CLA-2-64:OT:RR:NC:N4:447
Sandra Tovar
CST, Inc. 500 Lanier Avenue, W., Suite 901
Fayetteville, GA 30214
RE: The tariff classification of footwear produced in the Dominican Republic
Dear Ms. Tovar: In your electronic ruling request submitted on June 27, 2011 you requested a tariff classification ruling on behalf of Margarita International Trading (“Margarita Int’l.”) for three footwear styles assembled in the Dominican Republic from non-originating materials. Your request concerns the eligibility for preferential duty treatment for the footwear under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA). You describe all three styles as follows:
Style SP12BO is identified by you as a women’s tall sheepskin boot with an EVA rubber/plastic outer sole and a “twin face” sheepskin (leather) upper. You state that the sheepskin upper and the EVA outer sole are made in China and assembled in the Dominican Republic.
The applicable subheading for the women’s boot identified as style SP12BO will be 6403.91.9045, Harmonized Tariff Schedule of the United States (HTSUS), which provides for footwear with outer soles of rubber, plastics, leather or composition leather and uppers of leather: other footwear: covering the ankle: other: other: for other persons: other: for women: other. The general rate of duty will be 10% ad valorem.
Style SP12MO is identified by you as a men’s and women’s leather moccasin slipper with a rubber/plastic outer sole and either a pigskin or cow suede leather upper. The F.O.B. value is over $2.50/pair. You state that the leather upper, the sheepskin lining and the rubber outer sole are made in China and assembled in the Dominican Republic.
The applicable subheading for the men’s leather moccasin slipper identified as style SP12MO will be 6403.99.60, HTSUS, which provides for footwear with outer soles of rubber, plastics, leather or composition leather and uppers of leather: other footwear: footwear that does not cover the ankle; other: other: other: for men, youths and boys. The general rate of duty will be 8.5% ad valorem. The same style leather moccasin slipper for women will be classified under 6403.99.90, HTSUS. The general rate of duty will be 10% ad valorem.
Style SP12SA is identified by you as an outdoor performance sandal for men, women and children. The sandal has a rubber/plastic outer sole and a “webbed” textile upper with Velcro® straps. Although not mentioned in your letter, it is presumed that the Velcro® straps have either an external surface of textile material or that the upper is predominately textile. It is also presumed that the sandal has an open toe or an open heel. You state that the textile upper and the EVA footbed are stitched and formed in China, respectively, and assembled in the Dominican Republic.
The applicable subheading for the sandal identified as style SP12SA will be 6404.19.35, HTSUS, which provides for footwear with outer soles of rubber, plastics, leather or composition leather and uppers of textile materials: footwear with outer soles of rubber or plastics: other: footwear with open toes or open heels; footwear that is not less than 10 percent by weight of rubber or plastics. The general rate of duty will be 37.5% ad valorem. General Note (GN) 29 of the HTSUS contains the DR-CAFTA rules. GN 29(a), HTSUS, states, in relevant part: Goods for which entry is claimed under the terms of the Dominican Republic-Central America-United States Free Trade Agreement are subject to duty as set forth herein. For the purposes of this note -- originating goods or goods described in subdivision (a)(ii), subject to the provisions of subdivisions (b) through (n) of this note, that are imported into the customs territory of the United States and entered under a provision -- (A) in chapters 1 through 97 of the tariff schedule for which a rate of duty appears in the “Special” subcolumn of column 1 followed by the symbol “P” or “P+” in parentheses, or in chapter 98 or 99 of the tariff schedule where rate of duty or other treatment is specified, are eligible for the tariff treatment and quantitative limitations set forth therein in accordance with sections 201 through 203, inclusive, of the Dominican Republic-Central America-United States Free Trade Agreement Implementation Act (Pub. L. 109-53; 119 Stat. 462)[.] GN 29(b), HTSUS, sets forth criteria for determining whether a good (other than agricultural goods provided for in GN 29(a)(ii)) is an originating good for purposes of the DR-CAFTA. GN 29(b), HTSUS, states, in relevant part: 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 -- each of the non-originating materials used in the production of the good undergoes an applicable change in tariff classification specified in subdivision (n) of this note; or 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.
GN 29(n), to Chapter 64, HTSUS, (19 U.S.C. §1202) states in pertinent part that: Notwithstanding the tariff classification rules for goods of chapter 64 set forth below, with respect to goods of chapter 64 falling in the following tariff provisions enumerated in this rule for which a rate of duty followed by the symbol “P” in parentheses appears in the “Special” subcolumn rate of duty column 1, an importer may claim preferential treatment under this note for a good of chapter 64 that meets any tariff classification rule for such good set forth in general note 12, 17, 25, 26 or 28 of the tariff schedule: 1. A change to subheadings 6401.10 or 6401.91 or tariff items 6401.92.90, 6401.99.30, 6401.99.60, 6401.99.90, 6402.30.50, 6402.30.70, 6402.30.80, 6402.91.50, 6402.91.80, 6402.91.90, 6402.99.20, 6402.99.80, 6402.99.90, 6404.11.90 or 6404.19.20 from any other heading outside 6401 through 6405, except from subheading 6406.10, provided that there is a regional value content of not less than 55 percent under the build-up method. 2. A change to any other tariff item of chapter 64 from any other subheading. Regarding eligibility under the DR-CAFTA, on August 5, 2004, the governments of Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, and the United States signed the Dominican Republic-Central America-United States Free Trade Agreement (“Agreement”). The U.S. Congress approved the Agreement with the enactment on August 2, 2005, of the DR-CAFTA, Pub. L. 109-53, 119 Stat. 462 (19 U.S.C. 4001 et seq.). The Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua and the United States are currently parties to the Agreement.
Based on the submitted information, we find that the subject footwear qualifies for preferential (duty free) treatment under the DR-CAFTA. First, the classification of the goods resulted in a change [in classification] to a tariff item of Chapter 64 pursuant to Rule 2 of GN 29(n), to Chapter 64, HTSUS. Second, pursuant to GN 29 (n) to Chapter 64, HTSUS, goods of Chapter 64 falling in the tariff provisions enumerated in Rule 1 and Rule 2 for which a rate of duty followed by the symbol “P” appearing in the “Special” subcolumn, are eligible for preferential treatment. The subheadings at issue i.e. 6403.91.9045, 6403.99.60, 6403.99.90, and 6404.19.35, HTSUS, receive a “Special” rate of duty as indicated by the presence of the symbol “P” appearing in parentheses following the “Special” rate of duty subcolumn. 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 ruling, contact National Import Specialist, Stacey Kalkines at 646-733-3042. Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division