CLA-2-62 OT:RR:NC:N3:353
Ms. Jo Bronson Harris
Sandler, Travis & Rosenberg, P.A.
1000 NW 57th Court
Suite 600
Miami, FL 33126
RE: The tariff classification and status under the Haitian Hemispheric Opportunity through Partnership Encouragement Act of 2008 (HOPE II) of textile articles from Haiti.
Dear Ms. Harris:
This is in response to your letter dated May 21, 2012, on behalf of your client, Simbi, Inc., regarding the classification and marking of a clothing accessory and drawstring bag.
The submitted sample, which was identified as a ponytail holder/bracelet, is comprised of woven polyester elasticized fabric. The textile item measures approximately ½ inch in width and has sewn together ends. You state that the articles will be marketed and sold both as ponytail holders and bracelets. GRI 3 (a) states in part, that when goods are prima facie, classifiable in two or more headings, “the heading which provides the most specific description shall be preferred to headings providing a more general description.” In this case, the term “ponytail holder” is more specific than “other clothing accessories”.
You have inquired about two marking scenarios. In the first, the ponytail holders will be sold individually at retail stores from a display box that will state “Made in Haiti” in the lower right hand corner. In the second scenario, the ponytail holders will be sold at retail, in sets of six or twelve, in small drawstring bags. There is no retail packaging for the ponytail holders. Samples of both the drawstring bags and the display box were included with this ruling request.
The ponytail holders and drawstring bags are not considered to be a set for tariff classification purposes since the items are not put up together to meet a particular need or carry out a specific activity. The drawstring bag is not considered normal packaging and has independent utilitarian use. The small drawstring bags are made from 100% cotton woven fabric. The bags may be screen printed or embroidered with the Simbi logo. They are cut and sewn in Haiti from fabric imported from the United States or other countries. The drawstring cord is threaded through the sewn tunnel and knotted. They are of a durable construction and suitable for repetitive use. Therefore the ponytail holders and the drawstring bags must be classified separately.
The marking statute, section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless excepted, every article of foreign origin (or its container) imported into the U.S. shall be marked in a conspicuous place as legibly, indelibly and permanently as the nature of the article (or its container) will permit, in such a manner as to indicate to the ultimate purchaser in the U.S. the English name of the country of origin of the article. As provided in section 134.41(b), Customs Regulations (19 CFR 134.41(b)), the country of origin marking is considered conspicuous if the ultimate purchaser in the U.S. is able to find the marking easily and read it without strain.
With regard to the permanency of marking, section 134.41(a), Customs Regulations (19 CFR 134.41(a)), provides that as a general rule marking requirements are best met by marking worked into the article at the time of manufacture. For example, it is suggested that the country of origin on metal articles be die sunk, molded in, or etched. However, section 134.44, Customs Regulations (19 CFR 134.44), generally provides that any marking that is sufficiently permanent so that it will remain on the article until it reaches the ultimate purchaser unless deliberately removed is acceptable.
With regard to the first scenario, the ponytail holders must be individually marked at the time of importation with their country of origin. With regard to the second scenario, both the ponytail holders and the drawstring bags must be marked with country of origin.
The applicable subheading for the ponytail holder will be 6217.10.8500, Harmonized Tariff Schedule of the United States (HTSUS), which provides for "Other made up clothing accessories…Headbands, ponytail holders and similar articles." The rate of duty will be 14.6 percent ad valorem.
The applicable subheading for the cotton bags will be 4202.92.6091, Harmonized Tariff Schedule of the United States (HTSUS), which provides in part, for "Other bags and containers, of cotton, other." The rate of duty will be 6.3 percent ad valorem.
Your request also concerns the eligibility for preferential duty treatment of these products under the Haitian Hemispheric Opportunity through Partnership Encouragement Act of 2008 (HOPE II). The applicable subheading to determine eligibility for the ponytail holders under HOPE II would be 9820.62.05, HTSUS, which provides for:
Apparel articles of chapter 62 to the tariff schedule, under the terms of U.S. note 6(h) to this subchapter and imported directly from Haiti or the Dominican Republic during an applicable 1-year period specified in U.S. Note 6(h)(ii) to this subchapter, subject to the limitations provided in such U.S. note 6(h)(ii).
