OT:RR:CTF:FTM H336057 MJD
Mr. Alfredo Guevara
Customs Consultant
Residencial las Luces Lirios 2, La Libertad
San Jose Villanueva, El Salvador
RE: DR-CAFTA Eligibility of Women's and Men's Jackets
Dear Mr. Guevara:
This is in response to your correspondence, dated November 10, 2023, in which you request a binding ruling on behalf of Youngone El Salvador SA DE CV, concerning the eligibility of women's and men's jackets for preferential tariff treatment under the Dominican Republic-Central America-United States Free Trade Agreement ("DR-CAFTA"). Your request, submitted as an electronic ruling request, was forwarded to this office from the National Commodity Specialist Division for review. Our ruling is set forth below.
FACTS:
The merchandise at issue is a women's jacket style # A7QEU-W and a men's jacket style # A7QEU-M. Both jackets are constructed from 100% nylon woven fabric visibly coated with plastic on the inner surface that has been treated on the outer surface with a durable water repellent. The garments are lined with two different fabrics. Most of the inner front panels, the bottom three inches of the back panel, and the sleeves are lined with 100% polyester woven fabric. The majority of the back panel and the top six inches of the front panels are constructed from 100% polyester mesh knit fabric. According to the requestor, the 100% nylon woven fabric lining makes up 61.60% of the main body of the garments, and the 100% polyester mesh knit fabric lining makes up 38.40% of the main body of the garments. The garments also feature a full front opening with a zipper closure that extends to the base of a scuba-type hood, an inner storm flap, an outer storm flap that secures with hook and loop tape, zippered waist pockets, and long sleeves with elastic cuffs. Additionally, the hoods of the garments contain one elastic drawcord for adjusting around the face, and the hem casing contains a drawcord for tightening around the waist.
The women's jacket style # A7QEU-W and the men's jacket style # A7QEU-M are manufactured entirely in El Salvador from the following components:
|Component |Country of Origin |Tariff Classification |
|The 100% nylon visibly coated woven fabric used |Made in South Korea |Subheading 5903.20, HTSUS |
|to manufacture the garment's outer shell, | | |
|including the hood and the sleeves | | |
|The 100% polyester woven fabric used to line all |Made in Thailand from yarn wholly formed |Subheading 5407.52, HTSUS |
|but the top six inches of the front panels, |in Taiwan | |
|bottom three inches of the back panel, and | | |
|sleeves | | |
|The 100% polyester knit mesh fabric used to line |Made in Taiwan from yarn wholly formed in|Subheading 6006.32, HTSUS |
|all but the bottom three inches of the back panel|Taiwan | |
|and the top six inches of the front panels | | |
|The 100% polyester woven fabric used to construct|Made in Guatemala of yarn wholly formed |Subheading 5407.52, HTSUS |
|the pocket bags of the waist pockets |in Guatemala | |
|The 70% latex, 30% polyester elastic inserted |Made in Guatemala of yarn wholly formed |Subheading 5806.20, HTSUS |
|into the sleeve cuffs of the garments |in Guatemala | |
|Polyester sewing thread |Dyed and finished in Costa Rica from yarn|Subheading 5402.33, HTSUS |
| |that was wholly formed in the United | |
| |States | |
|Zipper |Made in South Korea |Subheading 9607.19, HTSUS |
|Elastic drawcord |Made in Hong Kong |Subheading 5806.32, HTSUS |
|Cord lock |Made in Hong Kong |Subheading 3926.90, HTSUS |
|Labels |Made in Hong Kong |Subheading 5807.10, HTSUS |
The fabric used to make the jackets is cut into components, sewn, and assembled into the finished garments in El Salvador and shipped directly to the United States. The men's jacket style # A7QEU-M is classified in subheading 6210.20.50, HTSUS, which provides for "[g]arments, made up of fabrics of heading 5602, 5603, 5903, 5906 or 5907: Other garments, of the type described in heading 6201: Of man-made fibers: Other" and the women's jacket style # A7QEU-W is classified in subheading 6210.30.50, HTSUS, which provides for "[g]arments, made up of fabrics of heading 5602, 5603, 5903, 5906 or 5907: Other garments, of the type described in heading 6202: Of man-made fibers: Other."
ISSUE:
Whether the women's jacket style # A7QEU-W and the men's jacket style # A7QEU-M from El Salvador are eligible for preferential tariff treatment under DR-CAFTA.
