CLA-2-61:OT:RR:NC:N3:361
Mr. Benjamin Ramirez
International Automated Brokers, Inc.
1655 St Andrew Cove
San Diego, CA 92154
RE: The tariff classification of women’s and girls’ knit garments from China, and Egypt and
eligibility under subheading 9802.00.50, HTSUS, for women’s knit garments
Dear Mr. Ramirez:
In your letter dated February 7, 2020, you requested a classification and eligibility under subheading 9802.00.50, Harmonized Tariff Schedule of the United States (HTSUS), for certain women’s knit garments imported into the United States, on behalf of your client, Jerry Leigh. Your samples will be returned to you, as requested.
Style JT23148 is a women’s garment similar to a T-shirt constructed from 52 percent polyester, 48 percent cotton, jersey knit fabric. The garment features a crew neckline, taping over the inside rear neck and shoulder seams, a large silk-screen print design, short hemmed sleeves, and a straight un-hemmed bottom. You also state that this garment will be imported in a blank design (no silk-screen design). You state the garment will be produced in Egypt.
Style ST20967 is a girl’s garment similar to a T-shirt. In your letter you indicate that the garment is constructed of 60 percent cotton, 40 percent polyester, jersey knit fabric. The garment features a crew neckline, taping over the inside rear neck and shoulder seams, a silk-screen print design, short hemmed sleeves, and a straight hemmed bottom. You also state that this garment will be imported in a blank design (no silk-screen design). You state the garment will be produced in Egypt.
Style JT17028 (blank) is a women’s garment similar to a T-shirt constructed from 65 percent polyester, 35 percent rayon knit jersey fabric. The garment features a crew neckline, short hemmed sleeves, and a curved, hemmed bottom with a slightly longer back panel. You state the garment will be produced in China. Style JT17028 finished garment will be imported into the United States and then exported to Mexico for screen-printing operations. After the operations are performed in Mexico, the garments will be returned to the United States for sale and distribution.
Style JT22799 (blank) is a women’s garment similar to a T-shirt constructed from 65 percent polyester, 35 percent rayon jersey knit fabric. The garment features a crew neckline, short hemmed sleeves, and a curved, hemmed bottom with a slightly longer back panel. You state the garment will be produced in China. Style JT22799 finished garment will be imported into the United States and then exported to Mexico for screen-printing operations. After the operations are performed in Mexico, the garments will be returned to the United States for sale and distribution.
The applicable subheading for style JT23148 (blank and silk-screen printed), style JT17028 (blank), style JT22799 (blank), will be 6109.90.1090, HTSUS, which provides for T-shirts, singlets, tank tops and similar garments, knitted or crocheted: Of other textile materials: Of man-made fibers: Women’s or girls’: Other. The rate of duty will be 32% ad valorem.
The applicable subheading for style ST20967 (blank and silk-screen printed), will be 6109.10.0045, HTSUS, which provides for women’s or girls’ T-shirts, singlets, tank tops and similar garments, knitted or crocheted, of cotton, women’s or girls, other, T-shirts, girl’s. The rate of duty will be 16.5% ad valorem.
Subheading 9802.00.50, HTSUS, provides a partial or complete duty exemption for articles exported from and returned to the United States after having been advanced in value or improved in condition by repairs or alterations, provided that the documentary requirements of Section 181.64, Customs Regulations (19 C.F.R. § 181.64), are satisfied.
19 C.F.R. § 181.64 (a) states that “repairs or alterations” means restoration, addition, renovation, redyeing, cleaning, resterilizing, or other treatment which does not destroy the essential characteristics of, or create a new and commercially different good from, the good exported from the United States. However, entitlement to this tariff treatment is precluded in circumstances where the operations performed abroad destroy the identity of the exported articles or create new or commercially different articles through a process of manufacture.
Subheading 9802.00.50, HTSUS, treatment is also precluded where the exported articles are incomplete for their intended use and the foreign processing operation is a necessary step in the preparation or manufacture of finished articles. Furthermore, the merchandise must be in compliance with the pertinent legal notes of the HTSUS. For example, Section XXII, Chapter 98, Subchapter II, U.S. Note 1(b) states that heading 9802 HTSUS shall not apply to any article exported with benefit of drawback (other than NAFTA drawback).
In this instance, the garments are complete for their intended use prior to being exported to Mexico to undergo the stated operations. As exported from the United States, the garments are finished products in that they are suitable for use as wearing apparel. Although the operations performed in Mexico alter the appearance of the garments, such operations do not otherwise enhance the character of the garments. They are shipped to Mexico solely for printing before being returned to the United States.
The merchandise in its condition as exported from the United States and as returned from Mexico can be marketed and sold to consumers for the same use. The operations performed in Mexico do not result in the loss of the good’s identity nor create a new article with a different commercial use. Therefore, the operations performed in Mexico constitute acceptable repairs and alterations within the meaning of subheading 9802.00.50, HTSUS. Style’s JT17028 and JT22799 will qualify for the special tariff treatment of that provision, when returned from Mexico provided that the documentary requirements of 19 C.F.R. § 181.64 are met.
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 Antoinette Peek-Williams at [email protected].
Sincerely,
Steven Mack
Director
National Commodity Specialist Division