CLA-2-61:OT:RR:NC:WA:356
Mr. Tony Ferguson
Patagonia, Inc.
259 West Santa Clara Street
Ventura, CA 93001
RE: The status of certain fabrics used in the production of garments under the Caribbean Basin Trade Preference Act (CBTPA), the Andean Trade Promotion and Drug Eradication Act (ATPDEA), the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA), and the North American Free Trade Agreement (NAFTA).
Dear Mr. Ferguson:
In a letter dated January 2, 2008, and in subsequent information received on February 26, 2008, you requested a ruling on the status of certain fabrics under the CBTPA, ATPDEA, DR-CAFTA and NAFTA. The fabrics will be sourced in China and France and will be used in the production of knit jackets. You have provided a sample garment, samples of the fabrics in question, and photographs of the locations on the jackets where the fabrics will be used. As requested, your sample is being returned.
The submitted garment is a jacket constructed from 100% polyester, finely knit pile fabric that is brushed on the inside and outside surfaces. The garment has a stand-up collar, a full front opening with a windflap and a zipper closure, long sleeves with elasticized binding at the cuffs, a zippered pocket on the left chest, zippered pockets below the waist, and elasticized binding on the bottom edge with a drawcord and a cord lock.
The question presented is whether the use of the sample narrow woven fabrics in the construction of the garments would affect the eligibility of the garments under the above mentioned agreements. In previous rulings, Headquarters has defined “findings” as threads, tapes, buttons, bindings, hooks and eyes, slide fasteners, featherbone, belting, braids, and other sewing essentials used in garment making. “Trimming” has been defined as decoration or ornamental parts.
The component fabrics in question consist of the following:
Fabric No. 1 - Item (RM) #: 6010630024 – 94% polyamide, 6% elasthane “Stretch Herringbone Binding Tape”, 24 mm wide. This is used as a binding tape to cover and finish the bottom edge of the garment and the sleeve ends. The country of origin is France. The applicable subheading for Item (RM) #: 6010630024 is in 5806.20.0010, Harmonized Tariff Schedule of the United States, HTSUS, which provides for narrow woven fabrics, other than goods of heading 5807, other woven fabrics, containing by weight 5 percent or more of elastomeric yarn or rubber thread, containing elastomeric yarn.
Fabric No. 2 Item (RM) #: 6010620012 – 100% polyamide, “Brushed Neck Tape”, 12 mm wide. This is used to cover the rear inside neck seam where the collar and body panels are joined. The country of origin is France. The applicable subheading for Item (RM) #: 6010620012 is in 5806.32.1060, Harmonized Tariff Schedule of the United States, HTSUS, which provides for narrow woven fabrics, other than goods of heading 5807, other woven fabrics, of man-made fibers: ribbons: other: of a width not exceeding 12 cm: of nylon: with woven selvedge: other.
Fabric No. 3 Item (RM) #: 8006460012 – 100% polyester, “Striped Poly Webbing – JT356605”, ½ inch wide. This is used for zipper flap stabilization and windflap reinforcement. The country of origin is China. The applicable subheading for Item (RM) #: 8006460012 is in 5806.32.1030, Harmonized Tariff Schedule of the United States, HTSUS, which provides for narrow woven fabrics, other than goods of heading 5807, other woven fabrics, of man-made fibers: ribbons: other: of a width not exceeding 12 cm: of polyester: with woven selvedge: other.
Fabric No. 4 Item (RM) #: ½” Webbing – 100% nylon, “Nylon Webbing Tape”, ½ inch wide. This is used for zipper support, as neck tape, and to form the inside hanger loop. The country of origin is China. The applicable subheading for Item (RM) #: ½” Webbing is in 5806.32.1060, Harmonized Tariff Schedule of the United States, HTSUS, which provides for narrow woven fabrics, other than goods of heading 5807, other woven fabrics, of man-made fibers: ribbons: other: of a width not exceeding 12 cm: of nylon: with woven selvedge: other.
Fabric No. 5 Item (RM) #: ¾” Webbing – 100% nylon, “Nylon Webbing Tape”, ¾ inch wide. This is used for zipper support and stabilization. The country of origin is China. The applicable subheading for Item (RM) #: ¾” Webbing is in 5806.32.1060, Harmonized Tariff Schedule of the United States, HTSUS, which provides for narrow woven fabrics, other than goods of heading 5807, other woven fabrics, of man-made fibers: ribbons: other: of a width not exceeding 12 cm: of nylon: with woven selvedge: other.
Fabric No. 6 Item (RM) #: 1” Webbing – 100% nylon, “Nylon Webbing Tape”, 1 inch wide. You state that this is currently not used in apparel. The country of origin is China. As Item (RM) #: 1” Webbing is not currently used in wearing apparel, we will not address this item.
