CLA-2-61:OT:RR:NC:TA:348
Davis Barlow
Kelly Global Logistics, Inc.
701 W. 20th Street
Hialeah, FL 33010
RE: The tariff classification and status under the Andean Trade Promotion and Drug Eradication Act (ATPDEA) of men’s jackets; from Colombia.
Dear Mr. Barlow:
In your letter dated March 11, 2010, on behalf of your client Supertex America, you requested a ruling on the status of men’s jacket under ATPDEA.
Style 36102FO is a men’s jacket that features a full front opening with a zipper closure; a zip-through stand-up collar; long, tapered sleeves; a zippered pocket on the left chest; zippered inset pockets below the waist; an embroidered logo on the left sleeve; a woven fabric label on the left chest; a woven nylon hanger loop at the rear neckline and a straight bottom.
The front and back panels, the sleeves, and the outer collar are constructed from a bonded fabric consisting of an inner and an outer layer of 100% polyester, finely knit, high loft pile fabric, with a middle layer of a polyurethane membrane. The under collar, the storm flap; the hem facing and the cuff facings are constructed from 100% polyester brushed tricot knit fabric. The inside of each front panel is lined with 100% polyester finely knit mesh fabric that also forms the inside of each pocket. The neckband seam is finished with 12mm stretch brushed neck tape.
The applicable subheading for Style 36102FO will be 6101.30.2010, Harmonized Tariff Schedule of the United States, (HTSUS), which provides for: men’s or boys’ overcoats, carcoats, capes, cloaks, anoraks (including ski-jackets), windbreakers, and similar articles, knitted or crocheted: other than those of heading 6103: of man-made fibers: other: other: men’s. The rate of duty is 28.2% 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 the World Wide Web at http://www.usitc.gov/tata/hts/.
The manufacturing operations for Style 36102FO are as follows:
The 100% polyester, finely knit, high loft pile fabric is manufactured in the U.S. from yarns extruded in the U.S.
The 100% polyester brushed tricot knit fabric for the storm flap and undercollar is manufactured in Canada from yarns extruded in the U.S.
The 100% polyester finely knit mesh fabric is manufactured in the U.S. from yarns extruded in the U.S.
In Colombia, the fabrics are cut, sewn and assembled into the finished garment.
Findings and Trimmings:
The woven fabric label is manufactured in China.
The hem facing and cuff facing is manufactured in Canada.
The 12mm stretch brushed neck tape is manufactured in France.
The embroidery thread and sewing thread are manufactured in Colombia.
The zipper pulls are manufactured in Taiwan.
The zipper and a slide chain is manufactured in U.S.
The nylon web for the hanger loop is manufactured in China.
The garment will be shipped directly from Colombia into the U.S. Colombia is an ATPDEA beneficiary country in accordance with U.S. note 1 to subchapter 9821.
ATPDEA, 9821.11.07, HTSUS, requires:
Apparel articles sewn or otherwise assembled in one or more such countries or the United States or both, exclusively from… fabrics or yarns, provided apparel of such fabrics or yarns would be considered an originating good under the terms of general note 12(t) to the tariff schedule without regard to the source of the fabric or yarn if such apparel article had been imported from the territory of Canada or the territory of Mexico directly into the customs territory of the United States.
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.
Chapter 61, Chapter rule 2 states in pertinent part:
For purposes of determining whether a good of this chapter is originating, the rule applicable to that good shall only apply to the component that determines the tariff classification of the good and such component must satisfy the tariff change requirements set out in the rule for that good.
The component that determines the classification of the good is the finely knit, high loft pile fabric.
For Style 36102FO, classified in subheading 6101, GN 12/61.1
A change to subheading 6101.10 through 6101.30 from any other chapter, except heading 5106 through 5113, 5204 through 5212, 5307 through 5308 or 5310 through 5311, chapter 54, or headings 5508 through 5516, or 6001 through 6006, provided that:
the good is both cut (or knit to shape) and sewn or otherwise assembled
in the territory of one or more of the NAFTA parties.
The visible lining fabric listed in chapter rule 1 for chapter 61 satisfies
the tariff change requirements provided therein.
Since the finely knit, high loft pile fabric is stated to be an originating material, it does not have to meet the terms of the tariff shift rule. The fabrics will be cut, sewn and assembled within the territory of one or more of the parties to the Agreement.
Since ATPDEA rule of origin references General Note 12(t) of the NAFTA rules, and based on the facts provided Style 36102FO qualifies for NAFTA preferential treatment, because it meets the requirements HTSUS General Note 12(b)(ii)(B)
However, ATPDEA, U.S. Note 4(a) states in pertinent part,
A textile or apparel article otherwise eligible for preferential treatment under the provisions 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.
For the purposes of subdivision 4(a)(i), 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), labels and other similar products.
Based on the information that you supplied and provided all requirements are met, Style 36102FO would be eligible for duty free treatment under subheading 9821.11.07, HTSUS.
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, contact National Import Specialist Mary Ryan at 646-733-3271. If you have any questions regarding the eligibility of preferential treatment under ATPDEA, contact National Import Specialist Rosemarie Hayward at 646-733-3064.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division