CLA-2-64:S:N:N6:346 814122
Ms. Janet S. Cool
Daniel Green Company
Dolgeville, NY 13329-1398
RE: The tariff classification, user fees and country of origin
marking of footwear uppers from the Dominican Republic; CBI-2
Dear Ms. Cool:
In your letter dated August 25, 1995, you requested a tariff
classification ruling for two sample uppers that you have
identified as Style #'s 92100 and 92170. Both these shoe uppers,
you state, will be assembled in the Dominican Republic from
component parts that are of 100% U.S. origin. The assembly of the
various upper components will be accomplished by stitching and
gluing processes. All of the component parts used in making these
uppers will be shipped directly from the USA to the Dominican
Republic without entering the commerce of any other country.
The sample uppers you have provided have predominately
textile external surfaces, with leather toe caps, leather heel
counters and extensive leather accessories and reinforcements
stitched-on at the sides, over the eyelets and across the toes.
The only differences between the two uppers, aside from the color
of the textile vamps, is that #92100 has a five eyelet front lace
closure and #92170 has a two strap "hook and loop" type tab front
closure. Both uppers have completely open bottoms.
Therefore, both these shoe uppers will be classified in
subheading 9802.00.8040, Harmonized Tariff Schedule of the United
States (HTS), 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 which meet
the conditions of U.S. 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.
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 classification that would ordinarily apply to these items
is 6406.10.7000, Harmonized Tariff Schedule of the United States
(HTS), which provides for shoe uppers, which are less than formed
uppers with insoles which would cover all or most of the bottom of
the wearer's foot; 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); and in which the upper's external surface is over 50% leather
after every leather accessory or reinforcement is included as part
of the upper's external surface.
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 the submitted sample uppers have sewn-on cloth
labels at the tops of the tongues which include the misleading
statement "Made in U.S.A." Questions regarding what would be
acceptable marking, given the fact that these uppers were actually
assembled in the Dominican Republic of U.S. components, or, if you
intend to mark the finished shoes "Made in USA", must be decided by
the Federal Trade Commission (FTC), Division of Enforcement. The
FTC has 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".
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