CLA-2-61:OT:RR:NC:N3:356
Ms. Stacee Osaki-Nishibata
Tori Richard, Ltd.
1891 North King Street
Honolulu, HI 96819
RE: The tariff classification and status under the United States-Korea Free Trade Agreement (UKFTA) of a men’s pullover from Korea
Dear Ms. Osaki-Nishibata:
In your letter dated October 29, 2021, you requested a ruling on the tariff classification and status under the UKFTA of a men’s pullover from Korea. Your sample will be retained in our office.
Style 0274 is a men’s pullover. The submitted sample is constructed from 69% rayon and 31% polyester knit fabric, but you state that as imported, the garment will be constructed of 88% nylon and 12% spandex knit fabric. You provided a swatch of the fabric from which the garment will be constructed; it is a finely knit fabric that measures 24 stitches per two centimeters in the direction the stitches are formed. Style 0274 features a self-fabric crew neckline, long, hemmed sleeves, and a straight, hemmed bottom.
The applicable subheading for Style 0274 will be 6110.30.3053, Harmonized Tariff Schedule of the United States (HTSUS), which provides for: Sweaters, pullovers, sweatshirts, waistcoats (vests) and similar articles, knitted or crocheted: Of man-made fibers: Other: Other: Other: Other: Other: Men’s or boys’: Other. The rate of duty will be 32% ad valorem.
The manufacturing operations for Style 0274 are as follows:
Nylon filament fibers are extruded and twisted into yarns in China. Spandex filament fibers are also extruded and twisted into yarns in China.
In China, the nylon and spandex yarns are knitted into fabric, which is exported to South Korea.
In South Korea, the fabric is cut, sewn, and assembled into the finished garments using threads produced in China.
The finished garments are exported directly from South Korea to the United States.
General Note (GN) 33, HTSUS, sets forth the criteria for determining whether a good is originating under the UKFTA. GN 33(b), HTSUS, states:
For the purposes of this note, subject to the provisions of subdivisions (c), (d), (n) and (o) thereof, a good imported into the customs territory of the United States is eligible for treatment as an originating good of a UKFTA country under the terms of this note if— (i) the good is wholly obtained or produced entirely in the territory of Korea or of the United States, or both; (ii) the good is produced entirely in the territory of Korea or of the United States, or both, and— (A) each of the nonoriginating materials used in the production of the good undergoes an applicable change in tariff classification specified in subdivision (o) of this note; or (B) the good otherwise satisfies any applicable regional value-content or other requirements set forth in such subdivision (o); and
satisfies all other applicable requirements of this note and of applicable regulations; or (iii) the good is produced entirely in the territory of Korea or of the United States, or both, exclusively from materials described in subdivisions (i) or (ii), above. For the purposes of this note, the term “UKFTA country” refers only to Korea or to the United States.
Since Style 0274 contains non-originating materials, it must satisfy the tariff shift rule, found in GN 33(o), that applies to its tariff classification. This rule, set out in GN 33(o)/61.33, requires:
A change to heading 6109 through 6111 from any other chapter, except from headings 5106 through 5113, 5204 through 5212, 5307 through 5308, 5310 through 5311, subheadings 5403.33 through 5403.39 or 5403.42 through heading 5408 or headings 5508 through 5516 or 6001 through 6006, provided that the good is both cut (or knit to shape) and sewn or otherwise assembled in the territory of Korea or the United States, or both.
In addition to the tariff shift rule noted above, Style 0274 must meet any applicable chapter rules found in GN 33(o), Chapter 61. Chapter 61, chapter rule 2 applies to the subject good. This rule states, in relevant 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.
The component that determines the tariff classification of Style 0274 is the nylon/spandex knit fabric. Accordingly, this is the only component that must satisfy the rule of origin set out in GN 33(o)/61.33. The Chinese nylon/spandex fabric used to produce Style 0274 is classifiable within the tariff range of headings 6001 through 6006, which is one of the exclusions listed in GN 33(o)/61.33. Therefore, this rule of origin is not satisfied.
Accordingly, based on the facts provided, Style 0274 fails to qualify for UKFTA preferential treatment, because it does not meet the requirements of GN 33(b)(ii)(A), HTSUS. The merchandise will not be entitled to a free rate of duty under the UKFTA.
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