CLA-2-61:OT:RR:NC:3:348
Lisias Ransan
Varnam Inc. (DBA: So Danca)
320 S. Military Trail
Deerfield Beach, FL 33442
RE: The tariff classification and status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA), of a woman’s cardigan from Dominican Republic.
Dear Mr. Ransan:
In your letter dated June 6, 2009, you requested a ruling on the status of a woman’s cardigan under the DR-CAFTA.
The submitted garment, Style D 258, is a woman’s cardigan constructed of a lightweight 81% rayon 19 % spandex finely knit fabric. The outer surface of the fabric measures more than 9 stitches per 2 centimeters in the direction that the stitches were formed. The garment features a mock collar with a zippered full front opening, two inset pockets at either side of the lower front panel, long sleeves with self fabric cuffs and a self-fabric banded bottom. The garment extends to below the waist. The sample is being returned as requested.
The applicable subheading for style D 258 will be 6110.30.3059, 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: Other: Other: Women’s or girls’: Other. The duty rate will be 32% 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 manufacturing operations for this garment are as follows:
The rayon/spandex knit fabric, for the body of the garment and pockets, is manufactured in the U.S. from U.S. yarns.
The fabric is cut, sewn and assembled into the finished garment in Dominican Republic.
The sewing thread, used to assemble the components, is formed in the Dominican Republic.
The zipper is manufactured in China.
The garment is exported directly from Dominican Republic to the U.S.
General Note 29, HTSUS, sets forth the criteria for determining whether a good is originating under the 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.
General Note 29 (n), Chapter 61, Chapter rule 4 states:
Notwithstanding chapter rule 2 to this chapter, a good of this chapter containing sewing thread of headings 5204, 5401 and 5508 shall be considered originating only if such sewing thread is both formed from yarns and finished in the territory of one or more of the parties to the Agreement.
The sewing thread used to assemble the garment will be formed and finished in one or more of the parties to the Agreement.
General Note 29 (n), Chapter 61, Chapter rule 5, provides, in pertinent part:
Notwithstanding chapter rule 2 to this chapter, a good of this chapter, that contains a pocket or pockets shall be considered originating only if the pocket bag fabric has been formed and finished in the territory of one or more to the parties to the Agreement from yarn wholly formed in the territory of one or more of the parties to the Agreement.
The pocket bag fabric will be formed and finished in one or more of the parties to the Agreement from yarn wholly formed in the territory of one of more of the parties to the Agreement.
For goods classified in heading 6110, General Note 29/61.25 requires:
A change to headings 6105 through 6111 from any other chapter, except from headings 5111 through 5113, 5204 and 5212, 5310 through 5311, chapter 54, headings 5508 through 5516 or 6001 through 6006, provided that the good is cut or knit to shape or both, and sewn or otherwise assembled in the territory of one or more of the parties.
The non-originating material used in the production of the garment is the zipper. Since the zipper is classified in chapter 96, it meets the terms of the tariff shift rule. Based on the facts provided, Style D 258 qualifies for DR-CAFTA preferential treatment, because it meets the requirements of HTSUS General Note 29(b)(ii)(A). The merchandise will therefore be entitled to a free rate of duty under the DR-CAFTA upon compliance with all applicable laws, regulations, and agreements.
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