CLA-2-61:OT:RR:NC:N3:348
Mr. Rex Bolick
Southern Glove, Inc.
749 AC Little Drive
Newton, NC 28658-3769
RE: The tariff classification and status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA), of gloves from Honduras.
Dear Mr. Bolick:
In your undated letter, you requested a tariff classification ruling. The samples submitted will be returned.
Style #MZ0001-L is a full-fingered glove constructed of a knitted cotton jersey fabric with a uniform plastic dot coating covering the complete palmside, from fingertips to the wrist. The backside is made of a camouflage-printed knitted polyester fabric. The glove features a sewn on elasticized rib-knit cuff with a label bearing the registered “RedHead” name. The cumulation of features on the glove shows a design for use in the sport of hunting.
Style #MZ0002-L is a full-fingered glove constructed of a knitted cotton jersey fabric with a uniform plastic dot coating covering the complete palmside, from fingertips to the wrist. The backside is made of a camouflage-printed knitted polyester mesh fabric. The glove features a sewn on elasticized rib-knit cuff with a label bearing the registered “RedHead” name. The cumulation of features on the glove shows a design for use in the sport of hunting
The applicable subheading for styles MZ0001-L and MZ0002-L will be 6116.10.0800, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Gloves, mittens and mitts, knitted or crocheted: impregnated, coated or covered with plastics or rubber: other gloves, mittens and mitts, all the foregoing specially designed for use in sports, including ski and snowmobile gloves, mittens and mitts. The rate of duty will be 2.8 percent ad valorem.
You have described the manufacturing and assembly as follows:
Style #MZ0001-L
The knit, fabric for the back panel of the glove, is composed of staple polyester. The polyester knit fabric is produced in Taiwan.
The knit fabric, for the palm and thumb of the glove, is composed of staple cotton. The knit fabric is produced in the United States. PVC dots are applied to the cotton knit fabric in the U.S.
The knit fabric, for the wrist, is composed of cotton. The knit fabric is produced in the United States.
All fabrics will be shipped to the Honduras. In Honduras, the fabric will be cut-to-pattern and assembled.
The sewing thread used to assemble the garments will be produced in the U.S.
Style #MZ0002-L
The knit fabric, for the back panel of the glove, is composed of cotton. The cotton knit fabric is produced in China.
The knit fabric, for the palm and thumb of the glove, is composed of staple cotton. The knit fabric is produced in the United States. PVC dots are applied to the cotton knit fabric in the U.S.
The knit fabric, for the wrist, is composed of cotton. The cotton knit fabric is produced in the United States.
All fabrics will be shipped to the Honduras. In Honduras, the fabric will be cut-to-pattern and assembled.
The sewing thread used to assemble the garments will be produced in the U.S.
Both Styles will be shipped directly from the Dominican Republic to the U.S.
General Note (GN) 29, HTSUS, sets forth the criteria for determining whether a good is originating under the DR-CAFTA. GN 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.
As the goods contain nonoriginating materials, they would have to undergo an applicable change in tariff classification in order to meet the requirements of GN 29(b)(ii)(A).
General Note 29 (n), Chapter 61, Chapter rule 2 states:
For purposes of determining whether a good of this chapter is originating, the rule applicable to that good shall only apply to the component that determines the tariff classification of the good and such component must satisfy the tariff change requirements set out in that rule for that good.
For goods classified in heading 6116, General Note 29/61.38 requires:
A change to heading 6114 through 6116 from any other chapter, except from headings 5111 through 5113, 5204 and 5212, 5310 through 5311, chapter 54, headings 5508 through 5516, 5801 through 5802 or 6001 through 6006, provided that the good is cut or knit to shape or both, and sewn or otherwise assembled in the territory of one or more of the parties.
The non-originating materials are the cotton knit fabric for Style #MZ0001-L and polyester knit fabric for Style #MZ0002-L. Both fabrics are classified in heading 6005 or 6006, HTSUS.
General Note 29 (n), Chapter 61, Chapter rule 4 states:
Notwithstanding chapter rule 2 to this chapter, a good of this chapter containing sewing thread of headings 5204, 5401 and 5508 shall be considered originating only if such sewing thread is both formed from yarns and finished in the territory of one or more of the parties to the Agreement.
The sewing thread used to assemble the garment will be formed and finished in one of the parties to the Agreement.
The non-originating materials, for both Style #MZ0001-L and #MZ0002-L, do not meet the terms of the tariff shift rule. Based on the facts provided, Styles #MZ0001-L and #MZ0002-L do not qualify for DR-CAFTA preferential treatment, because they do not meet the requirements of HTSUS General Note 29(b)(ii)(A). The merchandise will not be entitled to a free rate of duty under the DR-CAFTA upon compliance with all applicable laws, regulations, and agreements.
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 Robert Ivers at (646) 733-3054. If you have any questions regarding eligibility for preferential treatment under DR-CAFTA, contact National Import Specialist Rosemarie Hayward at (646) 733-3064.
Sincerely,
Thomas J. Russo
Director
National Commodity Specialist Division