CLA-2-61:OT:RR:NC:N3:356
Ms. Aneta Skromak
Theory LLC
165 Polito Avenue
Lyndhurst, NJ 07071
RE: The tariff classification and status under the United States-Morocco Free Trade Agreement (UMFTA) of a men’s pullover from Morocco
Dear Ms. Skromak:
In your letter dated June 21, 2022, you requested a ruling on the tariff classification and status under the UMFTA of a men’s pullover. As requested, your sample will be returned.
Style M074505O is a men’s cut and sewn pullover constructed from 100 percent cotton knit fabric that is lightly napped on the inside surface. The fabric measures 21 stitches per 2 centimeters in the direction the stitches are formed. Style M074505O features long, raglan sleeves with rib knit cuffs, a contrasting fabric insert at the front neckline, piping at the raglan seams, a self-fabric kangaroo pocket at the waist, a self-fabric hood with a draw cord, contrasting fabric neck tape at the inner rear neckline, and a rib knit bottom band.
The applicable subheading for Style M074505O will be 6110.20.2069, Harmonized Tariff Schedule of the United States (HTSUS), which provides for: Sweaters, pullovers, sweatshirts, waistcoats (vests) and similar articles, knitted or crocheted: Of cotton: Other: Other: Other: Men’s or boys’: Other. The rate of duty will be 16.5 percent ad valorem.
Your inquiry also concerns the eligibility under the UMFTA of Style M074505O under the following three scenarios:
Scenario 1:
For the main body of the garment, cotton fibers of unknown origin are spun into yarns in Turkey and exported to Portugal. In Portugal, the yarns are knit into fabric, and the fabric is exported to Morocco.
The rib knit fabric of the cuffs and bottom of the garment is produced in Portugal and exported to Morocco.
The draw cord, neckline insert, piping, and neck tape are produced outside of the United States and Morocco and exported to Morocco.
In Morocco, the fabrics of the garment are cut, and the garment undergoes sewing and assembly operations.
The finished garment is exported from Morocco directly to the United States.
Scenario 2:
For the main body of the garment, cotton fibers of unknown origin are spun into yarns in Turkey and exported to Morocco. In Morocco, the yarns are knit into fabric.
The rib knit fabric of the cuffs and bottom of the garment is produced in Portugal and exported to Morocco.
The draw cord, neckline insert, piping, and neck tape are produced outside of the United States and Morocco and exported to Morocco.
In Morocco, the fabrics of the garment are cut, and the garment undergoes sewing and assembly operations.
The finished garment is exported from Morocco directly to the United States.
Scenario 3:
For the main body of the garment, cotton fibers of unknown origin are spun into yarns and knit into fabric in Morocco.
The rib knit fabric of the cuffs and bottom of the garment is produced in Portugal and exported to Morocco.
The draw cord, neckline insert, piping, and neck tape are produced outside of the United States and Morocco and exported to Morocco.
In Morocco, the fabrics of the garment are cut, and the garment undergoes sewing and assembly operations.
The finished garment is exported from Morocco directly to the United States.
General Note (GN) 27, HTSUS, sets forth the criteria for determining whether a good is originating under the UMFTA. GN 27(b), HTSUS (19 U.S.C. § 1202) states: For the purposes of this note, subject to the provisions of subdivisions (c), (d), (e), (g) and and (h) thereof, a good imported into 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 the growth, product or manufacture of Morocco or of the United States, or both;
(ii) the good is a new or different article of commerce that has been grown, produced or manufactured in the territory of Morocco or of the United States, or both, and that falls in a heading or subheading of the tariff schedule that is not covered by the product-specific rules of subdivision (h) of this note; and the sum of –
(A) the value of each material produced in the territory of Morocco or of the United States, or both; and
(B) the direct costs of processing operations performed in the territory of Morocco or the United States, or both, is not less than 35 percent of the appraised value of the good at the time the good is entered into the territory of the United States; or
(iii) the good falls in a heading or subheading covered by a product-specific rule in subdivision (h) of this note and –
(A)(1) each of the nonoriginating materials used in the production of the good undergoes an applicable change in tariff classification specified in subdivision (h) of this note; or
(2) the good otherwise satisfies the requirements specified in subdivision (h) of this note; and
(B) the good meets any other requirements specified in this note;
and is imported directly into the territory of the United States from the territory of Morocco.
Style M074505O is subject to the product-specific rule set out in GN 27(h)/61.35, which requires:
A change to headings 6109 through 6111 from any other chapter, except from headings 5106 through 5113, 5204 through 5212, 5307 through 5308 or 5310 through 5311, chapter 54 or headings 5508 through 5516 or 6001 through 6006, provided that the good is cut or knit to shape, or both, and sewn or otherwise assembled in the territory of Morocco and/or the United States.
In addition to the tariff shift rule set out in GN 27(h)/61.35, Style M074505O is also subject to Chapter 61, chapter rule 2. This rule states, in pertinent part:
For purposes of determining the origin of a good of chapter 61 of the tariff schedule, 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 M074505O is the cotton comprising the main body of the garment. Therefore, this is the only component that must satisfy the specific rule of origin set out in GN 27(h)/61.35.
Our findings are as follows:
Scenario 1: The cotton fabric of the body of the garment is knit outside the UMFTA territory. This fabric is classifiable within headings 6001 through 6006 of the HTSUS. Since 6001 through 6006 is an excepted range within the specific rule of origin set out in GN 27(h)/61.35, this rule is not satisfied. Accordingly, a garment produced as described in this scenario fails to qualify for preferential tariff treatment under the UMFTA, because it fails to meet the requirements of GN 27(b)(iii). The garment will not be entitled to a free rate of duty under the UMFTA.
Scenario 2: The cotton fabric of the body of the garment is knit in Morocco from yarns spun outside the UMFTA territory. These yarns are classifiable within headings 5204 through 5212 of the HTSUS. Since 5204 through 5212 is an excepted range within the specific rule of origin set out in GN 27(h)/61.35, this rule is not satisfied. Accordingly, a garment produced as described in this scenario fails to qualify for preferential tariff treatment under the UMFTA, because it fails to meet the requirements of GN 27(b)(iii). The garment will not be entitled to a free rate of duty under the UMFTA.
Scenario 3: The cotton fabric of the body of the garment is knit in Morocco from yarns spun in Morocco from non-originating cotton fibers. These fibers are classifiable in either heading 5201 or 5203 of the HTSUS. Since neither of these headings is an excepted heading in the the specific rule of origin set out in GN 27(h)/61.35, the rule is satisfied. Accordingly, a garment produced as described in this scenario qualifies for preferential tariff treatment under the UMFTA, because it meets the requirements of GN 27(b)(iii). The garment will be entitled to a free rate of duty.
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 maryalice.nowak.cbp.dhs.gov.
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division