CLA-2-62:OT:RR:NC:N3:348
Alexis Martinez Medina
Sam Sol, S.A.
KM. 37.5 Carretera Interamericana
Santiago Sacatepequez
Guatemala 03017
RE: The tariff classification of men’s knee-length coats from Guatemala
Dear Ms. Medina:
In your letter dated July 21, 2013, you requested a tariff classification ruling. Your sample will be returned as requested.
Model number 910CL “Baxter” is a man’s knee-length coat with a shell constructed from 100% wool woven fabric. The coat features a notched collar with lapels, a full front opening secured by a left over right three button closure, long hemmed sleeves with a vent and four buttons at the cuff, two slanted front pockets below the waist, welt pockets on the inside chest, a pocket on the inside waist area, and a straight cut hemmed bottom with a rear vent.
The applicable subheading for model number 910CL “Baxter” will be 6201.11.0010, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Men’s or boys’ overcoats, carcoats, capes, anoraks, anoraks (including ski-jackets), windbreakers and similar articles (including padded, sleeveless jackets), other than those of heading 6203: Overcoats, carcoats, capes, cloaks and similar coats: Of wool or fine animal hair: Men’s. The rate of duty will be 41¢/kg + 16.3 percent ad valorem.
You have described the manufacturing and assembly of the garment as follows:
The woven fabric, for the coat, is composed of 100% worsted wool with an average fiber diameter 22 microns. The fabric is produced in Mexico.
The fabric for the pocketing and lining is manufactured in the US.
All fabric will be shipped to Guatemala. In Guatemala, the fabric will be cut, sewn and assembled.
The sewing thread, used to assemble the garments, will be produced in Honduras.
The garments will be shipped directly from Guatemala to the U.S.
General Note (GN) 29, HTSUS, sets forth the criteria for determining whether a good is originating under the DR-CAFTA. GN 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.
GN 29(d)(vii) contains the “cumulation” provision of the DR-CAFTA and provides:
Notwithstanding other provisions of this note, for purposes of determining whether a good of chapter 62 of the tariff schedule is an originating good, materials used in the production of such a good that are produced in the territory of Canada or of Mexico and that would be originating under this note if produced in the territory of a party to the Agreement shall be considered as having been produced in the territory of a party to the Agreement, provided that the United States Trade Representative has determined in a notice published in the Federal Register that the requirements of Appendix 4.1-B of the Agreement specified in subdivision (a) of this note have been met with respect to Canada or Mexico, as the case may be, and has announced the effective date of U.S. note 21 to subchapter XXII of chapter 98 of the tariff schedule. Such goods shall be entered under subheading 9822.05.05 of the tariff schedule, subject to the terms of such U.S. note 21, on or after the effective date specified in such notice. [Compiler’s Note: effective with respect to materials from MX, 8/15/08; reference to subheading 9822.05.05 is obsolete and current provisions appear to be 9822.05.11 and 9822.05.13.]
Therefore, in determining whether the men’s knee-length coat will qualify for preferential tariff treatment under the DR-CAFTA, the worsted wool fabric produced in Mexico may be treated as if it were a fabric produced in the territory of a party to the DR-CAFTA in accordance with GN 29(d)(vii).
Since the coat is not wholly obtained or produced entirely in the territory of one or more of the DR-CAFTA parties, the coat cannot qualify for preferential tariff treatment under GN 29(b)(i). Therefore, we must look to the tariff shift rule provided in GN 29(n) for the wool jackets to determine whether the garments qualify for preferential tariff treatment under the DR-CAFTA.
Chapter 62 of GN 29(n) provides certain relevant chapter notes, as well as the rule specific to the jackets at issue.
For goods classified in heading 6201, GN 29/62.12 requires:
A change to heading 6201.11 through 6201.13 from any other chapter, except from headings 5111 through 5113, 5204 and 5212, 5310 through 5311, chapter 54, headings 5508 through 5516, 5801 through 5802 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 one or more of the parties.
