CLA-2-61:OT:RR:NC:N3:356
Ms. Irma Jolon
INT, S.A.
Calzada Roosevelt 22-43, Zona 11
Edificio Tikal Futura
Torre Luna Nivel 17
Guatemala 01011
RE: The tariff classification and status under the United States-Dominican Republic-Central America Free Trade Agreement (DR-CAFTA) of men’s knit garments from Guatemala
Dear Ms. Jolon:
In your letter dated February 2, 2017, you requested a ruling on the classification and status under the DR-CAFTA of six men’s garments from Guatemala.
This ruling is part of a split ruling request. The other portion of the request was assigned number N284179, and the items under consideration in that request consist of four of the six styles included with your submission (Style #s UYT13300, YU71K010R, YU73K002R, and YU73K000R). The items covered by N284179 have been forwarded to the Customs and Border Protection laboratory for analysis. This letter addresses the remaining two styles. The samples of these two styles will be retained by our office.
In the future, please note that binding rulings are limited to five (5) items of the same class or kind.
Style YU73K001R is a men’s cut and sewn garment which you state is constructed of 50% polyester, 50% cotton, knit fabric. The fabric is of jersey construction and measures 28 stitches per 2 centimeters counted in the horizontal direction. Style YU73K001R features a contrasting color rib knit crew collar; short, hemmed sleeves with contrasting color rib knit edging, and a straight, hemmed bottom.
Style YU73K003R is a men’s cut and sewn pullover which you state is constructed of 50% polyester, 50% cotton, knit fabric. The fabric is of jersey construction and measures 28 stitches per 2 centimeters counted in the horizontal direction. Style YU73K003R features a contrasting color rib knit crew neckline; short, hemmed sleeves; two contrasting color overlay stripes on each sleeve; and a straight, hemmed bottom.
Because Styles YU73K001R and YU73K003R are to be constructed from a 50/50 blend of fibers, they are classifiable pursuant to the Harmonized Tariff Schedule of the United States (HTSUS), Section XI, Note 2(A) and Subheading Note 2(A). The garments will be classified as if they consisted wholly of that one textile material which is covered by the heading which occurs last in numerical order among those which equally merit consideration. Even a slight change in the fiber content of these garments may result in a change of classification. The garments may be subject to Customs and Border Protection laboratory analysis at the time of importation and, if the fabric is other than a 50/50 blend, they may be reclassified by Customs at that time.
The applicable subheading for Style YU73K001R will be 6109.90.1049, HTSUS, which provides for T-shirts, singlets, tank tops and similar garments, knitted or crocheted: of other textile materials: of man-made fibers: men’s or boys’: other. The rate of duty will be 32% ad valorem.
The applicable subheading for Style YU73K003R will be 6110.30.3053, HTSUS, which provides for sweaters, pullovers, sweatshirts, waistcoats (vests) and similar articles, knitted or crocheted: of man-made fibers: other: other: other: other: other: men’s or boys’: other. The rate of duty will be 32% ad valorem.
The manufacturing operations for Styles YU73K001R and YU73K003R are as follows:
Polyester fibers from Korea and cotton fibers from the United States, used to produce the fabric for the body and sleeves of the garments, are imported into Guatemala.
In Guatemala, the polyester and cotton fibers are spun into yarns, and the yarns are knit into fabric.
Cotton and polyester fibers, used to manufacture the collars for both styles, the sleeve edging of Style YU73K001R, and the stripe overlays of Style YU73K003R, are sourced in India and spun into yarns in India.
The cotton/polyester yarns are imported into Guatemala.
In Guatemala, the yarns are knit into fabric.
The thread used to sew the garments is formed and finished in Honduras from polyester fiber of U.S. origin.
The thread is imported into Guatemala.
In Guatemala, the fabrics are cut, sewn and assembled into the finished garments.
The garments are exported directly from Guatemala to the United States.
General Note 29, HTSUS, sets forth the criteria for determining whether a good is originating under the DR-CAFTA. General Note 29(b), HTSUS, (19 U.S.C. § 1202) 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 non-originating 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.
As the goods contain non-originating materials, they must undergo an applicable change in tariff classification in order to meet the requirements of General Note 29(b)(ii)(A).
For goods classified in headings 6109 and 6110, GN 29(n)/61.25 requires, in pertinent part: A change to heading 6105 through 6111 from any other chapter, except from headings 5111 through 5113, 5204 through 5212, 5310 through 5311, chapter 54, headings 5508 through 5516 or 6001 through 6006, provided that:
(A) 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…
Further, General Note 29(n), Chapter 61, Chapter rule 2 states: 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 that rule for that good. The component that determines the classification of each good is the 50% polyester, 50% cotton knit fabric. Therefore, this is the only component that must satisfy the rule of origin set out in GN 29(n)/61.25.
In addition, the goods must satisfy Chapter rule 4 to Chapter 61. This rule states:
Notwithstanding chapter rule 2 to this chapter, a good of this chapter containing sewing thread of headings 5204, 5401 and 5508 shall be considered originating only if such sewing thread is both formed from yarns and finished in the territory of one or more of the parties to the Agreement. The polyester staple fibers from Korea, used to manufacture the fabric for the body and sleeves of the garments, are classified in heading 5503 and meet the tariff shift rule set out in GN 29(n)/61.25.
The polyester sewing thread, used to assemble the garments, is formed and finished in one or more of the DR-CAFTA countries. Based on the facts provided, Styles YU73K001R and YU73K003R qualify for DR-CAFTA preferential treatment, because they meet the requirements of HTSUS, GN 29(b)(ii)(A). The merchandise will be entitled to a free rate of duty under the DR-CAFTA.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the World Wide Web at https://hts.usitc.gov/current.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Maryalice Nowak at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division