CLA-2-56:OT:RR:NC:N3:351
Alphonse Tshiboyi
Hanesbrands Inc.
1000 East Hanes Mill Road
Winston-Salem, NC 27105
RE: The tariff classification and status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA), of textile-covered rubber yarn from Honduras. Correction to Ruling Number N123399
Dear Mr. Tshiboyi:
This replaces Ruling Number N123399, dated Sept. 23, 2010, which contained a mistake of fact. Because the yarn in question contained rubber and not elastomeric man-made fibers, it is correctly classified in heading 5604, Harmonized Tariff Schedule of the United States (HTSUS), not heading 5606. The DR-CAFTA determination is not affected. A complete corrected ruling follows.
In your letter dated Sept. 13, 2010, you requested a ruling on the status of gimped rubber yarns from Sri Lanka under the DR-CAFTA.
You submitted a sample of a yarn called Sarla Conventional Double Covered Yarn, 49.7% rubber, 50.3% polyester. The rubber core is gimped by the polyester yarns in both the right- and left-handed directions (hence, “double covered”). The rubber is from Malaysia, the polyester is from India, and the yarn is manufactured in Honduras.
The applicable subheading for the textile covered rubber yarn will be 5604.10.0000, HTSUS, which provides for rubber thread and cord, textile covered. The rate of duty will be 6.3% 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/.
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 the DR-CAFTA because none of the above requirements are met.
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 Mitchel Bayer at (646) 733-3102.
Should you wish to request an administrative review of this ruling, submit a copy of this ruling and all relevant facts and arguments within 30 days of the date of this letter, to the Director, Commercial Rulings Division, U.S. Customs and Border Protection, Regulations & Rulings, 799 9th Street N.W. - 7th floor, Washington, DC 20229-1177.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division