CLA-2-62:OT:RR:NC:N3:358
Mr. Dennys Chiquillo
Alennys LLC
6312 Mount Logan Way
Salt Lake City, UT 84129
RE: The tariff classification and status under the Dominican Republic-Central America Free Trade Agreement (DR-CAFTA) of a toddlers’ dress from El Salvador.
Dear Mr. Chiquillo:
In your letter dated April 22, 2021, you requested a ruling on the tariff classification and status under the Dominican Republic-Central America Free Trade Agreement (DR-CAFTA) of a toddlers’ dress on behalf of Alennys LLC. The sample was destroyed during analysis by the CBP laboratory and will not be returned.
The submitted sample is a toddler’s dress, size 24M, constructed of 100 percent cotton woven fabric. The sleeveless dress features an A-line silhouette, a round neckline with ruffle fabric at the hem, a back opening with two button closures and a hemmed bottom. On email correspondence you state the dress will be imported in babies sizes 0-24M, toddler sizes 2T-4T and girls sizes 4-6X.
The applicable subheading for the dress in babies’ sizes will be 6209.20.1000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Babies’ garments and clothing accessories: Of cotton: Dresses.” The rate of duty will be 11.8 percent ad valorem.
The applicable subheading for the dress in toddlers and girls’ sizes will be 6204.42.3040, (HTSUS), which provides for women’s or girls’ suits, ensembles, suit-type jackets, blazers, dresses, skirts, divided skirts, trousers, bib and brace overalls, breeches and shorts (other than swimwear): dresses: of cotton: other: other, other, other: with two or more colors in the warp and/or the filling: girls’. The rate of duty will be 8.4 percent ad valorem.
In support of your request, you provided a fabric data sheet stating the dress is cut, sewn and assembled into the finished garment in El Salvador. The sewing thread and buttons are sourced from El Salvador and Guatemala respectively, and the cotton woven fabric is manufactured in China. The dress will be exported directly from El Salvador into the U.S.
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, in pertinent part,
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.
Since the garments contain non-originating materials, they are required to undergo an applicable change in tariff classification to meet the requirements of GN 29(b)(ii)(A).
GN 29(n), Chapter 62, Chapter rule 2 states in pertinent part:
For purposes of determining whether a good of this chapter is originating, 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.
For the babies’ dress classified in subheading 6209.20.10, GN 29(n) 62.35 requires:
A change to tariff item 6209.20.10 from any other chapter, provided that the good is cut or knit to shape, or both, and sewn or otherwise assembled in the territory of one or more of the parties to the Agreement.
For the toddlers and girls’ dress classified in subheading 6204.42, GN 29(n) 62.24 requires:
A change to goods for girls, other than of corduroy, of tariff item 6204.42.30 or to goods for girls of tariff items 6204.43.40 or 6204.44.40 from any other chapter, provided that the good is cut or knit to shape, or both, and sewn or otherwise assembled in the territory of one or more of the parties to the Agreement.
The component that determines the classification for the the babies, toddlers, and girls’ dress is the 100% woven cotton fabric. You state the cotton fabric is made in China.
Based on the facts provided, the dress imported in babies, toddlers, and girls’ sizes will qualify for DR-CAFTA preferential treatment because they meet the requirements of HTSUS GN 29(b)(ii)(A). The garments are entitled to a free rate of duty under the DR CAFTA upon compliance with all applicable laws, regulations, and agreements.
In your letter, you indicate the dresses are currently being manufactured in El Salvador, and you inquire whether the fabric used in the production of the dress will qualify under the Office of Textiles and Apparel’s (OTEXA) short supply number 11 of Annex 3.25 to DR-CAFTA. Please note, the dress imported in babies, toddlers, and girls’ sizes meet the tariff shift requirements of GN 29(b)(ii)(A) regardless of whether the fabric meets short supply number 11 of Annex 3.25 to DR-CAFTA.
Per your request, we have determined the following with regard to the applicability of the dress’s qualification under the OTEXA short supply number 11, Annex 3.25, to DR-CAFTA.
Chapter 98, Sub-chapter XXII, U.S. Note 20(a) states:
Heading 9822.05.01 shall apply to textile or apparel goods of chapters 50 through 63 and subheading 9404.90 that contain any of the fabrics, yarns or fibers set forth herein, are described in general note 29 to the tariff schedule and otherwise meet
the requirements of such general note 29:
(11) Fabrics classified in subheading 5208.42 or 5208.49, not of square construction, containing more than 85 warp ends and filling picks per square centimeters, of average yarn number exceeding 85 metric.
Chapter 98, Sub-chapter XXII, U.S. Note 20(b) states:
The United States Trade Representative may modify the enumeration of designated fabrics, yarns and fibers set forth in subdivision (a) of this note to reflect CITA determinations described in subdivision (a) of this note, in a notice published in the Federal Register. Based on the facts provided, the dress imported in babies, toddlers, and girls’ sizes may qualify for DR-CAFTA preferential treatment because the garment fabric meets the requirements of HTSUS General Note 29(m)(viii)(B)(1).
In your letter you also state you plan to manufacture boys’ garments in addition to the dresses. Please be aware that this letter only applies to the dress submitted for review and does not extend to the manufacture of other garments. If you have additional questions regarding the classification and DR-CAFTA applicability of different garment styles, you should submit additional ruling requests for those styles.
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 Katherine Souffront at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division