LAW AND ANALYSIS:
DR-CAFTA was signed on August 5, 2004, and includes as parties the United States, the Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, and Costa Rica. The provisions of DR-CAFTA were adopted by the United States in the Dominican Republic-Central America-United States Free Trade Agreement Implementation Act, Public Law 109-53 (2005). The regulations for DR-CAFTA are set forth in 19 C.F.R. 10.581 et seq.
General Note ("GN") 29, HTSUS, sets forth the rules of origin for DR-CAFTA. GN 29(b), HTSUS, states, in pertinent part:
For the purposes of this note, subject to the provisions of subdivisions (c), (d), (m) and (n) thereof, a good imported into the customs territory of the United States is eligible for treatment as an originating good under the terms of this note if-
i) the good is a good wholly obtained or produced entirely in the territory of one or more of the parties to the Agreement;
ii) the good was produced entirely in the territory of one or more of the parties to the Agreement, and-
A) each of the nonoriginating materials used in the production of the good undergoes an applicable change in tariff classification specified in subdivision (n) of this note; or
B) the good otherwise satisfies any applicable regional value content or other requirements specified in subdivision (n) of this note; and the good satisfies all other applicable requirements of this note; or
iii) the good was produced entirely in the territory of one or more of the parties to the Agreement exclusively from originating materials.
The subject garments, the women's jacket style # A7QEU-W and the men's jacket style # A7QEU-M, are not wholly obtained or produced entirely in the territory of one or more DR-CAFTA countries and are therefore not eligible for treatment as an originating good pursuant to GN 29(b)(i). These garments are also not produced entirely in the territory of one or more parties to the DR-CAFTA exclusively from originating material and are therefore not eligible for treatment as an originating good pursuant to GN 29(b)(iii). Instead, pursuant to GN 29(b)(ii), we look to the applicable tariff shift rule set forth in GN 29(n) to determine whether or not the jackets are originating goods under DR-CAFTA. The subject women's jacket style # A7QEU-W and the men's jacket style # A7QEU-M are classified under subheading 6210.30.50, HTSUS, and subheading 6210.20.50, HTSUS, respectively. As goods of Chapter 62, the garments are subject to GN 29(n), Chapter 62, Chapter Rules 2, 6, and 35C, HTSUS, which provides:
Chapter Rule 2: For purposes of determining whether a good of this chapter is originating, the rule applicable to that good shall only apply to the component that determines the tariff classification of the good and such component must satisfy the tariff change requirements set out in the rule for that good.
...
Chapter Rule 6: Notwithstanding chapter rules 1, 3, 4 or 5 to this chapter, an apparel good of chapter 62 shall be considered originating regardless of the origin of any visible lining fabric described in chapter rule 1 to this chapter, narrow elastic fabrics as described in chapter rule 3 to this chapter, sewing thread or yarn of heading 5402 used as sewing thread described in chapter rule 4 to this chapter or pocket bag fabric described in chapter rule 5, provided such material is listed in U.S. note 20 to subchapter XXII of chapter 98 and the good meets all other applicable requirements for preferential tariff treatment under this note.
...
35C. A change to any other good of heading 6210 from any other chapter, except from headings 5111 through 5113, 5204 through 5212, 5310 through 5311, chapter 54, headings 5508 through 5516, 5801 through 5802 or 6001 through 6006, provided that the good is cut or knit to shape, or both, and sewn or otherwise assembled in the territory of one or more of the parties to the Agreement.
