CLA-2 RR:CR:SM 562198 KSG
Christopher P. Zubyk
Bodine Business Products
2099 Bodine Road, suite 100
Malvern, PA 19355
RE: African Growth and Opportunity Act; subheading 9819.11.09; U.S. Note 2, Subchapter XIX, Chapter 98
Dear Mr. Zubyk:
This is in response to your letter of May 10, 2001, requesting a binding ruling on the eligibility of certain vests for duty-free treatment under the African Growth and Opportunity Act (“AGOA”). You have submitted a sample for our review.
FACTS:
The garment involved in this case is a women's vest, style number 67790 and 12099, made from 65% polyester/35% cotton woven fabric. You state that this garment is classified in subheading 6211.43.0076, of the Harmonized Tariff Schedule of the United States ("HTSUS").
The yarn, sewing thread and fabric will be made in South Africa. You also stated that the buttons and other trimmings will be made in South Africa.
ISSUE:
Whether the vests, manufactured as described above, are eligible for duty free treatment under the AGOA.
LAW AND ANALYSIS:
Title I of the Trade and Development Act of 2000, Pub. L 106-200, 114 Stat. 251, May 18, 2000, referred to as the African Growth and Opportunity Act (“AGOA”), seeks to promote trade opportunities between the U.S. and the countries of sub-Saharan Africa. The AGOA provides for the extension of duty-free treatment under the GSP to non-textile articles normally excluded from GSP duty-free treatment that are not import sensitive; and the entry of specific textile and apparel articles free of duty. In order to implement the AGOA, Customs issued Interim Regulations in T.D. 00-67, 65 Fed. Reg. 59668, which became effective October 1, 2000. With regard to the textile and apparel provisions, the law became effective on October 1, 2000, and shall remain in effect through September 30, 2008. See Sec. 112(f), AGOA.
The enhanced trade benefits provided by the AGOA are available to eligible textile and apparel articles imported directly from a country (1) that is designated as a beneficiary sub-Saharan African country and (2) which the U.S. Trade Representative (“USTR”) has determined by a proclamation published in the Federal Register has satisfied the requirements of the AGOA and therefore should be afforded the tariff treatment authorized in such Act. Such countries shall be enumerated in U.S. Note 1, Subchapter XIX, Chapter 98, HTSUS, whenever the USTR issues a Federal Register notice as described herein. See Presidential Proclamation 7350, Annex, dated October 2, 2000, 65 Fed. Reg. 59321.
The Republic of South Africa was designated as a beneficiary sub-Saharan African country under AGOA by Presidential Proclamation 7350. The USTR issued a determination finding that South Africa has adopted an effective visa system and related procedures to prevent unlawful transshipment and the use of counterfeit documents in connection with shipments of textile and apparel articles and has implemented and follows, or is making substantial progress toward implementing and following, the customs procedures required by the AGOA, effective March 7, 2001. See 66 Fed. Reg. 14425, dated March 12, 2001.
Subheading 9819.11.09, HTSUS, provides as follows:
Apparel articles wholly assembled in one or more such countries from fabric wholly formed in one or more such countries from yarn originating in either the United States or one or more such countries (including fabrics not formed from yarns, if such fabrics are classifiable under heading 5602 or 5603 and are wholly formed and cut in one or more such countries), subject to the provisions of U.S. Note 2 to this subchapter.
U.S. Note 2, Subchapter XIX, Chapter 98, HTSUS, provides for a quantitative restriction for apparel articles classified in subheading 9819.11.09. U.S. Note 2(a) and (b), provide:
(a) Imports of apparel articles under subheadings 9819.11.09 and 9819.11.12 shall be limited, in the period beginning on the date announced in a notice published in a Federal Register by the United States Trade Representative and continuing through the close of September 30, 2001, to an aggregate quantity not to exceed 1.5 percent of the aggregate square meter equivalents of all apparel articles imported into the United States in the preceding 12-month period for which data are available. Of that aggregate quantity, an amount not to exceed 1 percent of such aggregate square meter equivalents shall be eligible to enter under such subheadings during the period beginning on the date announced in such Federal Register notice and continuing through the close of December 31, 2000. The remaining 0.5 percent of such aggregate square meter equivalents, together with any quantity remaining unfilled from the 1 percent eligible to enter prior to January 1, 2001, shall be eligible to enter under such subheadings during the period beginning on January 1, 2001 and continuing through the close of September 30, 2001.
(b) Such imports of apparel articles under subheadings 9819.11.09 and 9819.11.12 shall be limited, in each of the seven one-year periods beginning on October 1, 2001, to an aggregate quantity not to exceed the applicable percentage set forth herein of aggregate square meter equivalents of all apparel articles imported into the United States in the preceding 12-month period for which data are available:
12-Month Period Applicable Percentage
October 1, 2001 through September 30, 2002 1.7857
October 1, 2002 through September 30, 2003 2.0714
October 1, 2003 through September 30, 2004 2.3571
October 1, 2004 through September 30, 2005 2.6428
October 1, 2005 through September 30, 2006 2.9285
October 1, 2006 through September 30, 2007 3.2142
October 1, 2007 through September 30, 2008 3.5
In this case, the yarn is spun in South Africa, the fabric is wholly formed and cut in South Africa, the sewing thread is from South Africa and the apparel is wholly assembled in South Africa.
It appears that a pellon backing is used for embroidery on the front of the garment and we have no specific information as to the country of origin of this item. Customs notes that you indicate all trim items will be sourced in South Africa. We assume that you are including findings in your reference to trim items and that these trim items are of South African origin.
We assume for the purpose of this ruling that the pellon is of qualifying African origin. If this is not the case, Customs would need to address the issue of whether the pellon backing would be considered a finding.
Based on the facts presented, the garments would be entitled to be classified in subheading 9819.11.09, HTSUS, subject to the quantitative limits set forth in U.S. Note 2, Subchapter XIX, Chapter 98, HTSUS. The garments are eligible for preferential treatment under the AGOA subject to the quantitative limitations and a valid visa. See TBT-01-018, available at www.agoa.gov for the visa requirements for apparel goods from South Africa.
HOLDING:
Based on the information provided, the vests are eligible for duty free treatment under subheading 9819.11.09, HTSUS, subject to the quantitative limitations set forth in U.S. Note 2, Subchapter XIX, Chapter 98, HTSUS, and a valid visa, and assuming that the vests are imported from a designated beneficiary country directly into the customs territory of the United States.
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