CLA-2-61:RR:NC:WA:359 K84282
Mr. Kevin Maher
C Air Customhouse Brokers
181 South Franklin Avenue
Valley Stream, NY 11581
RE: Classification of Apparel Made from Fabric Commercially Unavailable in the U.S.; U.S. Caribbean Basin Trade Partnership Act; Subheading 9820.11.27, HTSUS;
Dear Mr. Maher:
This is in response to your letter dated March 1, 2004, requesting a binding ruling on the classification and eligibility of a woman’s garment made from certain cotton/rayon fabric for duty-free treatment under the United States-Caribbean Basin Trade Partnership Act (CBTPA). This request was made on behalf of Private Label Sourcing. You submitted a sample of the garment for our examination. The garment will be returned as you have requested. FACTS: The garment is a woman’s rib knit long sleeved pullover with hemmed sleeves and bottom and a slightly scooped neck. The neckline of the garment is edged in a satin trim fabric. You identified the garment as style S2978.
The fabric of the body of the garment submitted is stated to be made from 60% cotton and 40% rayon yarns. The cotton yarn is spun in the United States. The rayon yarn is a filament yarn extruded in Russia. In a telephone conversation you stated that the rayon yarn is cuprammonium rayon filament yarn. The trim fabric, 55% nylon and 45% spandex fibers, is formed in Korea. The body fabric is knit in Guatemala and the garment components are cut in Guatemala.
ISSUE: What is the tariff classification of this garment and is it eligible for preferential tariff treatment under the CBTPA?
CLASSIFICATION:
The applicable subheading for style S2978 will be 6110.20.2075, Harmonized Tariff Schedule of the United States (HTS), which provides for Sweaters, pullovers, sweatshirts, waistcoats (vests) and similar articles, knitted or crocheted: Of cotton: Other: Other: Women’s or girls’. The general rate of duty is 16.5% 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. Guatemala is designated as a CBTPA beneficiary country. 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).
The provisions in the CBTPA for textiles generally require that the yarn or fabric used in the assembly or formation of the apparel items originate in the United States. The exception to this requirement is if the apparel can meet the requirements under the terms of general note (t) to the tariff schedule without regard to the source of the fabric or yarn. This is generally referred to as the "NAFTA provision”, HTS 9820.11.24. As the cuprammonium yarn originates in Russia and is classified in Chapter 54, it serves to exclude the fabric from consideration under this provision. The only other alternate is that cuprammonium rayon is designated as a “short supply” yarn. However, the “short supply” provision, HTS 9820.11.27 still requires that the fabric be formed in the United States. In your letter you stated that the fabric is formed in Guatemala. Based upon this information, the woman’s garment is not eligible for treatment under the provisions of the CBTPA.
HOLDING: The garment is classified under subheading 6110.20.2075 HTSUS, and is subject to a duty rate of 16.5% ad valorem. The garment is not eligible for duty free/quota free treatment under the CBTPA. 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 Mike Crowley at 646-733-3049.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division