CLA 2-RR:NC:TA:355 K88559
Mr. Ralph Tramantano
Roytex, Inc.
16 East 34th Street
New York, NY 10016
RE: Classification and country of origin determination for men’s woven shirts; 19 CFR 102.21(c)(2); tariff shift; African Growth and Opportunity Act (AGOA), subheading 9819.11.21, HTSUSA
Dear Mr. Tramantano:
This is in reply to your letter dated August 16, 2004, requesting a classification and country of origin determination, and determination of eligibility under the AGOA for men’s woven shirts, which will be imported into the United States.
FACTS:
The subject merchandise consists of a man’s shirt made of 100% woven cotton fabric. The garment is identified as style 786717. The garment features a left over right full front opening with seven buttons; long sleeves with buttoned plackets and cuffs; a button down collar; a curved hemmed bottom; a right chest pocket; and the initial “H” embroidered on the bottom end of the front placket of the shirt.
The fabric for the shirt is woven in China. You state that the fabric is a yarn dyed 3/2 dobby twill constructed of 123 + 7x90, 40+80/2 x 80/2 with a fabric weight of 136 gm/sq.m (plus or minus 5%). Please note that we have based our conclusions regarding the fabric on the measurements given above, assuming the weight of the fabric to be without deviation from 136 gm/sq.m. and assuming that the 123 in the warp is the 40/1 yarn, the 7 in the warp is the 80/2 yarn, and the 90 in the filling is the 80/2 yarn. We also assume that these measurements are in inches.
The manufacturing operations for the shirt are as follows:
CHINA:
All fabric, interlining fabric, sewing thread, embroidery thread, buttons, and labels are sourced and shipped to Mauritius. The fabric is shipped in rolls without lines of demarcation.
MAURITIUS:
The fabrics, (both the shell fabric and interlining fabric), are cut into component parts, and the shirt is completely assembled in Mauritius, including the embroidery of the “H” onto the shirtfront.
You state that the findings, trimmings and interlinings do not exceed 25% of the costs of the assembled garment.
ISSUE:
What are the classification, country of origin, and eligibility under AGOA, of the subject merchandise?
CLASSIFICATION:
The applicable subheading for the shirt will be 6205.20.2050, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), 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: other: men’s. The general rate of duty will be 19.7% ad valorem.
The shirt falls within textile category designation 340. The designated textile and apparel categories and their quota and visa status are the result of international agreements that are subject to frequent renegotiations and changes. To obtain the most current information, we suggest that you check, close to the time of shipment, the Textile Status Report for Absolute Quotas, which is available at our Web site at www.cbp.gov. In addition, 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 and should also be verified at the time of shipment.
COUNTRY OF ORIGIN - LAW AND ANALYSIS:
Section 334 of the Uruguay Round Agreements Act (codified at 19 U.S.C. 3592), enacted on December 8, 1994, provided rules of origin for textiles and apparel entered, or withdrawn from warehouse for consumption, on and after July 1, 1996. Section 102.21, Customs Regulations (19 C.F.R. 102.21), published September 5, 1995, in the Federal Register, implements Section 334 (60 FR 46188). Section 334 of the URAA was amended by section 405 of the Trade and Development Act of 2000, enacted on May 18, 2000, and accordingly, section 102.21 was amended (68 Fed. Reg. 8711). Thus, the country of origin of a textile or apparel product shall be determined by the sequential application of the general rules set forth in paragraphs (c)(1) through (5) of Section 102.21.
Paragraph (c)(1) states, "The country of origin of a textile or apparel product is the single country, territory, or insular possession in which the good was wholly obtained or produced." As the subject merchandise is not wholly obtained or produced in a single country, territory or insular possession, paragraph (c)(1) of Section 102.21 is inapplicable.
Paragraph (c)(2) states that "Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1) of this section, the country of origin of the good is the single country, territory, or insular possession in which each of the foreign materials incorporated in that good underwent an applicable change in tariff classification, and/or met any other requirement, specified for the good in paragraph (e) of this section:"
Paragraph (e) in pertinent part states that "The following rules shall apply for purposes of determining the country of origin of a textile or apparel product under paragraph (c)(2) of this section":
HTSUS Tariff shift and/or other requirements
6201 – 6208 If the good consists of two or more component parts, a change to an assembled good of heading 6201 through 6208 from the unassembled components, provided that the change is the result of the good being wholly assembled in a single country, territory, or insular possession.
As the shirt is assembled in a single country, that is, Mauritius, as per the terms of the tariff shift requirement, country of origin is conferred in Mauritius.
