OT:RR:CTF:VS H258006 CMR
Jennifer R. Diaz, Esq.
Becker & Poliakoff
121 Alhambra Plaza, 10th Floor
Coral Gables, FL 33134
RE: Eligibility of certain men’s Guayabera-style shirts for preferential tariff treatment under the U.S. – Panama Trade Promotion Agreement; Heading 9822.09.63, HTSUS
Dear Ms. Diaz:
This is in response to your request of July 31, 2014, requesting a ruling on behalf of your client, Confecciones Comodoro, on the eligibility of certain men’s shirts for preferential tariff treatment under the United States – Panama Trade Promotion Agreement (PANTPA). Specifically, you request a ruling on whether the garments, samples of which were submitted, qualify for classification in heading 9822.09.63, Harmonized Tariff Schedule of the United States (HTSUS) as Guayabera shirts meeting the requirements of Note 41, Subchapter XXII, Chapter 98, HTSUS.
FACTS:
You submitted 5 styles of men’s short sleeve Guayaberas – styles 01-0002-02A2-RC, 01-0014-22-01-R-C, 01-0014-22-R-C, 01-0015-27-02-R-C, and 01-0008-09-R-C. You indicate that the garments will be made from woven fabrics comprising a variety of fiber combinations including 100% linen, 100% cotton, 100% polyester, and blends of cotton/polyester, cotton/linen, cotton/rayon, polyester/linen, and polyester/rayon with either the cotton or polyester predominating by weight in the fiber blends.
All of the submitted Guayaberas have the following features: short sleeves, a center front placket with button closure that runs the full length of the garment, a pointed collar, front and back yokes with no shoulder seam, pleats that run the full length of the garment on both sides of the center front placket from the yoke to the hem with a decorative button where the pleats meet the yoke with corresponding pleats that run the full length of the garment on both sides of the back from the yoke to the hem with a decorative button where the pleats meet the yoke (one style has three columns of pleats on the back), two chest pockets, two pockets at the waist, a straight hem, and side slits with a one button closure, except for one style which has a two-button closure. The pockets feature pleating which lines up with the columns of pleating on the garment. The pockets also feature a button at the top center of each pocket.
You indicate that the pleats on the garments are made by either being pintucked into the fabric, or by sewing a strip of pintucked pleats onto the Guayabera. The thickness of the fabric used to make the Guayabera is determinant of the manner in which the pleats are made. The submitted samples exhibit the different methods. For example, the 100% cotton sample has pintucked pleats sewn into the fabric of the garment, while the 100% linen sample has strips of pintucked pleats sewn onto the fabric of the garment. By email, dated December 4, 2014, you informed this office that the pleats for the Guayaberas are created in your client’s factory in Panama.
You describe the manufacturing process for the Guayaberas as follows:
The fabrics are produced in China.
The sewing thread is produced in China.
The buttons are produced in China.
The pleating is adhered in Panama.
The garments are both cut and sewn or otherwise assembled in Panama.
The garments are exported directly to the United States from Panama.
You state the Guayaberas are cut, sewn and assembled in Panama by your client and are classified as men’s shirts of heading 6205, HTSUS. We note New York Ruling Letter (NY) N252747, dated May 23, 2014, issued to you, on behalf of your client, supports your statement that the garments are classified in heading 6205, HTSUS. You assert that the Guayaberas qualify for preferential tariff treatment under heading 9822.09.63, HTSUS.
ISSUE:
Whether the submitted Guayaberas, described above and manufactured as set forth above qualify for classification in heading 9822.09.63, HTSUS, and preferential tariff treatment under the PANTPA.
LAW AND ANALYSIS:
On October 21, 2011, the President signed into law the United States-
Panama Trade Promotion Agreement Implementation Act (the ‘‘Act’’), Public
Law 112–43, 125 Stat. 497 (19 U.S.C. 3805 note), which approved and made
statutory changes to implement the PANTPA. The PANTPA is implemented in the tariff schedule in General Note 35 (GN), HTSUS. Subchapter XIX to Chapter 99 and certain provisions within Subchapter XXII of Chapter 98 provide for temporary tariff-rate quotas, preferential tariff treatment for certain goods, and applicable safeguards implemented by the PANTPA. Benefits under the PANTPA were effective on or after October 31, 2012.
You do not seek preferential tariff treatment for the Guayaberas under General Note 35, HTSUS, which implements the United States - Panama Trade Promotion Agreement Implementation Act, as you indicate the garments would not qualify under the GN. Heading 9522.09.63, HTSUS, provides for:
Apparel goods described in U.S. note 41 to this subchapter and entered pursuant to its provisions . . . .
Note 41, Subchapter XXII, Chapter 98, states:
Heading 9822.09.63 shall apply to dresses of heading 6204 and shirts and blouses of heading 6205 or 6206 (whether or not such goods are originating goods under the terms of general note 35 to the tariff schedule) containing the following:
short or long sleeves;
a center front placket with button closure that runs the full length of the good;
a collar and yoke;
(d) either pleats or embroidery that run the full length of the good on both sides of the center front placket from the yoke to the hem with a decorative button where the pleats or embroidery meet the yoke;
(e) corresponding pleats or embroidery that run the full length of the good on both sides of the back from the yoke to the hem with a decorative button where the pleats or embroidery meet the yoke;
(f) four pockets with buttons on the front of the good;
(g) a straight hem; and
(h) side vents or slits with a button closure,
provided that the good is both cut and sewn or otherwise assembled in the territory of the United States or Panama.
We have examined the submitted garments. They meet the garment features required by U.S. Note 41. In addition, the garments are produced by cutting the fabric into component parts, and sewing or otherwise assembling those parts to make the garments in Panama. The assembly includes the creation of the pleats in Panama, either by directly pintucking the fabric of the shirt, or by separately pintucking a strip of fabric to create a pintucked panel that is sewn onto the shirt. Creation of the pleats outside Panama or the U.S. would have disqualified the garments from classification in heading 9822.09.63, HTSUS. As all of the assembly, including the pleating, occurs in Panama, the submitted garments meet the requirements for classification in heading 9822.09.63, HTSUS, and preferential tariff treatment under the PANTPA. Further, whether the garment has 3 columns of pleating on the back or only 2, will not affect the garment meeting the descriptive requirement of U.S. Note 41 as it is the presence of the pleats that is a requirement. The note requires corresponding pleats run the full length of the garment on both sides of the back from the yoke to the hem with a decorative button where the pleats meet the yoke. The style with an additional column of pleating in the center back still meets the requirement for corresponding pleats on the back. The additional column of pleating does not preclude that garment from classification in heading 9822.09.63, HTSUS. Guayaberas generally feature 3 columns of pleats on the back.
HOLDING:
The submitted shirts, known as Guayaberas, meet the requirements of U.S. Note 41, Subchapter XXII, Chapter 98, and are classifiable in heading 9822.09.63, HTSUS. As such, the goods are eligible for preferential tariff treatment under the PANTPA and subject to a duty rate of FREE.
A copy of this ruling letter should be attached to the entry documents filed at the time the goods are entered. If the documents have been filed without a copy, this ruling should be brought to the attention of the CBP officer handling the transaction
Sincerely,
Monika R. Brenner, Chief
Valuation and Special Programs Branch