CLA-2 CO:R:C:S 556239 WAW
Anthony T. Docal
Docal Associates, Inc.
Woodbridge Professional Center South
264 Amity Road
Suite 208
Woodbridge, CT 06525
RE: Eligibility of industrial waterproof footwear for duty-free
treatment under the GSP; boots
Dear Mr. Docal:
This is in response to your letter dated August 27, 1991,
concerning the eligibility of two types of industrial waterproof
footwear from Mexico for duty-free treatment under the
Generalized System of Preferences (GSP) (19 U.S.C. 2461-2466).
Although samples of the merchandise were not submitted for our
review, a product brochure relating to the dipped neoprene boot
was included.
FACTS:
You state that you intend to import two types of waterproof
boots from Mexico. The first boot is described as a polyvinyl
chloride (PVC) injection molded boot. The PVC pellets, color
pigments, steel toecaps, nylon liner and all other raw materials
which are used to manufacture the boot in Mexico will be of U.S.
origin. In Mexico, the boot will be produced using conventional
injection molding technology.
The second type of boot which you intend to import is
described as a dipped neoprene rubber boot. You state that all
of the raw materials used to produce this boot which include raw
or uncured rubber, pigments, liquid neoprene rubber latex,
fabric (cotton or a synthetic material) to cut into the boot
liner, steel toecaps, etc., will also be entirely of U.S. origin.
ISSUE:
Whether the two types of industrial waterproof footwear are
entitled to duty-free treatment under the GSP.
LAW AND ANALYSIS:
Under the GSP, eligible articles the growth, product or
manufacture of a designated beneficiary developing country (BDC)
which are imported directly into the customs territory of the
U.S. from a BDC may receive duty-free treatment if the sum of (1)
the cost or value of materials produced in the BDC, plus (2) the
direct costs of the processing operations performed in the BDC,
is equivalent to at least 35% of the appraised value of the
article at the time of entry. See 19 U.S.C. 2463(b).
Mexico is a BDC. See General Note 3(c)(ii)(A), Harmonized
Tariff Schedule of the United States Annotated (HTSUSA). If the
Special Subcolumn opposite the HTSUSA classification of an
article contains a letter "A" or "A*", this indicates that the
article is an "eligible" article for purposes of the GSP.
Based upon your description of the merchandise and the
product brochure you submitted, the waterproof footwear is
properly classified under subheading 6401.10.00, HTSUSA, which
provides for waterproof footwear with outer soles and uppers of
rubber or plastics, the uppers of which are neither fixed to the
sole nor assembled by stitching, riveting, nailing, screwing,
plugging or similar processes: Footwear incorporating a
protective metal toe-cap, dutiable at the rate of 37.5% ad
valorem. The Special Subcolumn opposite this tariff provision
does not contain an "A" or "A*". Therefore, the two types of
waterproof footwear which are classified under this provision are
not eligible for duty-free treatment under the GSP. Moreover,
footwear has been designated as one of the import-sensitive
articles which are ineligible for GSP treatment. See 19 U.S.C.
2463(c)(1)(E). There are no other special tariff preference
programs which would be applicable to such footwear from Mexico.
HOLDING:
As the two types of industrial waterproof footwear are
ineligible articles under the GSP, they will not be entitled to
duty-free treatment, but will be dutiable on their full value
upon entry into the U.S.
Sincerely,
John Durant, Director
Commercial Rulings Division