CLA-2-61:OT:RR:NC:N3:356
Ms. Irma Jolon
INT, Sociedad Anonima
Calzada Roosevelt Edificio Tikal Futura
Torre Luna Nivel 17, 22-43 Zona 11, Guatemala
Guatemala 01011
RE: The tariff classification and status under the Dominican Republic-Central American-United States 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 tariff classification and eligibility under the DR-CAFTA of six men’s garments from Guatemala. Our response was delayed due to laboratory analysis. Your samples were destroyed during the analysis and cannot be returned.
This ruling is part of a split ruling request. Two of the garments (Styles YU73K001R and YU73K003R) were addressed in ruling number N283349, dated March 14, 2017. This ruling addresses the remaining four garments.
In the future, please note that binding rulings are limited to five (5) items of the same class or kind.
The Customs and Border Protection (CBP) laboratory has analyzed the fiber content of the fabrics of each of the four garments.
Style UYT13300 is a men’s garment that is cut and sewn from finely knit jersey fabrics. The front panel is of 51.2% cotton and 48.8% polyester, the rear panel is of 51.3% cotton and 48.7% polyester, the sleeves are of 50.7% cotton and 49.3% polyester, and the collar is of 50.9% cotton and 49.1% polyester. The garment features a rib knit crew neckline, short, hemmed sleeves, and a straight, hemmed bottom.
Style YU73K002R is a men’s cut and sewn garment that features a rib knit crew neckline, short, hemmed sleeves, a contrasting color insert that extends across the chest, and a straight, hemmed bottom. The garment is constructed from finely knit fabrics. The upper front panel is of 50.9% cotton and 49.1% polyester, the lower front panel is of 50.8% cotton and 49.2% polyester, the rear panel is of 50.3% cotton and 49.7% polyester, the sleeves are of 51.0% cotton and 49.0% polyester, the chest insert is of 50.2% cotton and 49.8% polyester, and the collar is of 50.4% cotton and 49.6% polyester. The fabric of the main body and sleeves measures 28 stitches per two centimeters counted in the horizontal direction.
Style YU71K010R is a men’s garment that is cut and sewn from finely knit jersey fabrics. The front and rear panels are of 50.2% polyester and 49.8% cotton, the sleeves are of 50.4% cotton and 49.6% polyester, and the collar is of 50.1% polyester and 49.9% cotton. It features a rib knit crew neckline, long, close-fitting, hemmed sleeves, and a straight, hemmed bottom.
Style YU73K000R is a men’s cut and sewn garment that features a contrasting color, rib knit crew neckline, short, hemmed, constrasting color sleeves, contrasting color front and rear yokes, and a straight, hemmed bottom. Style YU73K000R is constructed from finely knit fabrics. The front and rear panels are of 50.9% polyester and 49.1% cotton, the sleeves and yokes are of 50.4% cotton and 49.6% polyester, and the collar is of 50.2% polyester and 49.8% cotton. The fabric of the front and rear panels measures 28 stitches per two centimeters counted in the horizontal direction.
Styles YU71K010R and YU73K000R are each constructed of different knit fabrics that are, prima facie, classifiable under two different headings of the Harmonized Tariff Schedule of the Untied States (HTSUS). Each garment is therefore considered to be a composite good, with its classification determined by the fabric that imparts its essential character. HTSUS, General Rule of Interpretation 3(b), noted. The essential character of each of these garments is imparted by the polyester/cotton fabric of the front and rear panels.
The applicable subheading for Style UYT13300 will be 6109.10.0012, HTSUS, which provides for: T-shirts, singlets, tank tops and similar garments, knitted or crocheted: Of cotton: Men’s or boys’: Other T-shirts: Men’s. The rate of duty will be 16.5% ad valorem.
The applicable subheading for Style YU73K002R will be 6110.20.2069, HTSUS, which provides for: Sweaters, pullovers, sweatshirts, waistcoats (vests) and similar articles, knitted or crocheted: Of cotton: Other: Other: Other: Men’s or boys’: Other. The rate of duty will be 16.5% ad valorem.
The applicable subheading for Style YU71K010R 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 YU73K000R 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 are as follows:
For the front and rear panels of all garments and the sleeves of Style YU73K002R, the yarns and fabrics are manufactured in Guatemala from Korean polyester fibers and U.S. cotton fibers.
For the collars of all garments, the sleeves of Styles UYT13300, YU71K010R, and YU73K000R, the yokes of Style YU73K000R, and the chest insert of Style YU73K002R, the cotton/polyester fabrics are manufactured in Guatemala from Indian cotton/polyester yarns.
The thread, used to sew the garments, is formed and finished in Honduras from polyester fibers of U.S. origin.
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 (GN) 29, HTSUS, sets forth the criteria for determining whether a good is originating under the DR-CAFTA. GN 29(b), HTSUS (19 U.S.C. § 1202) states: 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 garments contain non-originating materials, they each must undergo the applicable change in tariff classification specified in GN 29(n) in order to meet the requirements of GN 29(b)(ii)(A).
GN 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 requirement set out in that rule for that good.
GN 29(n), Chapter 61, Chapter rule 4 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 sewing thread, used to assemble each of the garments, is formed and finished in one or more of the DR-CAFTA countries.
For goods classified in headings 6109 and 6110, GN 29(n)/61.25 requires:
A change to headings 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 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.
For Style UYT13300, the non-originating polyester staple fibers classified in heading 5503 meet the tariff shift rule. However, the non-originating cotton/polyester yarns classified in heading 5206 do not meet the tariff shift rule.
For Style YU73K002R, the non-originating polyester staple fibers classified in heading 5503 meet the tariff shift rule. However, the non-originating cotton/polyester yarns classified in heading 5206 do not meet the tariff shift rule.
GN 29(d)(i) provides, in pertinent part, that: A textile or apparel good that is not an originating good under the terms of this note, because certain fibers or yarns used in the production of the component of the good that determines the tariff classification of the good do not undergo an applicable change in tariff classification set out in subdivision (n) of this note, shall be considered an originating good if –
(A) the total weight of all such fibers or yarns in that component is not more than ten percent of the total weight of that component.
The non-originating cotton/polyester yarns of Style YU73K002R account for 9.5% of the weight of the garment’s fabrics. Accordingly, these yarns may be disregarded when determining whether the tariff shift rule has been met.
For Style YU71K010R, the non-originating polyester staple fibers are classified in heading 5503 and meet the tariff shift rule.
For Style YU73K000R, the non-originating polyester staple fibers are classified in heading 5503 and meet the tariff shift rule.
Based on the information provided, Style UYT13300 fails to qualify for DR-CAFTA preferential treatment, because it does not meet the requirements of GN 29(b)(ii)(A), HTSUS. This garment will not be entitled to a free rate of duty under the DR-CAFTA.
Styles YU73K002R, YU71K010R, and YU73K000R qualify for DR-CAFTA preferential treatment, because they meet the requirements of HTSUS, GN 29(b)(ii)(A). These garments 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