CLA-2-61:OT:RR:NC:TA:348
Ricky E. Villena
HLM Cargo Clearance Brokers, Inc.
8355 NW 74 Street
Miami, Florida 33166
RE: The tariff classification and status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA) of women’s sleeveless pullover from El Salvador.
Dear Mr. Villena:
In your letter dated December 17, 2008 on behalf of your client, Sweet Pea Limited Inc., you requested a ruling on the status of women’s sleeveless pullover from El Salvador under the DR-CAFTA.
Style 5536 is a “sweet pea® by stacy frati” label women’s sleeveless pullover constructed from 100% viscose finely knitted fabric. The outer surface of the garment measures more than nine stitches per two centimeters in the direction in which the stitches were formed. The cut and sewn garment features a rounded front neckline, elasticized gatherings at the shoulder seams and side seams, and a straight hemmed garment bottom. The garment extends to below the waist.
The applicable subheading for the garment will be 6110.30.3059, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Sweaters, pullovers, sweatshirts, waistcoats (vests) and similar articles, knitted: Of man-made fibers: Other: Other: Other: Women’s or girls’: Other. The duty rate will be 32% ad valorem.
The manufacturing operations are as follows:
The solution dyed micro denier open-end staple viscose rayon fiber is spun into 30/1 yarns in Spain.
The non-originating yarns are shipped from Spain to the U.S. In the U.S., the yarns are knit into fabric.
The fabric is shipped to El Salvador and is cut, sewn and assembled into the finished garment.
The sewing thread used to assemble the garment is manufactured in U.S.
The garment labels, ribbon hanger loops and clear elastomeric plastic strips are manufactured in the U.S.
The shoulder and side seams are manufactured in El Salvador.
The garment is shipped directly from El Salvador 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)/61.25, 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. You have suggested that the garment 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
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 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 March 5, 2004, a notice published by CITA in the Federal Register determined that certain micro-denier open-end spun staple viscose yarn, as specified below, are not available in commercial quantities in a timely manner. This product was added to the list in Annex 3.25 Section 4(e) of the CAFTA-DR Agreement in unrestricted quantities.
Certain micro-denier open-end spun staple viscose yarn (30 singles and 36 singles solution dyed), classified in HTSUS subheading 5510.11.0000.
Based on the facts provided, the garment described may qualify for DR-CAFTA preferential treatment because garment meets the requirements of HTSUS General Note 29(m)(viii)(B)(1).
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, contact National Import Specialist Francine Vivona-Brock at (646) 733-3049. If you have any questions regarding eligibility for preferential treatment under DR-CAFTA, contact National Import Specialist Rosemarie Hayward at (646) 733-3064.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division