CLA-2-62:RR:NC:WA:355 J88861
Mr. Darrell Sekin, Jr.
DJS International Services, Inc.
P.O. Box 612785
DFW Airport, TX 75261
RE: Classification of Apparel Articles Made from Fabric Commercially Unavailable in the U.S.; U.S. Caribbean Basin Trade Partnership Act; Subheading 9820.11.27, HTSUS;
Dear Mr. Sekin:
This is in response to your letter dated September 12, 2003, requesting a binding ruling on the classification and eligibility of apparel articles made from certain cotton fabric for duty-free treatment under the United States-Caribbean Basin Trade Partnership Act (CBTPA). This request was made on behalf of George Wu, Inc. You submitted samples of the garments for our examination. FACTS: The fabrics of the garment submitted are stated to be made from 21NM single ring-spun yarns of different colors, classified in HTS 5208.43.00, of 2x2. twill weave construction, and weighing less than 200 grams per square meter. You state that the fabric is formed in China.
You indicate that the fabric will be cut and assembled into men’s pants, pajamas, men’s shirts, and women’s pants, in Nicaragua. You also state that all other fabrics used in the garment will be wholly formed in the United States from yarns wholly formed in the United States. We assume this includes the sewing thread used to assemble the garments. You believe the proper classification of these apparel articles would be under subheading 9820.11.27 of the Harmonized Tariff Schedule of the United States (HTSUS). ISSUE: What is the tariff classification of these garments and are they eligible for preferential tariff treatment under the CBTPA?
CLASSIFICATION:
Four garments were submitted and will be returned. All of the garments are stated to be made of 100% cotton woven fabric formed from 21NM single ring-spun yarns of different colors, in a 2x2 twill weave, and weighing under 200 grams per square meter.
The first garment, identified as style S101, is a man’s button-down collared shirt with a full front left over right front opening secured closed with seven buttons. The garment , sized “M”, features long sleeves with buttoned cuffs and a curved hemmed bottom.
The next garment is style S102, described as a men’s pajama set. The shirt has an open shawl collar, a left over right front opening secured closed by four oversize buttons, a chest pocket, deep hemmed long sleeves, a straight hemmed bottom and piping which edges along the front opening and collar area. The pants features an elasticized waistband with a drawstring, a one button fly and hemmed left openings. There are no pockets and the button on the fly is set off mid-center of the fly opening so as to create disproportionate “openings” along the fly. We assume that the shirt and pants are sold as a commercial unit, and are not intended to be sold as separates.
The third garment, identified as style S103, is a men’s pant, featuring an elasticized waistband with a drawstring, two side seam pockets, a one-button fly and hemmed leg openings.
The last garment, identified as style XS104 is a woman’s pull-on pant featuring an sewn-on elastic band waistband and loose fitting ribknit cuffs on the leg openings.
The applicable subheading for style S101 will be 6205.20.2046, Harmonized Tariff Schedule of the United States (HTS), which provides for men’s or boys’ shirts, of cotton, other, other, other, with two or more colors in the warp and/or the filling, napped. The general rate of duty is 19.8% ad valorem.
The applicable subheading for style S102 will be 6207.21.0010, HTS, which provides for men’s or boys’ nightshirts and pajamas, of cotton, with two or more colors in the warp and/or the filling, men’s. The general rate of duty is 9% ad valorem.
The applicable subheading for style S103 will be 6203.42.4015, HTS, which provides for men’s or boys’ trousers, bib and brace overalls, breeches and shorts, of cotton, other, other, trousers and breeches, men’s other. The general rate of duty is 16.7% ad valorem.
The applicable subheading for style S104 will be 6204.62.4020, HTS, which provides for women’s or girls’ trousers, bib and brace overalls, breeches and shorts, of cotton, other, other, other, trousers and breeches, women’s other. The general rate of duty is 16.7% ad valorem.
