CLA-2-:OT:RR:NC:TA:348
Karen Quintana
NYK Logistics (Americas) Inc.
NVOCC and CHB Division
2417 E. Carson Street
Suite 200
Long Beach, CA 90810
RE: The tariff classification and the status under the African Growth and Opportunity Act (AGOA) for men’s shorts from Lesotho.
Dear Ms. Quintana:
In your letter dated July 27, 2009, on behalf of your client TSA Corporate Services Inc., you requested a ruling on the tariff classification and the status under AGOA for men’s knit shorts.
Styles 945s9admOi and 632NHM1 are men’s shorts constructed from 100% polyester, finely knit mesh fabric with a full lining of 100% polyester, warp knit fabric. Styles 945s9admOi and 632NHM1 fall above the knee and have a tunnel elastic waistband with an inside drawstring and hemmed leg openings. The drawstring on Style 945s9admOi is tipped at the edges and the drawstring on Style 632NHM1 is a continuous length and is knotted closed without tipping.
The applicable subheading for Styles 945s9admOi and 632NHM1 will be 6103.43.1550, Harmonized Tariff Schedule of the United States (HTSUS), which provides for men’s or boys’… trousers, …breeches and shorts (other than swimwear), knitted or crocheted: of synthetic fibers: trousers, breeches and shorts: other: shorts: men’s. The rate of duty is 28.2% ad valorem.
The manufacturing operations for Style 945s9admOi are as follows:
The polyester knit fabric for the outer shell and lining is manufactured in Taiwan.
The fabric for the elastic waistbands is manufactured in Taiwan. The rolls of fabric will be exported to Lesotho to be cut to length. The fabric will not be not be marked with lines or points of demarcation.
The fabric is cut, sewn and assembled into the finished garment in Lesotho.
The tip end drawstrings will be manufactured in Taiwan.
The sewing thread, used to assemble the components, is manufactured in Taiwan.
The garments are exported directly from Lesotho to the U.S.
The manufacturing operations for Style 632NHM1 are as follows:
The polyester knit fabric for the outer shell and lining is manufactured in Taiwan.
The braided fabric for the drawstrings will be manufactured in Taiwan. The rolls of braided fabric will be exported to Lesotho to be cut to length. The fabric will not be not be marked with lines or points of demarcation.
The fabric for the elastic waistbands is manufactured in Taiwan. The rolls of fabric will be exported to Lesotho to be cut to length. The fabric will not be not be marked with lines or points of demarcation.
The fabrics are cut, sewn and assembled into the finished garment in Lesotho.
The sewing thread, used to assemble the components, is manufactured in Taiwan.
The garments are exported directly from Lesotho to the U.S.
The provisions implementing the textile sections of AGOA in the HTSUS are contained in Subchapter XIX, Chapter 98, HTSUS. Apparel articles wholly assembled in a lesser developed sub-Saharan African beneficiary country and directly imported into the United States are entitled to duty free status, subject to certain restrictions. Such articles are entered under subheading 9819.11.12, HTSUS, which provides for:
Apparel articles wholly assembled, or knit to shape and wholly assembled, or both, in one or more lesser developed countries enumerated in U.S. Note 2(d) to this subchapter, and subject to the provisions of U.S. Note 2 to this subchapter, regardless of the country of origin of the fabric or the yarn used to make such articles, if entered during the period beginning on the date announced in a Federal Register Notice issued by the United States Trade Representative and continuing through September 30, 2004, inclusive.
U.S. Note 2(d), Subchapter XIX, HTSUS, lists the Kingdom of Lesotho as qualifying for designation as a lesser developed sub-Saharan African beneficiary country. Duty free status is granted to apparel articles wholly assembled in one or more lesser developed beneficiary countries regardless of the country of origin of the fabric used to make those articles. Further, eligibility for such status requires that the apparel article be "wholly assembled in" the lesser developed beneficiary sub-Saharan African country ". The term "wholly assembled" means that "all of the components of the textile or apparel article (including thread, decorative embellishments, buttons, zippers, or similar components) were joined together in one or more… lesser developed beneficiary countries." (Customs Regulations, C.R., Section 10.212).
The fabrics for styles 945s9admOi and 632NHM1 are being assembled in one of the lesser developed beneficiary sub-Saharan African countries.
U.S. Note 3(a), to Subchapter XIX, Chapter 98, provides, in relevant part, that :
An article otherwise eligible for preferential treatment under any provision of this subchapter shall not be ineligible for such treatment because the article contains—
findings or trimmings of foreign origin, if the value of such findings and trimmings does not exceed 25 percent of the cost of the components of the assembled article; or
Any of the following components that do not meet the requirements set forth in the provisions to this subchapter: any collars or cuffs (foregoing cut or knit-to-shape), drawstrings, shoulder pads or other padding, waistbands, belt attached to the article, straps containing elastic, or elbow patches.
U.S. Note 3(b), Subchapter XIX , Chapter 98, provides, that:
For purposes of subdivision (a)(i) above, findings or trimmings eligible under such subdivision include sewing thread, hooks and eyes, snaps, buttons, "bow buds", decorative lace trim, elastic strips, zippers (including zipper tapes) and labels and other similar products. Elastic strips are considered findings or trimmings only if they are each less than 2.54 cm in width and used in the production of brassieres.
The sewing thread from Taiwan is considered a finding or trimming and is allowable within the provisions of U.S. Notes 3(a)(i) and (b) of Chapter 98, subchapter XIX.
The tip end drawstrings from Taiwan are allowable within the provisions of U.S. Note 3(a)(iv) Chapter 98, subchapter XIX.
Based on the information you submitted, and provided all requirements are met, Styles 945s9admOi and 632NHM1 are eligible for duty free treatment under subheading 9819.11.12, HTSUS.
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 classification under subheading 6103.43.1550, contact National Import Specialist Mary Ryan at (646) 733-3271. If you have any questions regarding eligibility for preferential treatment under AGOA, contact National Import Specialist Rosemarie Hayward at (646) 733-3064.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division