CLA 2-OT:RR:E:NC:TAB:354
Mr. Walker McCrary
Acme-McCrary Corporation
159 North Street
P.O. Box 1287
RE: Status under the Andean Trade Promotion and Drug Eradication Act (ATPDEA) and Dominican Republic - Central America – United States Free Trade Agreement Implementation Act (DR-CAFTA) for hosiery.
Dear Mr. McCrary:
This is in reply to your letter dated April 11, 2007, requesting preferential treatment for hosiery which will be imported into the United States.
The subject merchandise consists of hosiery that you state will be knit to shape in Ecuador, sent to Honduras for assembly, finishing and packaging, and then imported into the United States. You state that the hosiery will fall under Harmonized Tariff Schedule of the United States (HTSUS) subheadings 6115.10.4000, 6115.10.5500, 6115.21.0010, 6115.21.0020 and 6115.30.9010. Your inquiry concerns the eligibility of this hosiery for preferential treatment under the ATPDEA and/or DR-CAFTA.
ELIGIBILITY UNDER THE ATPDEA:
The Trade and Development Act of 2002 ("the Act") was signed into law on August 6, 2002. Title XXXI of the Act concerns the renewal and expansion of the Andean Trade Preference Act (ATPA) and is entitled the "Andean Trade Promotion and Drug Eradication Act" (ATPDEA). The ATPDEA provides for the entry of specific textile and apparel articles free of duty and free of any quantitative restrictions, as well as other benefits to non-textile products. Presidential Proclamation 7616, dated October 31, 2002 and published in the Federal Register (67 FR 67283) on November 5, 2002, implemented the ATPDEA by designating the eligible beneficiary countries and amending Chapter 98, Harmonized Tariff Schedule of the United States (HTSUS) (including the creation of new subchapter XXI) to facilitate the entry of the specific textile and apparel articles eligible for preferential treatment under the ATPDEA.
The applicable Customs regulations for the ATPDEA are located at 19 CFR 10.201-10.207. Pursuant to these regulations, an article is eligible to receive duty-free treatment under the ATPDEA, if it is classified under a tariff provision for which a rate of duty of “Free” appears in the “Special” sub-column followed by the symbol “J” or “J*”.
In the special sub-column of the HTSUS for the subheadings you listed above, the symbol “J” does not appear. Therefore, the articles are not eligible to receive duty-free treatment under the ATPDEA.
In addition, the articles are not eligible for duty-free treatment under HTSUS Subchapter XXI, U.S. Note 1, as the articles will not be imported directly into the customs territory of the United States from a designated ATPDEA beneficiary country.
ELIGIBILITY UNDER 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 nonoriginating 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.
As the hosiery does not meet the requirements listed above for CAFTA, the hosiery is not eligible for preferential treatment under this trade agreement.
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 Deborah Marinucci at 646-733-3054.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division