CLA-2-61:OT:RR:NC:N3:356

Lorra Jackson
SanMar
22833 SE Black Nugget Road, Suite 130
Issaquah, WA 98029

RE: The tariff classification and eligibility under the United States-Caribbean Basin Trade Partnership Act of 2000 (CBTPA) of men’s T-shirts from Haiti

Dear Ms. Jackson:

In your letter dated August 7, 2025, you requested a ruling on the tariff classification and eligibility under the CBTPA of men’s T-shirts from Haiti. Your sample will be retained in our office.

CLASSIFICATION:

Style PCTBD542025 is a men’s T-shirt constructed from lightweight, 100% cotton jersey knit fabric. The garment features a rib knit crew neckline; short, hemmed sleeves; and a straight, hemmed bottom. Style PCTBD542025 will be imported in sizes small - 6XL. Although each size is constructed from tubular knit fabric, you state that due to the larger dimensions of sizes 5XL and 6XL, the tubular fabric of the bodies of these sizes must first be cut open. Therefore, Sizes 5XL and 6XL will feature side seams.

The applicable subheading for Style PCTBD542025 will be 6109.10.0012, Harmonized Tariff Schedule of the United States (HTSUS), which provides for: T-shirts, singlets, tank tops and similar garments, knitted or crocheted: Of cotton: Men’s or boys’: Other T-shirts: Men’s. The general rate of duty will be 16.5 percent ad valorem.

CBTPA - MANUFACTURING OPERATIONS:

Your request also concerns the eligibility of Style PCTBD542025 under the CBPTA under the following manufacturing scenarios:

Scenario 1:

Cotton yarns are wholly formed in the United States and exported to Honduras. In Honduras, the yarns are knit into jersey fabric for the body and sleeves, and rib knit fabric for the neckband. The fabrics are dyed, and the neckband fabric is cut to form the neckband. The body and sleeve fabric and the neckband are exported to Haiti.

In Haiti, the body and sleeve fabric is cut into components, and all components are sewn and assembled into the finished garment using thread of unidentified origin. A label of unidentified origin is attached. You state that the thread and label will not exceed 25 percent of the cost of the components of the assembled article.

The finished garments are exported directly from Haiti to the United States.

Scenario 2:

Cotton yarns are wholly formed in the United States and exported to the Dominican Republic.

In the Dominican Republic, the yarns are knit into jersey fabric for the body and sleeves, and rib knit fabric for the neckband. The fabrics are dyed, and the neckband fabric is cut to form the neckband. The body and sleeve fabric and the neckband are exported to Haiti.

In Haiti, the body and sleeve fabric is cut into components, and all components are sewn and assembled into the finished garment using thread of unidentified origin. A label of unidentified origin is attached. You state that the thread and label will not exceed 25 percent of the cost of the components of the assembled article.

The finished garments are exported directly from Haiti to the United States.

Scenario 3:

Yarns are wholly formed in Honduras, Guatemala, or El Salvador and exported to the Dominican Republic.

In the Dominican Republic, the yarns are knit into jersey fabric for the body and sleeves, and rib knit fabric for the neckband. The fabrics are dyed, and the neckband fabric is cut to form the neckband. The body and sleeve fabric and the neckband are exported to Haiti.

In Haiti, the body and sleeve fabric is cut into components, and all components are sewn and assembled into the finished garment using thread of unidentified origin. A label of unidentified origin is attached. You state that the thread and label will not exceed 25 percent of the cost of the components of the assembled article.

The finished garments are exported directly from Haiti to the United States.

Scenario 4:

Yarns are wholly formed in a country in Asia and exported to the Dominican Republic.

In the Dominican Republic, the yarns are knit into jersey fabric for the body and sleeves, and rib knit fabric for the neckband. The fabrics are dyed, and the neckband fabric is cut to form the neckband. The body and sleeve fabric and the neckband are exported to Haiti.

In Haiti, the body and sleeve fabric is cut into components, and all components are sewn and assembled into the finished garment using thread of unidentified origin. A label of unidentified origin is attached. You state that the thread and label will not exceed 25 percent of the cost of the components of the assembled article.

