CLA-2-61:OT:RR:NC:TA:348
Nikki Adams
Fruit of the Loom
1 Fruit of the Loom Drive
P.O. Box 90015
Bowling Green, KY 42102
RE: Classification and country of origin determination for a ladies sweatshirt; 19 CFR 102.21(c)(2); tariff shift; the status under the North American Free Trade Agreement (NAFTA); Article 509.
Dear Ms. Adams:
In your letter dated May 9, 2008, you requested a ruling on the status of ladies sweatshirt under the NAFTA.
You have indicated that the sample garment provided is not made from the proposed fabric; the garment is representative only of the style that may be produced with the proposed fabric. The style numbers provided are for the Russell Corporation (owned by Fruit of the Loom) along with a corresponding Fruit of the Loom style number. The garment could be imported under either style number.
The submitted style 562W or 562WR is a woman’s sweatshirt made of a 50% cotton 50% polyester knit fabric that is napped on the inside. You have indicated, however, that the garment to be produced will be made of a 40% cotton 60% polyester knit fabric that is napped on the inside. The outer surface of the sample garment measures more than nine stitches per two centimeters in the horizontal direction. The sample garment features a round neckline, long sleeves with ribbed knit cuffs and a ribbed knit banded bottom.
The yarn that will be used to make the cloth is from 40% U.S. grown cotton, 40% polyester staple fibers produced in the U.S. and 20% black polyester staples fibers from a non-NAFTA country. The manufacturing operations for this garment are as follows:
In U.S., the cotton and polyester fibers are blended. The fibers are carded and drawn, then spun into yarn.
The spun yarn is wound onto a cylindrical or conical package and the packages are shipment to a fabric manufacturer in the U.S.
After the fabric has been knitted, it is than shipped to a NAFTA country to be cut into the finished good and packaged for export to the U.S.
The applicable tariff provision for style 562W or 562WR will be 6110.30.3045 Harmonized Tariff Schedule of the United States (HTSUS), which provides for sweaters, pullovers, sweatshirts, waistcoats (vests) and similar articles, knitted or crocheted, of man-made fibers, other, other, other, sweatshirts, women’s or girls”. The general rate of duty will be 32 percent.
The garment falls within textile category 639. With the exception of certain products of China, quota/visa requirements are no longer applicable for merchandise which is the product of World Trade Organization (WTO) member countries.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.
For goods classified in heading 6110, General Note 12/61.35 requires:
A change to headings 6109 through 6111 from any other chapter, except from headings 5106 through 5113, 5204 through 5212, 5307 through 5308 or 5310 through 5311, chapter 54, headings 5508 through 5516 or 6001 through 6006, provided that the good is both cut or sewn or otherwise assembled in the territory of one or more of the NAFTA parties.
The non-originating material is the black polyester staple fiber and would be classified in heading 5503. Those fibers are transformed within the DR-CAFTA territories into yarn then into fabric and finally into the sweatshirt.
Based on the facts provided, style 562W or 562WR, qualifies for NAFTA preferential treatment, because it meets the requirements HTSUS General Note 12(b)(ii)(A). The merchandise will therefore be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements.
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/.
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 Rosemarie Hayward at 646-733-3064.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division