CLA-2-61:RR:NC:TA:354 B86925
Ms. Maureen E. Gray
Barthco Trade Consultants, Inc.
7575 Holstein Avenue
Philadelphia, Pennsylvania 19153
RE: The tariff classification and country of origin marking of ladies underwear made from Canadian fabric which is cut into component parts in the U.S. and assembled in the Dominican Republic.
Dear Ms. Gray:
In your letter dated June 20, 1997, filed on behalf of Alpha Mills, you requested a classification and country of origin marking ruling. The provided samples will be returned as per your request.
Four samples of ladies underwear constructed of a fine gauge knitted 95% cotton 5% spandex fabric were submitted for review. Style 003621 consists of a undershirt and matching bikini panties in a solid white color. The undershirt features a scoop neckline and back with elasticized trim, elasticized spaghetti straps, and a hemmed bottom. The bikini panty features an elasticized waistband and leg openings.
Style 003671 consists of a undershirt and matching boy cut panty brief in a striped pattern. With the exception of the striped pattern fabric, this undershirt is identical to the style 003621 undershirt. The boy cut panty brief features an elasticized waistband and leg openings.
The applicable subheading for the style 003621 and 003671 panties will be 6108.21.0010, Harmonized Tariff Schedule of the United States (HTS), which provides for Women's or girls' slips, petticoats, briefs, panties, nightdresses, pajamas, negligees, bathrobes, dressing gowns and similar articles, knitted or crocheted: briefs and panties: of cotton: women's. The duty rate will be 8 percent ad valorem.
The applicable subheading for the style 003621 and 003671 undershirts will be 6109.10.0037, HTS, which provides for T-shirts, singlets, tank tops and similar garments, knitted or crocheted: of cotton . . . Women's or girls': underwear. The duty rate will be 19.6 percent ad valorem.
Styles 003621 and 003671 fall within textile category designation 352. Based upon international textile trade agreements products of the Dominican Republic are subject to quota and the requirement of a visa.
The designated textile and apparel categories may be subdivided into parts. If so, visa and quota requirements applicable to the subject merchandise may be affected. Part categories are the result of international bilateral agreements which are subject to frequent renegotiations and changes. To obtain the most current information available, we suggest that you check, close to the time of shipment, the Status Report on Current Import Quotas (Restraint Levels), an internal issuance of the U.S. Customs Service, which is available for inspection at your local Customs office.
According to your request, the importer intends to import Canadian fabric into the United States where it will be cut into component parts. The component parts will be forwarded to the Dominican Republic for assembly into the underwear sets. Once assembled, the sets will be imported into the United States. You have inquired about the articles eligibility pursuant to bilateral textile agreements for entry under the Special Access Program in connection with the Committee for Implementation of Textile Agreements (CITA) under 9802.00.8015. To qualify for the Special Access Program, all fabric components, with the exception of findings, trimmings and certain elastic strips not exceeding 25 percent of the cost of the components of the assembled product, must be U.S. formed and cut. The Canadian origin fabric of the instant shipment imported into the U.S., would not qualify under 9802.00.8015. Additional information and requests for "The Guide to the Caribbean Basin Initiative" may be directed to U.S. Customs Service CBI/Andean Help Desk, P.O. Box 52-3215, Miami, Florida 33152-3215, telephone (305) 869-2804 or 2815.
However, effective July 1, 1996 under the new rules of origin, as set forth in section 102.21, Customs Regulations (19 CFR 102.210), foreign fabric which is cut into components in the United States does not become a product of the United States because the cutting to size or shape no longer confers origin. But the new textile rules allow the duty exemption previously accorded these goods under 9802.00.80 to continue.
Section 10.25 of the Customs Regulations which implements the duty allowance provided under section 334(b)(4)(A) for textile components cut in the U.S. from foreign fabric, Customs stated:
Under section 334(b)(4), where goods are assembled
abroad from components cut in the United States
from foreign fabric (even though under section 334
rules the cut components are not products of the
United States and the assembling country is the
country of origin), the assembled goods, when
imported into the United States, will continue to
receive the same duty treatment presently accorded
to such goods under subheading 9802.00.80,
HTSUS...section 334(b)(4) serves to preserve a
tariff treatment that otherwise would no longer be
available under the section 334 origin rules...
Therefore, Customs will allow entry of goods assembled abroad from textile components cut to shape from foreign fabric in the U.S. to be made under subheading 9802.00.8065, but only for the purpose of calculating the duty allowance under this subheading. Customs will treat these textile components as if they were U.S. fabricated components.
The allowance of entry under subheading 9802.00.80 should not be interpreted as a determination of the country of origin of these cut components. The determination of the country of origin of textile components cut in the U.S. from foreign fabric will be made under a general application of the section 334 rules of origin.
Accordingly, the instant shipment will be eligible for a partial duty allowance under subheading 9802.00.80 pursuant to section 10.25, but the country of origin of the shipment, for quota, marking and other general origin purposes will be the Dominican Republic, the country where the components are assembled.
The marking statute (19 U.S.C.. 1304) requires articles of foreign origin imported into the U.S. to be marked to indicate the name of the country of origin of the article. In your letter, you suggested the following markings for the underwear: "Assembled in Dominican Republic" or "Made in Dominican Republic". Either of the aforementioned statements would be appropriate markings.
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 Brian Burtnik at 212-466-5880.
Sincerely,
Paul K. Schwartz
Chief, Textiles & Apparel Branch
National Commodity
Specialist Division