The finished garments are exported directly from Haiti to the United States. Scenario 5:

Yarns are wholly formed in Honduras, Guatemala, or El Salvador and exported to Honduras.

In Honduras, the yarns are knit into jersey fabric for the body and sleeves, and rib knit fabric for the neckband. The fabrics are dyed, and the neckband fabric is cut to form the neckband. The body and sleeve fabric and the neckband are exported to Haiti.

In Haiti, the body and sleeve fabric is cut into components, and all components are sewn and assembled into the finished garment using thread of unidentified origin. A label of unidentified origin is attached. You state that the thread and label will not exceed 25 percent of the cost of the components of the assembled article.

The finished garments are exported directly from Haiti to the United States.

Scenario 6:

Yarns are wholly formed in a country in Asia and exported to Honduras.

In Honduras, the yarns are knit into jersey fabric for the body and sleeves, and rib knit fabric for the neckband. The fabrics are dyed, and the neckband fabric is cut to form the neckband. The body and sleeve fabric and the neckband are exported to Haiti.

In Haiti, the body and sleeve fabric is cut into components, and all components are sewn and assembled into the finished garment using thread of unidentified origin. A label of unidentified origin is attached. You state that the thread and label will not exceed 25 percent of the cost of the components of the assembled article.

The finished garments are exported directly from Haiti to the United States.

CBTPA - LAW AND ANALYSIS:

The CBTPA provides certain specified trade benefits for countries of the Caribbean region. The Act provides for duty-free treatment for certain textile and apparel articles that meet the requirements set forth in Section 211 of the CBTPA (amended 213(b) of the Caribbean Basin Economic Recovery Act (CBERA), codified at 19 U.S.C. 2703(b)). A country’s eligibility for benefits under the CBTPA is contingent upon its designation as a beneficiary country by the President of the United States. In addition, the United States Trade Representative (USTR) must issue a determination, published in the Federal Register, that the beneficiary country has taken the measures required by the Act to implement and follow, or is making substantial progress toward implementing and following, certain customs procedures, drawn from Chapter 5 of the North American Free Trade Agreement (NAFTA), that allow the United States to verify the origin of products. Once both of these have occurred, a beneficiary country is entitled to the preferential treatment provided for by the CBTPA.

The provisions implementing the textile provisions of the CBTPA are contained, for the most part, in Subchapter XX, Chapter 98, HTSUS (two provisions may be found in subheading 9802.00.80, HTSUS).

Pursuant to U.S. Note 1 to Subchapter XX, Chapter 98, HTSUS, Haiti is a beneficiary country under the CBTPA.

Further, U.S. Note 5 to Subchapter XX, Chapter 98, HTSUS, provides as follows:

Articles that undergo production in a CBTPA beneficiary country and a former CBTPA beneficiary country. (a) For purposes of determining eligibility of an article for preferential treatment under this note references to—

(i) a “CBTPA beneficiary country” shall be considered to include any former CBTPA beneficiary country, and

(ii) CBTPA beneficiary countries shall be considered to include former CBTPA beneficiary countries,

if the article, or a good used in the production of the article, undergoes production in a CBTPA beneficiary country.

Because Style PCTBD542025 undergoes production in Haiti (a CBTPA beneficiary country), the former CBTPA beneficiary countries of Honduras, the Dominican Republic, Guatemala, and El Salvador are considered former CBTPA beneficiary countries pursuant to U.S. Note 5.

The regulations pertinent to the textile provisions of the CBTPA may be found at §10.221 through 10.228 of the CBP Regulations (19 CFR 10.221 through 10.228). Specifically, 19 CFR 10.223 sets forth the textile articles eligible for preferential treatment under the CBTPA. Pursuant to 19 CFR 10.223(a)(5), these articles include:

Non-underwear t-shirts, classifiable under subheadings 6109.10.00 and 6109.90.10 of the HTSUS, made in one or more CBTPA beneficiary countries from fabric formed in one or more CBTPA beneficiary countries from yarns wholly formed in the United States.

