CLA-2-62:OT:RR:NC:N3:358
Ms. Donna L. Shira
Sharretts, Paley, Carter & Blauvelt, P.C.
75 Broad Street
New York, NY 10004
RE: The tariff classification and status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA) of infant’s apparel from the Dominican Republic.
Dear Ms. Shira:
In your letter dated July 10, 2013, on behalf of your client F&T Apparel, you requested a ruling on the status of an infant boy’s four-piece jacket, trouser, shirt and tie dress suit set from the Dominican Republic under DR-CAFTA.
The submitted sample, Style PPR064S, consists of three garments and one apparel accessory. The suit type jacket has three panels sewn vertically; a two plastic button front opening that fastens left over right and two faux patch pockets. The self-fabric pull-on pants have a faux front zipper placket, a fully elasticized waistband and hemmed fabric at the leg openings. The long sleeve shirt has a full front opening that opens left over right and is secured by five plastic buttons, a pointed collar and one button sleeve cuffs. The pre-fashioned tie secures to the front of the shirt at the neckline by means of a metal clip. The jacket and pants are made of polyester woven fabric. The shirt is made of 55% cotton 45% polyester shirting fabric. The tie is made of a different polyester woven fabric. The items will be imported in babies’ sizes 12 to 24 months.
You propose that the shirt is classifiable in tariff subheading 6209.20.5045, which provides for babies’ garments and clothing accessories, of cotton, imported as parts of sets. You also propose that the suit jacket and pants are classifiable in tariff subheading 6209.30.3030, which provides for babies’ garments and clothing accessories, of synthetic fibers, imported as parts of sets. With respect to classification of the tie, you state this article does not require separate classification because it is an accessory to the entire set.
Classification of goods under the Harmonized Tariff Schedules of the United States (HTSUSA) is governed by the General Rules of Interpretation (GRI). GRI 1 provides that classification shall be determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes. Note 14 to Section XI, HTSUSA, requires textile garments of different headings be separately classified in their own headings even if put up in sets for retail sale unless the context otherwise requires. For purposes of Note 14, the expression "textile garments" means garments of headings 6201 to 6211.
Note 14 of Section XI, of the Harmonized Tariff Schedules of the United States (HTSUSA), requires that textile garments of different headings be separately classified, thus preventing classification of the four–piece set consisting of two or more garments as sets. If a set cannot exist by application of Note 14, the articles that may be packaged with the garments must also be classified separately.
By application of GRI 1, the woven suit type jacket and pants are classified under subheading, 6209.30.3030, HTSUSA, which provides for babies’ garments and clothing accessories, of synthetic fibers, other, imported as parts of sets.
By application of GRI 1, the woven shirt is classified under subheading, 6209.20.5045, HTSUSA, which provides for babies’ garments and clothing accessories, of cotton, other, imported as parts of sets.
By application of GRI 1, the woven tie is classified under subheading, 6209.30.3030, HTSUSA, which provides for babies’ garments and clothing accessories, of synthetic fibers, other, imported as parts of sets.
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/.
You state that the suit jacket and pants are both made in the Dominican Republic of non-originating fabric designated as short supply and described in U.S Note 20(a)(34), Subchapter XXII, Chapter 98, HTSUSA. The fabric is described in the Note as “Woven fabrics classified in subheading 5512.99, containing 100 percent by weight of synthetic staple fibers, not of square construction, of average yarn number exceeding 55 metric.” You further advise that the shirt is made in El Salvador of Chinese origin shirting fabric designated as short supply and described in U.S Note 20(a)(8), Subchapter XXII, Chapter 98, Harmonized Tariff Schedules of the United States (HTSUS). The fabric is described in the Note as “Fabrics classified in subheading 5201.21 or 5210.31, not of square construction, containing more than 70 warp ends and filling picks per square centimeter, of average yarn number exceeding 70 metric.” The necktie is made in China. The fabric for the jacket and pants are cut in the Dominican Republic where the garments are then sewn and assembled. You also advise that the sewing thread, pocket fabric and visible lining are not formed and finished in the United States or one of the DR- CAFTA territories. The fabric for the shirt is cut in El Salvador where the garment is then sewn, assembled and sent to the Dominican Republic where the jacket, pants, shirt and tie are packed together on a single polybag hanger for export to the United States.
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)/62.35A, 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 shirt 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 are the following designated fabrics:
(8) Woven fabrics classified in subheading 5512.99, containing 100% by weight of synthetic staple fibers, not of square construction, of average yarn number exceeding 55 metric.
(34) Woven fabrics classified in subheading 5512.99, containing 100% by weight of synthetic staple fibers, not of square construction, of average yarn number exceeding 55 metric.
The fabric for the suit type jacket and pants is one of the fabrics listed in U.S. note 20 to subchapter XXII of chapter 98 and meets the requirements of HTSUS General Note 29(m)(viii)(B)(1).
The fabric for the shirt is another one of the fabrics listed in U.S. note 20 to subchapter XXII of chapter 98 and meets the requirements of HTSUS General Note 29(m)(viii)(B)(1).
Based on the facts provided, the suit type jacket, pants and shirt qualify for DR-CAFTA preferential treatment assuming compliance with 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 Bruce Kirschner at 646-733-3048.
Sincerely,
Thomas J. Russo
Director,
National Commodity Specialist Division