CLA-2-61:OT:RR:NC:3:358
Ms. Emilia Arroyo
Jerry Leigh
7860 Nelson Road
Van Nuys, CA 91402
RE: The tariff classification and status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA), of a girl’s pullover from Guatemala.
Dear Ms. Arroyo:
In your letter dated June 25, 2012, you requested a ruling on the status of a girl’s knitted pullover from Guatemala under the DR-CAFTA and the applicability of subheading 9822.05.10.
The submitted sample, Style JT1794, has short set-in sleeves, a round neckline, rib knit capping at the neckline and armhole openings and a hemmed bottom. The garment has an all-over screen print design. The front panel also has flower shape sparkle applications in various sizes. According to your submission, the sparkle applications are derived from “sublimation paper made in U.S.” The pullover is made of knit polyester fabric. The fabric for all the knitted fabric is produced in the United States from yarns manufactured in Vietnam. The sewing thread is formed and finished in the United States. In Guatemala, the fabrics are cut, sewn and assembled into the finished garment and the sparkle sublimation process and screen print design are applied to the panel(s). The garments are exported directly from Guatemala to the U.S.
The applicable subheading for style JT1794 will be 6110.30.3059, Harmonized Tariff Schedule of the United States (HTSUS), which provides for sweaters, pullovers and similar articles, knitted or crocheted, of man-made fibers, other, other, women’s or girls’, other. The duty rate will be 32% 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.
Based on the facts provided, 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)/61.24, 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 inquire whether the merchandise may be subject to a reduced rate of duty based upon the provisions of subheading 9822.05.10, subchapter XXII of the HTSUS. U.S. Note 22 to that chapter states: For a textile or apparel good provided for in chapters 61 through 63 of the tariff schedule that is not an originating good under general note 29 and for which the duty treatment set forth in heading 9822.05.10 is claimed, the rate of duty set forth in the general subcolumn of rate of duty column 1 shall apply only on the value of the assembled good minus the value of fabrics formed in the United States, components knit-to-shape in the United States and any other materials of U.S. origin used in the production of such a good, provided that the good is sewn or otherwise assembled in the territory of a party to the Agreement (other than the United States) specified in general note 29(a) with thread wholly formed in the United States, from fabrics wholly formed in the United States and cut in one or more parties to the Agreement (other than the United States) as defined in general note 29(a) or from components knit-to-shape in the United States, or both. For purposes of this note- (a) a fabric is wholly formed in the United States if all the production processes and finishing operations, starting with the weaving, knitting, needling, tufting, felting, entangling or other process, and ending with a fabric ready for cutting or assembly without further processing, took place in the United States; and (b) a thread is wholly formed in the United States if all the production processes, starting with the extrusion of filaments, strips, film or sheet, and including slitting a film or sheet into strip, or the spinning of all fibers into thread, or both, and ending with thread, took place in the United States. The pullover is cut and assembled, as well as sewn in a DR-CAFTA country, using fabric that is wholly formed in the U.S., using thread that is wholly formed in the U.S., and the finished pullover is classified in chapter 61. In this regard, the pullover may be eligible under 9822.05.10, HTSUS.
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 Bruce Kirschner at 646-733-3048.
Sincerely,
Thomas J. Russo
Director
National Commodity Specialist Division