The above-noted provision is set out in 9820.11.12, HTSUS, as follows:

T-shirts, other than underwear, classifiable in subheadings 6109.10.00 and 6109.90.10 of the tariff schedule, made in one or more such countries from fabric formed in one or more such countries from yarns wholly formed in the United States, subject to the provisions of U.S. note 2(c) to this subchapter.

Additionally, 19 CFR 10.223(c)(1)(i) provides, in relevant part, as follows:

As article otherwise described under paragraph (a) of this section will not be ineligible for the preferential treatment referred to in §10.221 because the article contains:

(A) Findings and trimmings of foreign origin, if the value of those findings and trimmings does not exceed 25 percent of the cost of the components of the assembled article. For purposes of this section “findings and trimmings” include… labels, and sewing thread[.]

The above-noted provision is set out, in relevant part, in U.S. Note 3 to Chapter 98, HTSUS, as follows:

(a) An article otherwise eligible for preferential tariff treatment under any provision of this subchapter shall not be ineligible for such treatment because the articles contains—

(i) findings or trimmings of foreign origin, if the value of such findings and trimmings does not exceed 25 percent of the cost of the components of the assembled article[.]

(b) For purposes of subdivision (a)(i) above, findings or trimmings eligible for such subdivision include sewing thread,… and labels and other similar products.

You suggest that Style PCTBD542025, if produced as described under Scenarios 1 and 2 above, is eligible for CBTPA preferential tariff treatment pursuant to 9820.11.12, HTSUS. We agree. Further, you suggest that Style PCTBD542025, if produced as described under each of the above-noted scenarios, is eligible for CBTPA preferential tariff treatment based, in part, on various portions of GN 17. We disagree. GN 17 does not provide for CBTPA preferential tariff treatment for goods classifiable under subheading 6109.10.0012, HTSUS. Specifically, please note that GN 17(b) states, in relevant part, as follows:

[A]rticles provided for in a provision for which a rate of duty appears in the “Special” subcolumn followed by the symbol “R” in chapters 1 through 97 of the tariff schedule are those designated by the President to be eligible articles for purposes of the CBTPA pursuant to section 211 of the Act.

Since the symbol “R” does not appear in the “Special” subcolumn for subheading 6109.10.0012, HTSUS, it follows that GN 17 does not provide for CBTPA benefits for the subject good. Rather, as noted above, the provisions implementing the textile provisions of the CBTPA are contained primarily in Subchapter XX, Chapter 98, HTSUS.

HOLDING:

Style PCTBD542025, produced as described in Scenarios 1 and 2 above, will be eligible for preferential tariff treatment under the CBTPA, pursuant to 9820.11.12, HTSUS and U.S. Note 3(a) to Chapter 98, HTSUS. However, pursuant to Note 2(c) to Chapter 98, HTSUS, such preferential tariff treatment will be limited to an aggregate quantity of 12,000,000 dozen T-shirts imported during the period October 1, 2024 through September 30, 2025, and during subsequent one-year periods. The applicable rate of duty will be Free.

Style PCTBD542025, produced as described in Scenario 3 through 6 above, will not be eligible for preferential tariff treatment under the CBTPA, because neither 9820.11.12, HTSUS, nor any other Chapter 98 provision, is applicable to any of these scenarios.

Effective April 5, 2025, Executive Orders implemented “Reciprocal Tariffs.” All imported merchandise must be reported with either the Chapter 99 provision under which the reciprocal tariff applies or one of the Chapter 99 provisions covering exceptions to the reciprocal tariffs. At this time, products of Haiti will be subject to an additional ad valorem rate of duty of 10 percent. At the time of entry, you must report the Chapter 99 heading applicable to your product classification, i.e., 9903.01.25, in addition to subheading 6109.10.0012, HTSUS, listed above.

The tariffs and additional duties cited above are current as of this ruling’s issuance. 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 at https://hts.usitc.gov/.

The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP.

This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection 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, please contact National Import Specialist Maryalice Nowak at [email protected].
Sincerely,

(for)
Denise Faingar
Acting Director
National Commodity Specialist Division