The applicable subheading for the sample garment, if for men, will be 6101.30.2010, HTSUS, which provides for: men’s . . . anoraks (including ski-jackets), windbreakers, and similar articles, knitted: of man-made fibers. The general rate of duty is 28.2% ad valorem.
The applicable subheading for the sample garment, if for women, will be 6102.30.2010, HTSUS, which provides for: women’s . . . anoraks (including ski-jackets), windbreakers, and similar articles, knitted: of man-made fibers: The general rate of duty is 28.2% 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 submitted sample will fall within textile category designation 634, if for men, and textile category designation 635, if for women. 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.
STATUS UNDER THE CARIBBEAN BASIN TRADE PREFERENCE ACT (CBTPA)
The provisions implementing the textile provisions of the CBTPA in the 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).
U.S. note 3 to subchapter XX, Chapter 98, states, in pertinent part:
3. (a) An article otherwise eligible for preferential treatment under any provision of this subchapter shall not be ineligible for such treatment because the article contains- (i) findings or trimmings of foreign origin, if the value of such findings and trimmings does not exceed 25 percent of the cost of the components of the assembled article; (b) For purposes of subdivision (a)(i) above, findings or trimmings eligible under such subdivision include sewing thread, hooks and eyes, snaps, buttons, "bow buds", decorative lace trim, elastic strips, and zippers (including zipper tapes) and labels and other similar products. Elastic strips are considered findings or trimmings only if they are each less than 2.54 cm in width and used in the production of brassieres.
Based on the stated uses of Fabrics 1, 2, 3, 4, and 5, the fabrics are considered findings or trimmings and the use of these non-originating materials for the purposes stated would not cause the garment to be ineligible for preferential treatment, provided that all the other requirements of Chapter 98, subchapter XX are met.
Status under the Andean Trade Promotion and Drug Eradication Act (ATPDEA)
The provisions implementing the textile provisions of the ATPDEA in the HTSUS are contained, for the most part, in subchapter XXI, Chapter 98, HTSUS (one provision may be found in subheading 9802.00.80, HTSUS). The regulations pertinent to the textile provisions of the ATPDEA may be found at §§ 10.241 through 10.248 of the Customs Regulations (19 CFR 10.241 through 10.248).
Subchapter XXI, U.S. Note 4(a)(i) states that a textile or apparel article otherwise eligible for preferential treatment under the provisions of subchapter XXI shall not be ineligible for such treatment if the article contains findings or trimmings of foreign origin if the value of such findings and trimmings does not exceed 25 percent of the cost of the components of the assembled article. Subchapter XXI, U.S. Note 4(b) further states that, for purposes of subdivision (a)(i) above, findings or trimmings eligible under such subdivision include sewing thread, hooks and eyes, snaps, buttons, "bow buds," decorative lace trim, elastic strips, zippers (including zipper tapes), labels and other similar products.
Based on the stated uses of Fabrics 1, 2, 3, 4, and 5, the fabrics are considered findings and trimmings and the use of these non-originating materials for the purposes stated would not cause the garment to be ineligible for preferential treatment, provided that all the other requirements of Chapter 98, subchapter XXI are met.
Status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA)
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.
For eligibility under DR-CAFTA, we also refer to General Note 29 (n), Chapter 61, Chapter rule 2 which states, in pertinent part, that: For purposes of determining whether a good of this chapter is originating, 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.
However, General Note 29, Chapter 61, Chapter rule 3, also states that: Notwithstanding chapter rule 2 to this chapter, a good of this chapter containing fabrics of subheading 5806.20 or heading 6002 shall be considered originating only if such fabrics are both formed from yarn and finished in the territory of one or more of the parties to the Agreement.
Therefore, since Fabric 1 is foreign fabric that is classified in subheading 5806.20, HTSUS, the use of this foreign fabric in garments classifiable in Chapter 61 would render the garments ineligible for DR-CAFTA preference.
For fabrics 2 through 5, since the eligibility of the garment is dependent on the component that determines the classification of the good, the stated uses of these non-originating fabrics in the construction of the garment would not render the garment ineligible for preferential treatment, provided that all other requirements are met.
Status under the North American Free Trade Agreement (NAFTA).
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
For eligibility under NAFTA, we also refer to General Note 12 (t), Chapter 61, Chapter rule 2, which states, in pertinent part, that: 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.
For fabrics 1 through 5, since the eligibility of the garment is dependent on the component that determines the classification of the good, the use of these non-originating fabrics in the construction of the garment would not render the garment ineligible for preferential treatment, provided that all other requirements are met.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177) and 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 Mary Ryan at 646-733-3271.
Sincerely,
Robert B. Swierupski
Director,
National Commodity Specialist Division