CLA-2 RR:CR:SM 560810 KSG
Catherine L. Holmes
The A.W. Fenton Company, Inc.
P.O. Box 360614
Columbus, Ohio 43236-0614
RE: boots; U.S. note 2(b); country of origin marking
Dear Ms. Holmes:
This is in reference to your letter received January
12, 1998, requesting a binding ruling on behalf of your
client, Rocky Shoes & Boots Co., Inc. You have submitted
two samples. You requested that the samples be returned.
FACTS:
Your client intends to export U.S. origin components to
the Dominican Republic where they will be made into finished
boots. The U.S. origin components are: leather that is
tanned, dyed and sanded in the U.S.; textile fabric;
footbeds; linings; soles; laces; eyelets; hardware; glue;
thread; and waterproof tape. The leather, textile fabric,
footbeds and linings are cut in the Dominican Republic. The
soles, laces, eyelets, hardware, glue, threads, waterproof
tape and all other parts are shipped from the U.S. to the
Dominican Republic in condition ready for assembly.
The processing done in the Dominican Republic includes
glueing, stitching, attaching hangtags and packaging in
addition to cutting. All the components will be shipped
directly from the U.S. to the Dominican Republic without
entering the commerce of any other country.
ISSUES:
Whether the boots are eligible for a duty preference
under U.S. Note 2(b), subchapter II, Chapter 98, HTSUS.
What is the correct country of origin marking of the
boots?
LAW AND ANALYSIS:
I. U.S. Note 2(b) Eligibility
Section 222 of the Customs and Trade Act of 1990
(Public Law 101-382) amended U.S. Note 2, subchapter II,
Chapter 98, HTSUS (U.S. Note 2(b)), to provide for the duty
free treatment of articles (other than textile and apparel
articles, and petroleum and petroleum products) which are
assembled or processed in a Caribbean Basin Economic
Recovery Act (CBERA) beneficiary country (BC) wholly of
fabricated components or ingredients (except water) of U.S.
origin.
U.S. Note 2(b), provides as follows:
(b) No article (except a textile article, apparel
article, or petroleum, or any product derived from
petroleum, provided for in heading 2709 or 2710)
may be treated as a foreign article, or as subject
to duty, if--
(I) the article is--
(A) assembled or processed in whole of fabricated
components that are a product of the United States,
or
(B) processed in whole of ingredients (other than
water) that are a product of the United States, in
a beneficiary country; and
(ii) neither the fabricated components, materials or
ingredients, after exportation from the United
States, nor the article itself,
before importation into the
United States, enters the
commerce of any foreign country
other than a beneficiary
country.
As used in the note, the term "beneficiary country"
means a country listed in General Note 7(a), HTSUS. The
Dominican Republic is listed in General Note 7(a), HTSUS, as
a designated beneficiary country.
Customs has previously held that footwear are not
textile and apparel articles for purposes of U.S. Note 2(b),
regardless of whether they are subject to textile
agreements. See T.D. 91-88, 25 Cust. Bull. 45 (1991).
Therefore, the boots are not excluded from duty-free
treatment under U.S. Note 2(b).
With regard to the operations performed in the
Dominican Republic, the assembly and processing operations
which consist of cutting the fabric and leather and
assembling the cut pieces and other components are
encompassed by the operations specified in Note 2(b).
Therefore, if, in fact, all of the materials used to produce
the boots are of U.S. origin and have been shipped directly
to the Dominican Republic and the articles at issue are
shipped directly to the U.S. without entering into the
commerce of any foreign country other than a BC, the boots
will be entitled to duty-free treatment under Note 2(b),
provided all documentation requirements are met.
2. Country of origin marking requirements under
Note 2(b)
U.S. Note 2(b) prohibits Customs from treating these
articles as foreign. The provisions of 19 U.S.C. 1304
require that imported foreign articles be marked with their
country of origin. Pursuant to telex 9264071, dated
September 28, 1990, there is no basis for requiring that the
articles be marked with the Caribbean country of processing
or assembly. Therefore, the boots are not required to be
marked with the Caribbean country of assembly.
HOLDING:
The imported boots are eligible for duty free treatment
under U.S. Note 2(b) provided the documentation requirements
set forth in telex 9264071 (copy enclosed) are met. The
boots are not required to be marked with the Caribbean
country of assembly.
A copy of this ruling letter should be attached to the
entry documents filed at the time this merchandise is
entered. If the documents have been filed without a copy,
this ruling should be brought to the attention of the
Customs officer handling the transaction.
Sincerely,
John Durant, Director
Commercial Rulings Division
Encl.