LAW AND ANALYSIS: The United States-Caribbean Basin Trade Partnership Act (CBTPA) provides certain specified trade benefits for countries of the Caribbean region. The Act extends North American Free Trade Agreement (NAFTA) duty treatment standards to non-textile articles that previously were ineligible for preferential treatment under the Caribbean Basin Economic Recovery Act (CBERA) and provides for duty-free and quota-free treatment for certain textile and apparel articles which meet the requirements set forth in Section 211 of the CBTPA (amended 213(b) of the CBERA, codified at 19 U.S.C. 2703(b)).
Beneficiary countries are designated by the President of the United States after having met eligibility requirements set forth in the CBPTA. Eligibility for benefits under the CBTPA is contingent on designation as a beneficiary country by the President of the United States and a determination by the United States Trade Representative (USTR), published in the Federal Register, that a beneficiary country has taken the measures required by the Act to implement and follow, or is making substantial progress toward implementing and following, certain customs procedures, drawn from Chapter 5 of the NAFTA, that allow the United States to verify the origin of products. Once both these designations have occurred, a beneficiary country is entitled to preferential treatment provided for by the CBTPA. Nicaragua is designated as a CBTPA beneficiary country (see Presidential Proclamation 7351, dated October 2, 2000, 65 Fed. Reg. 59329) and has satisfied the second criterion (see 65 Fed. Reg. 60236, dated October 10, 2000). The provisions implementing the textile provisions of the CBTPA in the Harmonized Tariff Schedule of the United States (HTSUS) are contained, for the most part, in subchapter XX, Chapter 98, HTSUS (two provisions may be found in subheading 9802.00.80, HTSUS). The regulations pertinent to the textile provisions of the CBTPA may be found at §§10.221 through 10.228 of the Customs Regulations (19 CFR 10.221 through 10.228). We note that you referred to the instant fabric as "short supply fabric." The provision commonly referred to as the "short supply" provision is contained in subheading 9820.11.27, HTSUS. The determination of these short supply fabrics or yarns is made by the Committee for the Implementation of Textile Agreements (CITA). In the Federal Register, July 29, 2003, (Volume 68, Number 145, pp. 44528-44529) CITA published a determination as follows:
“The Committee for the Implementation of Textile Agreements (Committee) has determined that 100 percent cotton woven flannel fabrics, made from 21 through 36 NM single ring-spun yarns of different colors, classified in 5208.43.00 of the Harmonized Tariff Schedule of the United States (HTSUS), of 2 x 2 twill weave construction, weighing not more than 200 grams per square meter, for use in apparel articles excluding gloves, cannot be supplied by the domestic industry in commercial quantities in a timely manner. The Committee hereby designates apparel articles, excluding gloves, that are both cut and sewn or otherwise assembled in an eligible CBTPA beneficiary country, from these fabrics as eligible for quota-free and duty-free treatment under the textile and apparel commercial availability provisions of the CBTPA and eligible under HTSUS subheadings 9820.11.27 to enter free of quota and duties provided that all other fabrics are wholly formed in the United States from yarns wholly formed in the United States.”
Subheading 9820.11.27, HTSUS, provides as follows: “Articles imported from a designated beneficiary Caribbean Basin Trade Partnership country enumerated in general note 17(a) to the tariff schedule: Apparel articles both cut (or knit-to-shape) and sewn or otherwise assembled in one or more such countries from fabrics or yarn designated by the appropriate U.S. government authority in the Federal Register as fabrics or yarns not available in commercial quantities in the United States, under any terms as such authority may provide.” Since the foreign fabric used in this case to make the apparel articles is listed in Federal Register by an appropriate U.S. authority, the apparel articles are eligible for duty-free treatment under subheading 9820.11.27, HTSUS, provided they are cut and assembled in Nicaragua and they are imported directly to the U.S. from a CBTPA beneficiary country.
HOLDING: Assuming all the requirements of the subheading are satisfied, the apparel articles are classified under subheading 9820.11.27, HTSUS, and are eligible for duty free/quota free treatment provided they are imported directly into the customs territory of the U.S. from a CBTPA beneficiary country and all other documentary requirements are satisfied. A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise is entered. If the documents have been filed without a copy, this ruling should be brought to the attention of the Customs officer handling the transaction.
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 Camille R. Ferraro at 646-733-3046.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division