CLA-2-62:RR:NC:WA:361
Ms. Diane L. Weinberg
Meeks & Sheppard
Attorneys at Law
330 Madison Avenue, 39th Floor
New York, NY 10017
RE: The tariff classification and status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA), of a woman’s polo shirt from Nicaragua – correction to ruling M87455.
Dear Ms. Weinberg:
This replaces Ruling Number M87455, dated November 27, 2006, which contained a clerical error, an omission of the name of the company for on behalf of which the request was made. A complete corrected ruling follows.
In your letter dated October 27, 2006, you requested a ruling on the status of polo shirt from Nicaragua under DR-CAFTA on behalf of Clover Garments.
The submitted garment is a woman’s polo shirt constructed from 100 cotton knit fabric with more than ten stitches per centimeter in both the horizontal and vertical directions. The polo shirt has a spread collar, a partial placket opening with a two-button left-over-right closure, short sleeves with rib knit cuffs, and a hemmed bottom with side slits.
You have described the manufacturing process as follows:
Fabric for the body, sleeves and placket will be made in China or Mexico and exported to Nicaragua
Fabric will be cut in Nicaragua
Collar and cuffs will be knit to shape in Nicaragua from yarn produced in China
The polo shirts will be wholly assembled in Nicaragua
The polo player will be embroidered onto the garment using foreign embroidery thread.
Chapter 61, note 9 states, in part:
Garments of this chapter designed for left over right closure at the front shall be regarded as men's or boys' garments, and those designed for right over left closure at the front as a women's or girls' garments. These provisions do not apply where the cut of the garment clearly indicates that it is designed for one or other of the sexes.
As the shirt has a left over right front closure, the presumption is that it will be for men. However, it is clear based on the cut that it is a woman’s shirt, therefore, the shirt will be classified as a woman’s garment.
The applicable tariff provision for the shirt will be 6106.10.0010, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Women’s or girls’ blouses and shirts, knitted or crocheted: Of cotton: Women’s. The general rate of duty will be 19.7% ad valorem.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at http://www.usitc.gov/tata/hts/.
The shirt falls within textile category designation 339. With the exception of certain products of China, quota/visa requirements are no longer applicable for merchandise which is the product of World Trade Organization (WTO) member countries. The textile category number above applies to merchandise produced in non-WTO member-countries. Quota and visa requirements are the result of international agreements that are subject to frequent renegotiations and changes. To obtain the most current information on quota and visa requirements applicable to this merchandise, we suggest you check, close to the time of shipment, the “Textile Status Report for Absolute Quotas” which is available on our web site at www.cbp.gov. For current information regarding possible textile safeguard actions on goods from China and related issues, we refer you to the web site of the Office of Textiles and Apparel of the Department of Commerce at otexa.ita.doc.gov.
General Note 29(b), HTSUS, sets forth the criteria for determining whether a good is originating under DR-CAFTA. General Note 29(b), HTSUS, (19 U.S.C. § 1202) states, in pertinent part, that
For the purposes of this note, subject to the provisions of subdivisions (c), (d), (m) and (n) thereof, a good imported into the customs territory of the United States is eligible for treatment as an originating good under the terms of this note if--
(i) the good is a good wholly obtained or produced entirely in the territory of one or more of the parties to the agreement;
(ii) the good was produced entirely in the territory of one or more of the parties to the agreement, and--
(A) each of the non-originating materials used in the production of the good undergoes an applicable change in tariff classification specified in subdivision (n) of this note; or
(B) the good otherwise satisfies any applicable regional value content or other requirements specified in subdivision (n) of this note;
and the good satisfies all other applicable requirements of this note; or
(iii) the good was produced entirely in the territory of one or more of the parties to the Agreement exclusively from originating materials.
The merchandise does not qualify for preferential treatment under DR-CAFTA because (a) it will not be wholly obtained or produced entirely in the territory of one or more DR-CAFTA countries; (b) one or more of the non-originating materials used in the production of the goods will not undergo the change in tariff classification required by General Note 29(n)/61.25, HTSUS; and (c) it will not be produced entirely in the territory of one or more of the DR-CAFTA parties exclusively from originating materials.
The polo shirt may be subject to a reduced rate of duty based upon the temporary tariff provisions found in chapter 99, subchapter XV of the HTSUS.
U.S. Note 15 to that chapter states:
The rate of duty provided for in subheading 9915.61.01 in the "Special" subcolumn of rates of duty column 1 shall apply to goods of Nicaragua, in an aggregate quantity not to exceed the annual total quantity set forth in subdivision (c) of this note. Subheading 9915.61.01 applies to the cotton or man-made fiber apparel goods described in this note if the goods meet the applicable conditions for preferential tariff treatment under general note 29 to the tariff schedule, other than the condition that they be originating goods and are both cut or knit to shape, and sewn or otherwise assembled, in the territory of Nicaragua.
The apparel goods of cotton or of man-made fibers, or subject to cotton or man-made fiber restraints, enumerated herein and provided for in chapters 61 or 62 shall receive the tariff treatment set forth in subheading 9915.61.01. For purposes of this note, an apparel good must be classifiable in a tariff provision enumerated in the first column below and be described opposite such provision:
The polo shirt is cut and knit to shape, as well as sewn in Nicaragua and 6106 is one of the enumerated provisions. The shirt must also meet the General Note 29 requirements, other than the requirement that they originate. General Note 29(c)(iii) states, in pertinent part:
A good that has undergone production necessary to qualify as an originating good under this note shall not be considered to be an originating good if, subsequent to that production, the good—
undergoes further production or any other operation outside the
territories of the parties to the Agreement, other than unloading, reloading or any other operation necessary to preserve the good in good condition or to transport the good to the territory of a party to the Agreement;
Based on the information provided, there does not appear to be any additional processes outside of the territories of the DR-CAFTA parties, thus the shirt remains eligible under 9915.61.01 HTSUS.
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 Angela De Gaetano at 646-733-3052.
Should you wish to request an administrative review of this ruling, submit a copy of this ruling and all relevant facts and arguments within 30 days of the date of this letter, to the Director, Commercial Rulings Division, Headquarters, U.S. Customs and Border Protection, 1300 Pennsylvania Ave. N.W., (Mint Annex), Washington, D.C. 20229.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division