In the instant case, the component that determines that classification of both jackets is the visibly coated 100% nylon woven fabric, which is classified in heading 5903, HTSUS, and since the tariff shift rule requires a change to any other heading except specifically mentioned headings, which does not include heading 5903, HTSUS, and also requires the goods to be made in one of the DR-CAFTA countries which the jackets are because they are cut into components, sewn, and assembled into finished garments in El Salvador, the tariff shift requirement specified in GN 29(n), Chapter 62, Chapter Rule 35C, HTSUS, is met. However, in addition to meeting the tariff shift requirement noted above, the jackets must also satisfy any applicable chapter rules found in GN 29(n) Chapter 62 which states:
Chapter Rule 1: Except for fabrics classified in tariff item 5408.22.10, 5408.23.11, 5408.23.21 or 5408.24.10, the fabrics identified in the following headings and subheadings, when used as visible lining material in certain men's and women's suits, suit-type jackets, skirts, overcoats, carcoats, anoraks, windbreakers and similar articles, other than men's and boys' and women's and girls' suits, trousers, suit-type jackets and blazers, vests and women's and girls' skirts of wool fabric, of subheadings 6203.11, 6203.31, 6203.41, 6204.11, 6204.31, 6204.51, 6204.61, 6211.39 or 6211.49, provided that such goods are not made of carded wool fabric or made from wool yarn having an average fiber diameter of less than or equal to 18.5 microns, must be both formed from yarn and finished in the territory of one or more of the parties to the Agreement:
5111 through 5112, 5208.31 through 5208.59, 5209.31 through 5209.59, 5210.31 through 5210.59, 5211.31 through 5211.59, 5212.13 through 5212.15, 5212.23 through 5212.25, 5407.42 through 5407.44, 5407.52 through 5407.54, 5407.61, 5407.72 through 5407.74, 5407.82 through 5407.84, 5407.92 through 5407.94, 5408.22 through 5408.24, 5408.32 through 5408.34, 5512.19, 5512.29, 5512.99, 5513.21 through 5513.49, 5514.21 through 5515.99, 5516.12 through 5516.14, 5516.22 through 5516.24, 5516.32 through 5516.34, 5516.42 through 5516.44, 5516.92 through 5516.94, 6001.10, 6001.92, 6005.35 through 6005.44, or 6006.10 through 6006.44.
Chapter Rule 2
... If the rule requires that the good must also satisfy the tariff change requirements for visible lining fabrics listed in chapter rule 1, such requirement shall only apply to the visible lining fabric in the main body of the garment, excluding sleeves, which covers the largest surface area, and shall not apply to removable linings.
Here, there are two fabrics that make up the visible lining of both jackets. The first fabric is a 100% polyester woven fabric used to line all but the top six inches of the front panels, the bottom three inches of the back panel, and the sleeves. This fabric is made in Thailand from yarn wholly formed in Taiwan, and is classified in heading 5407.52, HTSUS. The second fabric is a 100% polyester knit mesh fabric used to line all but the bottom three inches of the back panel and the top six inches of the front panels. This fabric is made in Taiwan from yarn wholly formed in Taiwan, and is classified in subheading 6006.32, HTSUS. According to the requestor, the 100% polyester woven fabric covers 61.60% of the main body of the garment, and the 100% polyester knit mesh fabric covers 38.40% of the main body of the garment. Therefore, the 100% polyester woven fabric that covers 61.60% of the main body of the garment is the visible lining that covers the largest surface area and is the only component that must satisfy GN 29(n), Chapter 62, Rule 1, HTSUS, and the lining requirement of GN 29(n), Chapter 62, HTSUS, Rule 2. Since this fabric is made in Thailand from yarn wholly formed in Taiwan, it is not formed from yarns and finished in the territory of one or more parties to the DR-CAFTA. Therefore, the jackets do not meet the requirements of GN 29(n), Chapter 62, HTSUS, Rule 1 nor do the garments meet the lining requirement of GN 29(n), Chapter 62, HTSUS, Rule 2.
Based on the facts provided, women's jacket # style A7QEU-W and men's jacket style # A7QEU-M do not qualify for DR-CAFTA preferential treatment because they do not meet the requirements of GN 29(b)(ii)(A). Specifically, the fabric used to construct the visible lining in the main body of the jackets are not formed from yarn and finished in the territory of one or more of the parties to the Agreement per the requirements of GN 29(n), Chapter 62, Chapter Rule 1, HTSUS, and the lining requirement of GN 29(n), Chapter 62, Chapter Rule 2, HTSUS. Therefore, the jackets are not entitled to a free rate of duty under the DR-CAFTA.
HOLDING:
Based on the facts set forth above, women's jacket style # A7QEU-W and men's jacket style # A7QEU-M, do not qualify for preferential treatment under the rules of DR-CAFTA.
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 CBP officer handling the transaction.
Please note that 19 C.F.R. 177.9(b)(1) provides that "[e]ach ruling letter is issued on the assumption that all of the information furnished in connection with the ruling request and incorporated in the ruling letter, either directly, by reference, or by implication, is accurate and complete in every material respect. The application of a ruling letter by a Customs Service field office to the transaction to which it is purported to relate is subject to the verification of the facts incorporated in the ruling letter, a comparison of the transaction described therein to the actual transaction, and the satisfaction of any conditions on which the ruling was based."
Sincerely,
Sarah Kafka, Chief
Food, Textiles, and Marking Branch