CLA-2-64:S:N:N8:346 806060
Mr. Miguel Ruiz
Sig M. Glukstad, Inc.
Customs Brokers
P.O. Box 523730
Miami, FL 33152-3730
RE: The tariff classification, user fees, and country of origin
marking of footwear from the Dominican Republic ; CBI-2 .
Dear Mr. Ruiz:
In your letter dated January 13, 1995, you requested a tariff
classification ruling on behalf of your client, Daniel Green & Co.,
for two footwear styles. You also inquired as to whether the shoes
will be eligible for duty reduction under CBI II, subject to
country of origin marking requirements and subject to the
merchandise processing fee upon importation.
The articles in question are women's shoes, identified as
style numbers 50000 and 50010.
Style 50000 is a woman's slipper with a textile upper which
has a 1 inch high, sewn-on suede leather sidewall reinforcement all
around its lower perimeter. It also has a sewn-on rubber/plastic
outer sole. You state that this slip-on shoe is valued at $6.15
per pair.
Style 50010 is woman's bootie-type slipper, with an 8.5 inch
high textile upper that has a topline cinch-lace closure. It also
has a sewn-on suede leather outside heel counter, a 1 inch high
encircling suede sidewall reinforcement and a sewn-on,
rubber/plastic outer sole. You state that this bootie/slipper is
valued at $8.50 per pair.
2
You state that the importer proposes to ship 100 percent USA
origin components from the U.S., which are in condition ready for
assembly, to the Dominican Republic, where the components will be
assembled by sewing and gluing. The components will be shipped
directly from the USA to the Dominican Republic and will not enter
the commerce of any other country.
Therefore, both styles will be classified in HTS 9802.00.8040,
free of duty, as articles, not assembled in Mexico, that were
assembled abroad of fabricated components, the products of the
United States, which were exported in condition ready for assembly
without further fabrication, which have not lost their physical
identity, and which have not been advanced in value or improved in
condition abroad except by being assembled and except by operations
incidental to the assembly process, and that meet the conditions of
US note 2-b to Subchapter II of Chapter 98. We assume that you
will be able to supply the port of entry with whatever documents or
other evidence it deems necessary to confirm that those conditions
have, in fact, been met. Customs Headquarters has issued no
directives or guidelines so it would likely be useful to discuss
the documentation and evidence required with the Customs personnel
in each district in which you may make entry.
Items classified in 9802.00.8040 do not need to have any
country of origin marking when imported into the U.S. However, we
note that both styles of slippers are marked "Made in USA" on the
bottom of the outer sole. Regarding the "Made in USA", whether or
not the slippers may be so marked is a question that must be
decided by the Federal Trade Commission (FTC), Division of
Enforcement, as indicated in our Office of Trade Operations' letter
9264071, dated 9-28-90. The FTC has the primary responsibility
under statutes which determine when a "Made in USA" claim can be
made. You must submit a copy of your inquiry to the FTC with their
reply, if any, to the responsible Customs officer at the port of
entry prior to the release of any shipment(s) marked "Made in USA".
Per Statistical Note 2 to Subchapter II, you must split out on
the Customs entry, "the dutiable value, i.e., the total value of
the articles less the value of the U.S. fabricated components" and
assign to it the classification that would ordinarily apply in the
absence of US note 2-b to that Subchapter. Note that in this
context there is never any duty actually payable on this "dutiable
value". The classifications that would ordinarily apply to these
styles are indicated below.
For Style 50000, it is 6404.19.35, Harmonized Tariff Schedule
of the United States (HTS), which provides for footwear, in which
the upper's external surface is predominately textile materials; in
which the outer sole's external surface is predominately rubber
and/or plastics; which is of the slip-on type; which does not have
a foxing-like band almost wholly of rubber or plastics; and which
is 10% or more by weight of rubber and/or plastics.
3
For Style 50010, it is 6404.19.80, HTS, which provides for
footwear, in which the upper's external surface is predominately
textile materials (note that an accessory or reinforcement stitched
on top of another material is not part of the upper's external
surface, but the material hidden underneath is); in which the outer
sole's external surface is predominately rubber and/or plastics; in
which the upper's external surface is still 50% or less leather
even after every leather accessory or reinforcement present is
included as part of the upper's external surface; which is not of
the slip-on type; and which is valued over $6.50 but not over
$12.00 per pair.
Merchandise Processing Fees described in 19 CFR 24.23 will not
apply to this merchandise.
This ruling is being issued under the provisions of Section
177 of the Customs Regulations (19 C.F.R. 177).
A copy of this ruling letter should be attached to the entry
documents filed at the time this merchandise is imported. 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,
Jean F. Maguire
Area Director
New York Seaport