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 the World Wide Web at https://hts.usitc.gov/current.
You stated in your letter the following manufacturing operation for each style:
The 100% nylon knit fabric and the 80% nylon 20% spandex knit fabric are of US origin.
The 73% nylon 27% spandex lace-like fabric is a non-originating material.
The sewing thread is of US origin.
Buttons and bows of unknown origin.
The fabrics are sent to Mexico to be cut, sewn and assembled into the garments.
The garments are exported to 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 nonoriginating 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, the goods would have to undergo an applicable change in tariff classification in order to meet the requirements of GN 12(b)(ii)(A).
General Note 12 (t), Chapter 61, Chapter rule 2 states in pertinent part:
For purposes of determining the origin of a good of this chapter, the rule applicable to that good shall only apply to the component that determines the tariff classification of the good and such component must satisfy the tariff change requirements set out in the rule for that good. The component that determines the classification for the nightgowns and the robe is the 100% knit fabric. Since the fabric is claimed to be originating, it does not need to meet the terms of the tariff shift. Based on the facts provided, all three styles qualify for NAFTA preferential treatment because it meets the requirements of HTSUS General Note 12(b)(ii)(A). The merchandise will therefore be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements.
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) in pertinent part states, The following rules shall 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, except for goods of subheading 6117.10 provided for in paragraph e(2)of this section, 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.
The garments are made of two or more component parts and are cut, sewn and assembled in Mexico. As all three styles meet the terms of the requirement of 19 C.F.R. 102.21, country of origin is conferred in Mexico.
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 Rosemarie Hayward via email at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division