CLA-2-62:OT:RR:NC:N3:360
Ms. Diane L. Weinberg
Meeks, Sheppard, Leo & Pillsbury
570 Lexington Avenue
44th Floor
New York, NY 10022
RE: The tariff classification and status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA), of scrub tops and pants from El Salvador or Honduras. Correction to Ruling Number N225939
Dear Ms. Weinberg:
This replaces Ruling Number N225939, dated August 3, 2012, which contained a mistake of fact. In the manufacturing and assembly process, style 7832 was incorrectly described as featuring a drawstring. A complete corrected ruling follows.
In your letter dated July 12, 2012, on behalf of your client, Co Expo Ltd, you requested a ruling on the classification and eligibility of scrub tops and pants under the DR-CAFTA. Your samples will be returned as requested.
Style 7832 consists of a scrub top and a pair of scrub pants constructed from 65% polyester and 35% cotton woven fabric. The unisex pullover top features a V-neckline, short sleeves, a left chest pocket, and a hemmed bottom. The unisex pants feature an elasticized waist, a back patch pocket, and a hemmed bottom.
In your letter, you indicate that the top and bottom components of style 7832 will be matched and packed by set as to color, size, and construction, and that neither tops nor bottoms will be invoiced or packaged separately. Also, you clarified in a telephone conversation that the imported garments will be further packaged in the United States and invoiced, marketed, and sold only as two-piece units. As such, style 7832 will be considered an ensemble.
The applicable subheading for the scrub top of style 7832 will be 6204.23.0055, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Women’s or girls’ suits, ensembles, suit-type jackets, blazers, dresses, skirts, divided skirts, trousers, bib and brace overalls, breeches and shorts (other than swimwear): Ensembles: Of synthetic fibers: Other: Blouses and shirts: Other. The rate of duty will be 26.9 percent ad valorem. This is the rate that would apply if the garments were entered separately and classified in subheading 6206.40.3030, HTSUS.
The applicable subheading for the scrub pants of style 7832 will be 6204.23.0040, HTSUS, which provides for Women’s or girls’ suits, ensembles, suit-type jackets, blazers, dresses, skirts, divided skirts, trousers, bib and brace overalls, breeches and shorts (other than swimwear): Ensembles: Of synthetic fibers: Other: Trousers and breeches. The rate of duty will be 28.6 percent ad valorem. This is the rate that would apply if the garments were entered separately and classified in subheading 6204.63.3510, 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 the World Wide Web at http://www.usitc.gov/tata/hts/.
You have described the manufacturing and assembly of style 7832 as follows:
The polyester/cotton woven fabric is manufactured in China.
The fabric will be cut, sewn and assembled into scrubs in El Salvador or Honduras.
The sewing thread is formed and finished in the U.S.
The garments will be shipped directly to El Salvador or Honduras from the U.S.
General Note 29(b), HTSUS, sets forth the criteria for determining whether a good is originating under 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--
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 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
(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
the good was produced entirely in the territory of one or more of the parties to the Agreement exclusively from originating materials.
For goods classified in subheading 6204.23, General Note 29/62.19C requires:
A change to subheadings 6204.23 thru 6204.29 from any other chapter, provided 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.
Based on the facts provided, style 7832 qualifies for DR-CAFTA preferential treatment, because it meets the requirements of HTSUS General Note 29(b)(ii)(A). The merchandise will therefore be entitled to a free rate of duty under the DR-CAFTA upon compliance with all applicable laws, regulations, and agreements.
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 Kimberly Rackett at (646) 733-3051. If you have any questions regarding the eligibility under DR-CAFTA, contact National Import Specialist Rosemarie Hayward at (646) 733-3064.
Sincerely,
Thomas J. Russo
Director
National Commodity Specialist Division