THE AFRICAN GROWTH AND OPPORTUNITY ACT (AGOA):
The African Growth and Opportunity Act (AGOA) provides certain specified trade benefits for countries of sub-Saharan Africa. These benefits include duty-free treatment for certain non-textile articles previously excluded from preferential treatment under the Generalized System of Preferences, and duty- and quota-free treatment for certain textile and apparel articles which meet the requirements set forth in Section 112 of the Act (codified at 19 U.S.C. 3721). Beneficiary countries are designated by the President of the United States after having met eligibility requirements set forth in the AGOA. Once designated, a beneficiary country is entitled to the duty-free treatment for the designated non-textile articles determined not to be import-sensitive in the context of imports from the beneficiary sub-Saharan African countries.
A second designation 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 prevent unlawful transshipment and has adopted an effective visa system, is necessary before a beneficiary country may enjoy the duty- and quota-free benefits extended to textile and apparel articles under the Act.
Mauritius was designated a beneficiary country by Presidential Proclamation 7350, published in the Federal Register on March 12, 2002, 66 Fed. Reg. 14425. It was determined to be eligible for textile benefits under the AGOA by the USTR effective March 7, 2001. See, 66 Fed. Reg. 14425, dated March 12, 2001.
The provisions implementing the textile provisions of the AGOA in the Harmonized Tariff Schedule of the United States (HTSUS) are contained, for the most part, in subchapter XIX, Chapter 98, HTSUS (one provision may be found in subheading 9802.00.80, HTSUS). The regulations pertinent to the textile provisions of the AGOA may be found at §§ 10.211 through 10.217 of the Customs Regulations (19 CFR 10.211 through 10.217). Subheading 9819.11.21, HTSUS, is the provision commonly referred to as the "NAFTA short supply”” provision. It was created for the entry of articles eligible for preferential treatment under section 112(b)(5)(A) (see Presidential Proclamation 7350, dated October 2, 2000, published in the Federal Register on October 4, 2000 (65 Fed. Reg. 59327)). Subheading 9819.11.21, HTSUS, provides for the duty-free entry of:
Apparel articles both cut (or knit-to-shape) and sewn or otherwise assembled in one or more [beneficiary] countries from fabrics or yarn that is not formed in the United States or a beneficiary country, provided that such apparel articles of such fabrics or yarn would be considered an originating good under the terms of general note 12(t) to the tariff schedule without regard to the source of the fabric or yarn if such apparel article had been imported from the territory of Canada or the territory of Mexico directly into the customs territory of the United States……
Accordingly, if an apparel article is "of" a fabric that is considered to be a "short supply" fabric under GN12 (t), it is considered to be an originating good providing it meets the other applicable requirements of GN 12(t). General Note 12 (t), Chapter 62, Subheading Rule to Part 29, HTSUSA, provides that apparel goods of this chapter shall be considered to originate if they are both cut and sewn or otherwise assembled in the territory of one or more of the NAFTA parties and if the fabric of the outer shell, exclusive of collars or cuffs, is wholly of one or more of the following:
(f) Fabrics of subheadings 5208.42 or 5208.49, not of square construction, containing more than 85 warp ands and filling picks per square centimeter, of average yarn number exceeding 85 metric;
According to the information you have supplied, the fabric at issue is a fabric of subheading 5208.49, HTSUS, is not of square construction, contains more than 85 warp ends and filling picks per square centimeter and is of an average yarn number exceeding 85 metric. Accordingly, the fabric used to produce the shirt is considered a short supply fabric and the shirt is eligible for preferential treatment under the AGOA.
HOLDING:
The country of origin of the shirt is Mauritius. The goods are eligible for the preferential duty rate of “Free” under AGOA. Under AGOA, the Visa Group for this merchandise is 8 and the Preference Group is “H”.
The holding set forth above applies only to the specific factual situation and merchandise identified in the ruling request. This position is clearly set forth in section 19 CFR 177.9(b)(1). This section states that a ruling letter, either directly, by reference, or by implication, is accurate and complete in every material respect.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177). Should it be subsequently determined that the information furnished is not complete and does not comply with 19 CFR 177.9(b)(1), the ruling will be subject to modification or revocation. In the event there is a change in the facts previously furnished, this may affect the determination of country of origin. Accordingly, if there is any change in the facts submitted to Customs, it is recommended that a new ruling request be submitted in accordance with 19 CFR 177.2.
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 646-733-3049.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division