CLA-2-61:RR:NC:3:353
Sara Gradilla
R. L. Jones Customhouse Brokers, Inc.
444 Cezar Chavez St.
San Luis, AZ 85349
RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of bikini bottom from Mexico; Article 509
Dear Ms. Gradilla:
In your letter dated July 6, 2007, on behalf of AVI Acquisition dba Apparel Ventures, you requested a ruling on the status of a bikini bottom from Mexico under the NAFTA. The sample will be returned to you.
The submitted sample is a Style B42425B7 Bikini Bottom. The women’s high cut-style bikini bottom is composed of two components. The outer component is constructed of open work knit 85% polyester, 15% spandex fabric; the inner component is constructed of knit 81% polyester, 19% spandex fabric.
You state that Apparel Ventures exports cut pieces as well as rolls of fabric to Mexico where the cut pieces are assembled by sewing and the rolls of fabric are cut to shape and sewn to form swimwear. For purposes of this ruling we will assume that the cut pieces sent by Apparel Ventures to Mexico are cut to shape in the United States. The fabric for the outer component is made in a NAFTA country from NAFTA originating yarns; the fabric for the inner component is made in a non-NAFTA country from non-originating yarns. Both the inner and outer components are made of a fabric of heading 6002 or 6004.
You believe that the outer component imparts the essential character of the garment. However, the outer component is constructed of open work fabric and the inner component is clearly visible. The inner component provides an element of modesty that is critical to the garment, an element that the outer component does not provide. The inner component imparts the essential character of the garment.
The applicable tariff provision for the Style B42425B7 Bikini Bottom will be 6112.41.0010, Harmonized Tariff Schedule of the United States (HTSUS), which provides for women’s or girls’ swimwear: of synthetic fibers, of fabric containing by weight 5 percent or more elastomeric yarn or rubber thread: women’s. The general rate of duty will be 24.9% 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/.
Style B42425B7 falls within textile category 659. With the exception of certain products of China, quota/visa requirements are no longer applicable for merchandise which is the product of World Trade Organization (WTO) member countries. 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 12(b), HTSUS, sets forth the criteria for determining whether a good is originating under the NAFTA. General Note 12(b), HTSUS, (19 U.S.C. § 1202) states, in pertinent part, that
For the purposes of this note, goods imported into the customs territory of the United States are eligible for the tariff treatment and quantitative limitations set forth in the tariff schedule as "goods originating in the territory of a NAFTA party" only if--
(i) they are goods wholly obtained or produced entirely in the territory of Canada, Mexico and/or the United States; or
(ii) they have been transformed in the territory of Canada, Mexico and/or the United States so that--
(A) except as provided in subdivision (f) of this note, each of the non-originating materials used in the production of such goods undergoes a change in tariff classification described in subdivisions (r), (s) and (t) of this note or the rules set forth therein, or
(B) the goods otherwise satisfy the applicable requirements of subdivisions (r), (s) and (t) where no change in tariff classification is required, and the goods satisfy all other requirements of this note; or
(iii) they are goods produced entirely in the territory of Canada, Mexico and/or the United States exclusively from originating materials; or
(iv) they are produced entirely in the territory of Canada, Mexico and/or the United States but one or more of the nonoriginating materials falling under provisions for "parts" and used in the production of such goods does not undergo a change in tariff classification because--
(A) the goods were imported into the territory of Canada, Mexico and/or the United States in unassembled or disassembled form but were classified as assembled goods pursuant to general rule of interpretation 2(a), or
(B) the tariff headings for such goods provide for and specifically describe both the goods themselves and their parts and is not further divided into subheadings, or the subheadings for such goods provide for and specifically describe both the goods themselves and their parts,
provided that such goods do not fall under chapters 61 through 63, inclusive, of the tariff schedule, and provided further that the regional value content of such goods, determined in accordance with subdivision (c) of this note, is not less than 60 percent where the transaction value method is used, or is not less than 50 percent where the net cost method is used, and such goods satisfy all other applicable provisions of this note.
Chapter 61, Rule 2 found in General Note 12(t) states:
For purposes of determining the origin of a good of this Chapter, the rule applicable to that good shall only apply to the component that determines the tariff classification of the good and such component must satisfy the tariff change requirements set out in the rule for that good. If the rule requires that the good must also satisfy the tariff change requirements for visible lining fabrics listed in Note 1 to this Chapter, such requirement shall only apply to the visible lining fabric in the main body of the garment, excluding sleeves, which covers the largest surface area, and shall not apply to removable linings.(emphasis added)
For goods of subheading 6112.41, subdivision 12(t), Chapter 61, rule 38, applies. It states:
A change to subheadings 6112.30 through 6112.49 from any other chapter, except from headings 5106 through 5113, 5204 through 5212, 5307 through 5308 or 5310 through 5311, chapter 54 or headings 5508 through 5516 or 6001 through 6006, provided that the good is both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or more of the NAFTA parties.
The merchandise does not qualify for preferential treatment under the NAFTA because one or more of the non-originating materials (in this case the inner component) used in the production of the good will not undergo the change in tariff classification required by General Note 12(t)/61.38.
In addition, Style B42425B7 may be subject to a reduced rate of duty based upon the Tariff Preference Levels (TPL) established in Section XI, Additional U.S. Note 3 (b), up to the annual quantities specified in subdivision (g)(i)(A) of Note 3. Upon completion of the required documentation and up to the specified annual quantities, Style B42425B7 may be eligible for the preferential rate of Free.
This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 C.F.R. 181).
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 Kenneth Reidlinger at 646-733-3053.
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