You have provided the following scenarios regarding the ponytail holders:
In scenario one, fabric from China will be shipped to Haiti. There, the fabric will be cut-to-shape, hand knotted and the ends stitched together. Any remaining fabric will be cut off the tip. The article will be exported to the United States directly from Haiti.
In scenario two, fabric from China will be shipped to Haiti. There the fabric will be cut-to-shape and a label will be stitched around the fabric strip. The item will then be hand knotted and the ends stitched together. Any remaining fabric will be cut off the tip. The article will be exported to the United States directly from Haiti.
U.S. Note 6(h), Subchapter XX, Chapter 98, HTSUS, provides as follows:
Apparel articles classifiable under Chapter 62 of the tariff schedule that are wholly assembled, or knit to shape in Haiti from any combination of fabrics, fabric components, components knit-to-shape or yarns and are imported directly from Haiti or the Dominican Republic, subject to subdivisions (h)(ii), (h)(iii) of this note, without regard to source of the fabric, fabric components, components knit-to-shape or yarns from which the article is made.
The Customs and Border Protection Regulations implementing the Haitian Hemispheric Opportunity through Partnership Encouragement Act of 2006 (Haiti HOPE I), as amended by the Haitian Hemispheric Opportunity through Partnership Encouragement Act of 2008 (Haiti Hope II) are set forth in Volume 19 of the Code of Federal Regulations (CFR) at Part 10, Subpart O, §§ 10.841 through 10.850.
Section 10.842(a) (19 CFR § 10.842(a)) defines “apparel articles” as “goods classifiable in Chapters 61 and 62 and headings 6501, 6502, 6503, and 6504 and subheadings 6406.99.15 and 6506.90 of the HTSUS.” The classification for the ponytail holders under heading 6217, HTSUS, clearly fall within the definition of “apparel articles” and thus are eligible for preferential tariff treatment under the Haiti Hope Acts and the provisions implementing those Acts in the tariff schedule.
Based upon the classification of the article and the manufacturing scenarios described above, and that the items are being imported directly from Haiti, the applicable subheading would be 9820.62.05, HTSUS, subject to the quantitative limitations set forth in U.S. Note 6(h), Subheading XX, Chapter 98, HTSUS.
Your request also concerns the eligibility for preferential duty treatment of these products under the Haitian Hemispheric Opportunity through Partnership Encouragement Act of 2008 (HOPE II). The applicable subheading to determine eligibility for the cotton bags under HOPE II would be 9820.42.05, HTSUS, which provides for:
Articles of heading 4202 described in U.S. note 6(l) to this subchapter and imported directly from Haiti or the Dominican Republic.
U.S. Note 6(l), Subchapter XX, Chapter 98, HTSUS, provides as follows:
The preferential tariff treatment provided in heading 9820.42.05 shall be extended to any article classifiable under subheading 4202.12, 4202.22, 4202.32 or 4202.92 of the tariff schedule that is wholly assembled in Haiti and is imported directly from Haiti or the Dominican Republic, without regard to the source of the fabric, fabric components, components knit-to-shape or yarns from which the article is made.
The note indicates that the source of the fabric and materials from which the cotton bags are made is of no consequence provided the bags are wholly assembled in Haiti. The cotton bags qualify for preferential treatment in subheading 9820.42.05, HTSUS, provided that they are imported directly from Haiti or the Dominican Republic, and subject to the quantitative limitations set forth in U.S. Note 6(l), Subheading XX, Chapter 98, HTSUS.
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 of the article under heading 6217, HTSUS, contact National Import Specialist Kimberly Praino at (646) 733-3053. If you have any questions regarding the classification of the article under heading 4202, HTSUS, contact National Import Specialist Vikki Lazaro at (646) 733-3041.
Sincerely,
Thomas J. Russo
Director
National Commodity Specialist Division