CLA-2-61:OT:RR:NC:N3:358
Mr. Lisias Ransan
Varnam Inc., dba So Danca
328 S. Military Trail
Deerfield Beach, FL 33442
RE: The tariff classification and status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA) of girl’s apparel from the Dominican Republic.
Dear Mr. Ransan:
In your letter dated July 9, 2013, you requested a ruling on the status of a girl’s leotard from the Dominican Republic under DR-CAFTA.
The submitted sample, Style E02 LE is a girl’s leotard constructed of knit fabric that is 90% nylon, 10% spandex. The leotard has a front lining constructed of knit fabric that is 100% nylon. The sleeveless, camisole style garment has a drop back opening and narrow shoulder straps that meet at the midsection of the open back where they connect to each other by means of a horizontal strap section. The straps attach to the deep cut garment sides. The neckline perimeter, including the straps is made with elasticized capping fabric. Elasticized fabric is used at the leg openings. The garment is used for dance and is a girl’s size 10.
The Explanatory Note to heading 61.14 states that "The heading includes, inter alia: (5) Special articles of apparel used for certain sports or for dancing or gymnastics (e.g., fencing clothing, jockeys’ silks, ballet skirts, leotards)."
The applicable subheading for Style E02 LE will be 6114.30.2010, Harmonized Tariff Schedule of the United States (HTSUS), which provides for other garments, knitted or crocheted: of man-made fibers: bodysuits and bodyshirts, of fabric containing by weight 5 percent or more elastomeric yarn or rubber thread. The rate of duty will be 32 percent 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/.
You state that the leotard is made in the Dominican Republic of Brazilian originating fabric that you believe is designated as short supply and described in U.S Note 20(a)(147), Subchapter XXII, Chapter 98, HTSUS. Specifically, the fabric is described in the aforementioned Note as “Certain Warp Stretch Woven Nylon/Rayon/Spandex Fabric classified in HTS: 5516.00.0040 or 5516.23.0040; Fiber Content: Rayon (67-80%), Nylon (15-35%), Spandex (2-6%); yarn Configuration: Warp: Nylon filament combined with spandex filament; Filling: Rayon staple; Yarn Denier: Nylon and Spandex of various deniers; Width: 56-60 inches (142-153 cm); Weight: 220-315 grams per square meter; Thread Count ( Density): 76-110 ends per inch (Warp) X 70-90 picks per inch (Filling); (30 -44 ends per cm (Warp) X 27-36 picks per cm (Filling); Weave type: Twill Weave; Finishing processes: Airjet Dyed.” The fabric for the leotard is cut in the Dominican Republic where the garment is then sewn and assembled. You advise that the sewing thread fabric and visible lining is formed and finished in the Dominican Republic or the United States. After assembly, the leotard is packaged in a single polybag 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)/61.37, 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 leotard 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.
The fabric for the leotard is not one of the fabrics listed in U.S. note 20 to subchapter XXII of chapter 98 and does not meet the requirements of HTSUS General Note 29(m)(viii)(B)(1).
Based on the facts provided, the leotard does not 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