CLA-2-61:OT:RR:NC:N3:361
Mr. Ricky Villena
Neutralogistics CHB
8400 NW 25 Street, Suite 100
Miami, FL 33122
RE: The tariff classification and status under the United States-Peru Trade Promotion Agreement Implementation Act (Peru TPAIA), of a woman’s tank top, pullover and top from Peru.
Dear Mr. Villena:
In your letter received June 6, 2013 you requested the status of three women’s garments from Peru under the Peru TPAIA on behalf of your client Peace Love World.
The submitted sample, Style LS2013 Peace, is a woman’s top constructed of 52.2% cotton and 47.8% modal rayon knit fabric. The sleeveless garment features a deep and revealing V-shaped front; short hemmed sleeves; screen print designs on the front, back and right sleeve; embroidered designs on the lower left side of the front panel, lower right side of the back panel and both sleeves; an applique on the upper back panel; and a hemmed bottom.
The submitted sample, Style LS2113 happy is a woman’s cut and sewn pullover that is constructed from 52.2% cotton and 47.8% modal rayon jersey knit fabric. The outer surface of the garment measures more than nine stitches per two centimeters in the direction that the stitches were formed. The garment features a rib knit crew neck; short hemmed sleeves; a screen print design on the front panel with contrast color embroidery thread; a screen print of the words “i am happiness” on the lower front panel; a screen print of the words “Love 2 Love” with contrast color embroidery thread on one sleeve component; a heart design embroidered on one sleeve component; a contrast color embroidered design on the lower front panel; an applique on the upper rear panel; and a straight hemmed flared garment bottom. The garment extends to below the waist.
The submitted sample, Style LS1012 Happy, is a woman’s tank top constructed of 52.2% cotton and 47.8% modal rayon knit fabric. The sleeveless garment features a U-shaped front; a racer style back neckline; 2 inch wide shoulder straps; shoulder straps and armholes finished with textile trim; screen printing on front and rear panels; embroidered designs on the front and rear panels; an applique on the upper rear panel; and a hemmed bottom.
Garments which are claimed to be constructed from such a blend are subject, upon importation, to laboratory analysis by U.S. Customs and Border Protection to verify the actual weight of the component fibers. Please be advised that a slight variation from the above stated fiber content may affect the classification of the subject garments. The weights of the component fibers will be determined as they exist in the goods as imported, with no tolerance factor being allowed per HQ 082863.
We are returning your samples.
The applicable subheading for style LS2013 Peace will be 6114.20.0010, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Other garments, knitted or crocheted: Of cotton: Tops: Women’s. The duty rate will be 10.8% ad valorem.
The applicable subheading for style LS2113 happy will be 6110.20.2079, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Sweaters, pullovers, sweatshirts, waistcoats (vests) and similar articles, knitted or crocheted: Of cotton: Other: Other: Other: Women’s or girls’: Other. The duty rate will be 16.5%.
The applicable subheading for style LS1012 Happy will be 6109.10.0060, Harmonized Tariff Schedule of the United States (HTSUS), which provides for T-shirts, singlets, tank tops and similar garments, knitted or crocheted: Of cotton: Women’s: Tank tops: Women’s. The duty rate will be 16.5% 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 the World Wide Web at http://www.usitc.gov/tata/hts/.
You have requested a determination under the Peru TPAIA. The manufacturing operations, for all the garments, are as follows:
The fabric is knitted in Peru from yarn spun in Peru.
The fabric is cut, sewn and assembled in Peru.
The sewing thread is made in Peru from Peruvian fibers and yarns.
The appliques are produced in Peru from U.S. fibers and yarns.
The embroidery is done in Peru using U.S. fibers and yarns.
The screen printing is done in Peru using U.S. ink.
The goods are imported directly into the U.S. from Peru.
General Note (GN) 32, HTSUS, sets forth the criteria for determining whether a good is originating under the Peru TPAIA. GN 32(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 Peru, the United States, or both;
(ii) the good was produced entirely in the territory of Peru, the United States, or both, 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 Peru, the United States, or both, exclusively from materials described in subdivision (b)(i) or (b)(ii) of this note.
You state the good was produced entirely in the territory of one of the parties to the Agreement exclusively from originating materials. As a result GN 32(b)(iii) must be applied, and each component will have to undergo an applicable change in tariff classification in order to meet the requirements of GN 32(b)(iii).
The fabric, used to manufacture all the garments, is classified in heading 6006. The fabric is composed of Peruvian cotton fibers and Australian modal rayon fibers. If not carded, combed or otherwise processed for spinning the rayon staple fibers are classified under heading 5504. If carded, combed or otherwise processed for spinning the rayon staple fibers are classified under heading 5507.
The product-specific rule for goods classified in heading 6006, General Note 32(n), Chapter 60.3 is as follows: A change to headings 6003 through 6006 from any other chapter, except from headings 5106 through 5113, chapter 52, headings 5307 through 5308, 5310 through 5311, 5401 through 5402, subheading 5403.20, 5403.33 through 5403.39, 5403.42 through 5403.49, headings 5404 through 5408 or chapter 55.
Since the rayon fibers are classified in either heading 5504 or 5507, they would not meet the terms of the tariff shift, and the fabric would not qualify as an originating material under the provisions of the Peru TPAIA.
As a result, the garments are not considered goods produced exclusively from originating materials, and would not be entitled to a free rate of duty under the requirements of GN 32(b)(iii).
Since the goods have been determined to contain non-originating materials, they will have to undergo an applicable change in tariff classification in order to meet the requirements of GN 32(b)(ii)(A).
General Note 32 (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.
The component that determines the classification, for each garment, is the cotton/rayon fabric.
For goods classified in heading 6114, General Note 32 (n), 61.24 requires:
A change to headings 6113 through 6117 from any other chapter, except from headings 5106 through 5113, 5204 through 5212, 5307 through 5308, 5310 through 5311, 5401 through 5402, subheading 5403.20, 5403.33 through 5403.39, 5403.42 through 5403.49, headings 5404 through 5408, 5508 through 5516 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 Peru, the United States, or both.
For goods classified in headings 6109 and 6110, General Note 32 (n), 61.20 requires:
A change to headings 6105 through 6111 from any other chapter, except from headings 5106 through 5113, 5204 through 5212, 5307 through 5308, 5310 through 5311, 5401 through 5402, subheading 5403.20, 5403.33 through 5403.39, 5403.42 through 5403.49, headings 5404 through 5408, 5508 through 5516 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 Peru, the United States, or both.
The cotton/rayon fabric classified in heading 6006 does not meet the terms of the tariff shift. Therefore, the goods would not be entitled to a free rate of duty under the Peru TPAIA.
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 Peggy Fitzgerald at 646-733-3052. If you have any questions regarding the eligibility for preferential treatment under the Peru TPAIA, contact National Import Specialist Rosemarie Hayward at 646-733-3064.
Sincerely,
Thomas J. Russo
Director
National Commodity Specialist Division