CLA-2-62:OT:RR:NC:N3:361
Ms. Martha Long
Pacific Alliance USA Inc.
1359 Broadway 21st Floor
New York, NY 10018
RE: The tariff classification and status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA), of women’s pants and accompanying sash belt; DR-CAFTA; set from Guatemala.
Dear Ms. Long:
In your letter dated August 16, 2012 you requested a ruling on the status of women’s pants with an attached sash belt for preferential tariff treatment under the Dominican Republic Central America Free Trade Agreement ("DR-CAFTA").
The submitted sample, Style P390, is a pair of women’s woven pants constructed from 68 percent polyester, 28 percent rayon and 4 percent spandex solid color woven fabric. The elastomeric yarn is U.S. origin. The pants feature a flat waistband with four belt loops; a 7 inch side seam zipper opening with a hook and loop closure at the waistband; two rear pockets; and hemmed leg openings. The garment also has a textile sash belt constructed of 95 percent polyester and 5% spandex knit fabric threaded through the belt loops.
The pants and belt are sold together at retail as a unit. They are adapted to each other, are mutually complementary and together form a whole that would not normally be offered for sale in separate parts. As such, they meet the definition of a composite good found in the Explanatory Notes to the General Rules of Interpretation, 3(b). The essential character of style P390 is imparted by the pants.
We are returning your sample.
The applicable subheading will be 6204.63.3510, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Trousers…woven: Of synthetic fibers: Trousers: Women’s. The duty rate will be 28.6% 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/.
The manufacturing operations for this garment are as follows:
The fabric for the pants is made in China.
The fabric for the sash belt is made in South Korea.
The sewing thread and pocket bag fabric are made in Guatemala.
The pants and sash are cut, sewn and assembled in Guatemala.
The garments are exported directly from Guatemala to the U.S.
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.
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)/62.29, 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 have suggested that the garments may be subject to a reduced rate of duty classified under 9822.05.01.
General Note 29(m)(viii)(B) states:
An apparel good of chapter 61 or 62 of the tariff schedule and imported under heading 9822.05.01 of the tariff schedule shall be considered originating if it is cut or knit to shape, or both, and sewn or otherwise assembled in the territory of one or more of the parties to the Agreement, and if the fabric of the outer shell, exclusive of collars and cuffs where applicable, is wholly of—
(1) one or more fabrics listed in U.S. note 20 to subchapter XXII of chapter 98; or
(2) one or more fabrics formed in the territory of one or more of the parties to the Agreement from one or more of the yarns listed in U.S. note 20 to such subchapter XXII; or
(3) any combination of the fabrics referred to in subdivision (B)(1), the fabrics referred to in subdivision (B)(2) or one or more fabrics originating under this note. The originating fabrics referred to in subdivision (B)(3) may contain up to 10 percent by weight of fibers or yarns that do not undergo an applicable change in tariff classification set out in subdivision (n) of this note. Any elastomeric yarn contained in a fabric referred to in subdivision (B)(1), (B)(2) or (B)(3) must be formed in the territory of one or more of the parties to the Agreement.
Chapter 98, subchapter XXII of the HTSUS U.S. Note 20(a) to that chapter states in pertinent part, that: Heading 9822.05.01 shall apply to textile or apparel goods of chapters 50 through 63 and subheading 9404.90 that contain any of the fabrics, yarns or fibers set forth herein, are described in general note 29 to the tariff schedule and otherwise meet the requirements of such general note 29.
Within that note, (71) provides:
Any other fabric, yarn or fiber that the Committee for Implementation of Textile Agreements (CITA) determines in a notice published in the Federal Register on or after March 1, 2006, is not available in commercial quantities in a timely manner in the territories of the parties to the Agreement, as defined in general note 29(a), subject to any quantitative limitations that CITA may establish for the fabric, yarn or fiber. On September 26, 2007, a notice published by CITA in the Federal Register determined that certain polyester/rayon/spandex, as specified below, are not available in commercial quantities in a timely manner. This product was added to the list in Annex 3.25 Section 4(e) of the CAFTA-DR Agreement in unrestricted quantities.
Two-Way Stretch Woven Polyester, Rayon, Spandex Fabric
HTS Subheading: 5515.11.00
Fiber Content: 50 to 77 percent polyester; 18 to 47 percent rayon; 3 to 8 percent spandex (for fabrics comprising single yarns in the warp, the polyester content may be higher)
Staple Length (where applicable): 4.44 to 6.99 centimeters (1.75 to 2.75 inches)
Yarn (three configurations):
#1: Warp and filling: plied polyester/rayon staple of various yarn sizes, combined with spandex filament of various deniers.
#2: Warp and filling 34/1 (English 20/1) or finer polyester/rayon staple, combined with spandex filament of various deniers.
#3: Warp: 34/1 (English 20/1) or finer polyester/rayon staple, or plied polyester/rayon staple of various yarn sizes, combined with spandex filament of various deniers;
Filling: singles or plied polyester filament of various yarn sizes, combined with spandex filament of various deniers.
NOTE: The designation "34/1 (English 20/1) or finer" describes a range of yarn specifications for yarn it its greige condition before dyeing and finishing of the yarn (if applicable) and before weaving, dyeing and finishing of the fabric. It is intended as a specification to be followed by the mill in sourcing yarn used to produce the fabric. Dyeing, finishing and weaving can alter the characteristic of the yarn as it appears in the finished fabric. This specification therefore includes yarns appearing in the finished fabric as coarser than 34/1 (English 20/1) provided that the coarser appearance occurs solely as the result of such processes.
Thread Count: 23 to 51 warp ends by 16 to 39 filling picks per centimeter (60 to 130 warp ends by 40 to 100 filling picks per inch)
Weave Type: Various (including plain and twill)
Weight:
-Fabrics comprising single yarns in the warp - 200 to 290 grams per square meter (5.9 to 8.6 ounces per square yard).
-Fabrics comprising plied yarns in the warp - 200 to 310 grams per square meter (5.9 to 9.1 ounces per square yard).
Width: 121 to 165 centimeters (English 48 to 65 inches)
Finish: Dyed and of yarns of different colors.
NOTE: Any elastomeric yarn contained in the above specified fabric must be formed in the territory of one or more of the CAFTA-DR parties (including the United States).
Based on the facts provided, the garment described may qualify for DR- CAFTA preferential treatment because garment meets the requirements of HTSUS General Note 29(m)(viii)(B)(1).
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 Peggy Fitzgerald at 646-733-3052. 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