CLA-2-61:OT:RR:NC:WA:356
Mr. Joseph F. Barry III
CAF Worldwide Inc.
154-09 146th Avenue
Jamaica, NY 11434
RE: The tariff classification and eligibility under 9802.00.80, HTSUS, of men’s T-shirts from Mexico
In your letter dated April 13, 2012, you requested a tariff classification ruling on behalf of YS Garments DBA Next Level Apparel. Your request concerns the applicability of 9802.00.80, Harmonized Tariff Schedule of the United States, (HTSUS) to certain T-shirts that will be assembled in Mexico. As requested, your samples will be returned.
Style 3600 is a men’s all-white T-shirt constructed from 100% cotton, finely knit jersey fabric that weighs 145 grams per square meter. The garment has a 1x1 rib knit crew neckline; short, hemmed, set-in sleeves; self-fabric binding on the rear neckline and shoulder seams; and a straight, hemmed bottom.
Style 6210 is a men’s dyed T-shirt constructed from 60% cotton, 40% polyester, finely knit jersey fabric that weighs 145 grams per square meter. The garment has a 1x1 rib knit crew neckline; short, hemmed, set-in sleeves; self-fabric binding on the rear neckline and shoulder seams; and a straight, hemmed bottom.
Samples of the cut garment pieces as sent to Mexico and samples of the finished garments as returned to the United States were submitted with your inquiry. You state that the fabric will be knit and dyed in China and imported into the United States. In the United States, the fabric will be cut into component parts consisting of the front panel, the back panel, the sleeves, a strip of rib knit fabric for the collar, and a strip of jersey knit fabric that will be used for the neck and shoulder seam binding. The component parts will then be sent to Mexico for assembly into finished garments and the finished garments will be packaged and imported into the United States.
The applicable subheading for Style 3600 will be 6109.10.0004, HTSUS, which provides for T-shirts, singlets, tank tops, and similar garments, knitted or crocheted: of cotton: men’s or boys’: T-shirts all white, short hemmed sleeves, hemmed bottom, crew or round neckline, or V-neck with a mitered seam at the center of the V, without pockets, trim or embroidery. The duty rate will be 16.5% ad valorem.
The applicable subheading for Style 6210 will be 6109.10.0012, HTSUS, which provides for T-shirts, singlets, tank tops, and similar garments, knitted or crocheted: of cotton: men’s or boys’: other T-shirts: men’s. The duty rate will be 16.5% 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/.
Subheading 9802.00.80, HTSUS, provides for:
Articles, except goods of heading 9802.00.90 and goods imported under provisions of subchapter XIX of this chapter and goods imported under provisions of subchapter XX, assembled abroad in whole or in part of fabricated components, the product of the United States, which (a) were exported in condition ready for assembly without further fabrication, (b) have not lost their physical identity in such articles by change in form, shape or otherwise, and (c) have not been advanced in value or improved in condition abroad except by being assembled and except by operations incidental to the assembly process such as cleaning, lubricating and painting.
All three requirements of subheading 9802.00.80, HTSUS, must be satisfied before a component may receive a duty allowance. An article entered under this tariff provision is subject to duty upon the full appraised value of the imported assembled article, less the cost or value of the U.S. components assembled therein, upon compliance with the documentation requirements of section 10.24, Customs Regulations (19 CFR 10.24).
Section 10.14(a), Customs Regulations (19 CFR 10.14(a)), provides in part that the components must be in a condition ready for assembly without further fabrication at the time of their exportation from the U.S. to qualify for the exemption. Components will not lose their entitlement to the exemption by being subjected to operations incidental to the assembly either before, during, or after their assembly with other components.
Section 10.16(a), Customs Regulations (19 CFR 10.16(a)), provides that the assembly operation performed abroad may consist of any method used to join or fit together solid components, such as welding, soldering, riveting, force fitting, gluing, laminating, sewing, or the use of fasteners. Operations incidental to the assembly process are not considered further fabrication operations, as they are of a minor nature and cannot always be provided for in advance of the assembly operations. However, any significant process, operation or treatment whose primary purpose is the fabrication, completion, physical or chemical improvement of a component precludes the application of the exemption under HTSUS subheading 9802.00.80 to that component. See 19 CFR 10.16(c).
Section 10.25, Customs Regulations (19 CFR 10.25), provides that where a textile component is cut to shape (but not to length, width or both) in the United States from foreign fabric and exported to another country, territory, or insular possession for assembly into an article that is then returned to the United States and entered, or withdrawn from warehouse for consumption on or after July 1, 1996, the value of the textile component shall not be included in the dutiable value of the article.
In the instant situation, the front and back panels are cut to show the curve of the neckline and armhole openings and the sleeve components are cut to show the curve of the shoulder and armhole. These components are considered cut to shape and are eligible for the duty allowance. However, the rib knit fabric for the neckband and the jersey knit binding fabric for the neck and shoulder seams are cut to length and width to form rectangular shapes. These components are not considered cut to shape pursuant to 19 CFR 10.25. As such, they are not eligible for a duty allowance under HTSUS 9802.00.80.
Accordingly, the T-shirts, assembled in Mexico from component parts cut in the United States, may be eligible for a partial duty exemption under HTSUS heading 9802.00.8068. An article entered under this tariff provision is subject to duty upon the full value of the assembled article, less the cost or value of such U.S. components, upon compliance with the documentary requirements of section 10.24, Customs Regulations (19 CFR 10.24).
Although you requested classification under HTSUS 9802.00.8055, Additional U.S. Note 3 (c ) to Section XI states that this subdivision shall not apply after quantitative restrictions established pursuant to the Multifiber Arrangement or any successor agreement are terminated. The quantitative restrictions of the Multifiber Arrangement terminated on January 1, 2005.
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 Mary Ryan at 646-733-3271.
Sincerely,
Thomas J. Russo
Director
National Commodity Specialist Division