CLA-2-61:OT:RR:NC:TA:361
Mr. Steven Chestler
Cathy Daniels Ltd.
1411 Broadway
New York, New York 10018
RE: The tariff classification and status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA) of women’s pants from Dominican Republic.
Dear Mr. Chestler:
In your letter dated July 9, 2009 you requested a ruling on the status of women’s pants from the Dominican Republic under the DR-CAFTA. We are returning your sample.
The sample provided, Style 9580, is a pair of women’s pants constructed from 63% staple polyester, 33% staple viscose rayon and 4% spandex woven fabric. The pull on pants feature an elasticized waistband, side pockets and hemmed leg openings.
The applicable subheading will be 6204.63.3510, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Trousers…woven: Of synthetic fibers: Trousers: Women’s. The duty rate will be 28.6% ad valorem.
The manufacturing operations are as follows:
The nonoriginating fabric is composed of 63% staple polyester, 33% staple viscose rayon and 4% spandex and is woven in China. The fabric will be classified as 5515.11.0090.
The nonoriginating fabric is cut and assembled into the finished garment in the Dominican Republic.
The sewing thread and elastic yarn used in the pants are formed and finished in the U.S.
The pants are then shipped directly from the Dominican Republic to the United States.
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.
The merchandise does not qualify for preferential treatment under DR-CAFTA because (a) it will not be wholly obtained or produced entirely in the territory of one or more DR-CAFTA countries; (b) one or more of the non-originating materials used in the production of the goods will not undergo the change in tariff classification required by General Note 29(n)/62.29, HTSUS; and (c) it will not be produced entirely in the territory of one or more of the DR-CAFTA parties exclusively from originating materials.
However, it may be subject to a reduced rate of duty classified under 9822.05.01.
General Note 29(m)(viii)(B) states:
An apparel good of chapter 61 or 62 of the tariff schedule and imported under heading 9822.05.01 of the tariff schedule shall be considered originating if it is cut or knit to shape, or both, and sewn or otherwise assembled in the territory of one or more of the parties to the Agreement, and if the fabric of the outer shell, exclusive of collars and cuffs where applicable, is wholly of—
(1) one or more fabrics listed in U.S. note 20 to subchapter XXII of chapter 98; or
(2) one or more fabrics formed in the territory of one or more of the parties to the Agreement from one or more of the yarns listed in U.S. note 20 to such subchapter XXII; or
(3) any combination of the fabrics referred to in subdivision (B)(1), the fabrics referred to in subdivision (B)(2) or one or more fabrics originating under this note.
The originating fabrics referred to in subdivision (B)(3) may contain up to 10 percent by weight of fibers or yarns that do not undergo an applicable change in tariff classification set out in subdivision (n) of this note. Any elastomeric yarn contained in a fabric referred
to in subdivision (B)(1), (B)(2) or (B)(3) must be formed in the territory of one or more of the parties of the agreement.
Chapter 98, subchapter XXII of the HTSUS U.S. Note 20(a) to that chapter states in pertinent part, that:
Heading 9822.05.01 shall apply to textile or apparel goods of chapters 50 through 63 and subheading 9404.90 that contain any of the fabrics, yarns or fibers set forth herein, are described in general note 29 to the tariff schedule and otherwise meet the requirements of such general note 29.
Within that note, (71) provides:
Any other fabric, yarn or fiber that the Committee for Implementation of Textile Agreements (CITA) determines in a notice published in the Federal Register (72CFR186) on or after March 1, 2006, is not available in commercial quantities in a timely manner in the territories of the parties to the Agreement, as defined in general note 29(a), subject to any quantitative limitations that CITA may establish for the fabric, yarn or fiber.
On September 19, 2007, a notice published by CITA in the Federal Register determined that certain woven fabrics, as specified below, are not available in commercial quantities in a timely manner in the CAFTA-DR countries. This product was added to the list in Annex 3.25 of the CAFTA-DR Agreement in unrestricted quantities.
HTSUS Classifications: 5515.11.00
Fiber Content: 50 to 77 percent polyester (except for fabrics comprising single yarns in the warp, the polyester content may be higher); 18 to 47 percent rayon; 3 to 8 percent spandex
Staple Length: 4.44 to 6.99 centimeters
Yarns: (three configurations):
Configuration #1: Warp and filling: plied polyester/rayon staple of various yarn sizes, combined with spandex filament of various deniers.
Configuration #2: Warp and filling: 34/1 metric or finer* polyester/rayon staple yarn, combined with spandex filament yarn of various deniers.
Configuration #3: Warp: 34/1 metric or finer* polyester/rayon staple, or plied polyester/rayon staple of various yarn sizes, combined with spandex filament of various deniers. Filling: singles or plied polyester filament of various yarn sizes, combined with spandex filament of various deniers.
NOTE: The designation "34/1 (English 20/1) or finer" describes a range of yarn specifications for yarn it its greige condition before dyeing and finishing of the yarn (if applicable) and before weaving, dyeing and finishing of the fabric. It is intended as a specification to be followed by the mill in sourcing yarn used to produce the fabric. Dyeing, finishing and weaving can alter the characteristic of the yarn as it appears in the finished fabric. This specification therefore includes yarns appearing in the finished fabric as coarser than 34/1 (English 20/1) provided that the coarser appearance occurs solely as the result of such processes.
Thread Count: 23 to 51 warp ends by 16 to 39 filling picks per centimeter
Weave Type: Various (including plain and twill)
Weight: 200 to 290 grams per square meter for fabrics comprising of single yarns in the
warp; 200 to 310 grams per square meter for fabrics comprising of plied yarns in
the warp
Width: 121 to 165 centimeters
Finish: Dyed and of yarns of different colors
Based on the information provided, the garment described above, does qualify for DR-CAFTA preferential treatment. The garments will therefore be entitled to a free rate of duty under the DR-CAFTA 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).
The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in 19 CFR 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in connection with the ruling request and incorporated therein, either directly, by reference, or by implication, is accurate and complete in every material respect. This ruling is being issued under the assumption that the subject goods, in their condition as imported into the United States, conform to the facts and the description as set forth both in the ruling request and in this ruling. In the event that the facts or merchandise are modified in any way, you should bring this to the attention of Customs and you should resubmit for a new ruling in accordance with 19 CFR 177.2. You should also be aware that the material facts described in the foregoing ruling may be subject to periodic verification by Customs.
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 regarding preferential status or National Import Specialist Peggy Fitzgerald at 646-733-3052 regarding the classification.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division