CLA-2-98:OT:RR:NC:TA:352
Odysseus Demetriadi
Mind Candy, Inc. dba Jellywear Mfg.
7162 Beverly Blvd. Ste 318
Los Angeles, CA 90036
RE: Eligibility for partial duty exemption of greige knit fabric from India and yarn from Malaysia or Indonesia, imported into the United States then sent to Mexico for processing
Dear Mr. Demetriadi:
In your undated letter, received in this office on July 20, 2009, you requested a ruling regarding partial duty exemptions for greige knit fabric from India and yarn from Malaysia or Indonesia. You propose to import these goods into the United States for processing, and then export the goods to Mexico for further processing. You present four scenarios and one additional question for consideration.
SCENARIO 1:
You ask whether greige fabric imported from India, printed and/or dyed in the United States, and then exported to Mexico would qualify for Temporary Importation under Bond (TIB) under HTS 9813.00.05. We are unable to rule on this scenario. This question should be addressed to U.S. Customs and Border Protection, Regulations & Rulings, 799 9th Street N.W. - 7th floor, Washington, DC 20229-1177.
SCENARIO 2:
You ask whether drawback can be claimed for greige fabric which has been imported from India, printed and/or dyed in the United States, and then exported to Mexico, where it will be cut and sewn into garments. We are unable to rule on this scenario. This question should be addressed to U.S. Customs and Border Protection, Regulations & Rulings, 799 9th Street N.W. - 7th floor, Washington, DC 20229-1177.
SCENARIO 3:
You ask whether greige fabric which has been imported from India, printed and/or dyed and cut to shape in the United States, and then exported to Mexico where the cut pieces will be sewn into garments to be imported back into the United States, would be eligible for entry under HTS 9802.00.90.
Subheading 9802.00.90, Harmonized Tariff Schedule of the United States (HTSUS), provides for
textile and apparel goods, assembled in Mexico in which all fabric components were wholly formed and cut in the United States, provided that such fabric components, in whole or in part, (a) were exported in condition ready for assembly without further fabrication, (b) have not lost their physical identity in such articles by change in form, shape or otherwise, and (c) have not been advanced in value or improved in condition abroad except by being assembled and except by operations incidental to the assembly process; provided that goods classifiable in chapters 61, 62 or 63 may have been subject to bleaching, garment dyeing, stone-washing, acid-washing or perma-pressing after assembly as provided for herein.
As you have indicated that the fabric was knitted in India, the fabric components have not been “wholly formed” in the United States. Therefore, the goods processed as described in Scenario 3 would not be eligible for entry under subheading 9802.00.90, Harmonized Tariff Schedule of the United States (HTSUS).
SCENARIO 4:
You ask whether yarn, imported duty-paid from Malaysia or Indonesia, knit into fabric and dyed and/or printed in the United States, exported to Mexico under the Maquiladora Program to be cut and sewn into garments, and then imported back into the United States, would be eligible for entry under HTS 9801.00.50.
Subheading 9801.00.50, Harmonized Tariff Schedule of the United States (HTSUS), provides for articles, when returned after having been exported for use temporarily abroad solely for any of the following purposes, if imported by or for the account of the person who exported them: […] Exhibition in connection with any circus or menagerie.
As the facts in the ruling request do not conform to the requirements stated above, goods processed as described in Scenario 4 would not be eligible for entry under subheading 9801.00.50, Harmonized Tariff Schedule of the United States (HTSUS). Nor are we aware, given the facts that you present, of any provision that would satisfy the situation as described in Scenario 4.
TARIFF PREFERENCE LEVELS:
You have asked about Tariff Preference Levels (TPL) under NAFTA. Tariff Preference Levels are administered like tariff rate quotas. Tariff rate quotas permit a specified quantity of imported merchandise to be entered at a reduced rate of duty during the quota period. Once the tariff-rate quota limit is reached, goods may still be entered, but at a higher rate of duty. To check the status of a Tariff Preference Level (TPL) quota, contact your local service port of entry or go to:
http://www.cbp.gov/xp/cgov/trade/trade_programs/textiles_and_quotas/commodity/
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 Maribeth Dunajski at (646) 733-3045.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division