Any visible lining material contained in the apparel article must satisfy the requirements of chapter rule 1 to chapter 62.
GN 29(n), Chapter 62, Chapter rule 1 states:
Except for fabrics classified in tariff items 5408.22.10, 5408.23.11, 5408.23.21 and 5408.24.10, the fabrics identified in the following subheadings and headings, when used as visible lining material in certain men's and women's suits, suit-type jackets, skirts, overcoats, carcoats, anoraks, windbreakers and similar articles, must be both formed from yarn and finished in the territory of one more parties to the Agreement:
5111 through 5112, 5208.31 through 5208.59, 5209.31 through 5209.59, 5210.31 through 5210.59, 5211.31 through 5211.59, 5212.13 through 5212.15, 5212.23 through 5212.25, 5407.42 through 5407.44, 5407.52 through 5407.54, 5407.61, 5407.72 through 5407.74, 5407.82 through 5407.84, 5407.92 through 5407.94, 5408.22 through 5408.24,5408.32 through 5408.34, 5512.19, 5512.29, 5512.99, 5513.21 through 5513.49, 5514.21 through 5515.99, 5516.12 through 5516.14, 5516.22 through 5516.24, 5516.32 through 5516.34, 5516.42 through 5516.44, 5516.92 through 5516.94, 6001.10, 6001.92, 6005.31 through 6005.44 or 6006.10 through 6006.44.
GN 29(n), Chapter 62, 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.
GN 29(n), Chapter 62, Chapter rule 4 states:
Notwithstanding chapter rule 2 to this chapter, a good of this chapter containing sewing thread of headings 5204, 5401 and 5508 shall be considered originating only if such sewing thread is both formed from yarns and finished in the territory of one or more of the parties to the Agreement.
GN 29(n), Chapter 62, Chapter rule 5 states in pertinent part:
Notwithstanding chapter rule 2, a good of this chapter other than- men’s and boys’ and women’s and girls’ suits, trousers, suit-type jackets and blazers, vests and women’s and girls’ skirts of wool fabric, of subheadings 6203.11, 6203.31, 6203.41, 6204.51, 6204.61, 6211.39,m or 6211.41, provided that such goods are not made of carded wool or fabric or made from wool yarn having an average fiber diameter of less than or equal to 18.5 microns, that contains a pocket or pockets shall be considered originating only if the pocket bag fabric has been formed and finished in the territory of one or more of the parties to the Agreement for yarns wholly formed in the territory of one or more of the parties to the Agreement.
The wool fabric, which forms the outershell of the coat, is made of worsted wool and has an average fiber diameter of 21.5 microns. Thus, since the wool jackets are classified in subheading 6201.11 and the wool outershell fabric of the coat is not carded wool fabric and has an average fiber diameter greater than 18.5 microns, Chapter Rules 1, 3, 4, and 5 do not apply to the wool jackets at issue.
Therefore, in considering the applicable tariff shift rule, Rule 1, Chapter 62, GN 29(n), we only need to consider Chapter Rule 2 which limits the application of the tariff shift rule to the component that determines the tariff classification of the good. In this case, that component, i.e., the outershell, consists of the Mexican worsted wool fabric which is treated as originating, i.e., as if it were a fabric produced in the territory of a party to the DR-CAFTA, in accordance with GN 29(d)(vii). The coats are cut and assembled in Guatemala, a party to the DR-CAFTA, and the visible lining rule (Chapter Rule 1) does not apply.
Based on the above analysis, the wool coats qualify for preferential tariff treatment under the DR-CAFTA. However, there may be a quantitative limit on the amount of merchandise eligible for this preferential tariff treatment.
U.S. Note 21, Subchapter XXII, Chapter 98, provides, in relevant part:
For purposes of heading 9822.05.11 and 9822.05.13, the treatment provided for in general note 29(d)(vii) to the tariff schedule shall be limited to goods imported into the territory of the United States from a party to the Agreement as defined in general note 29(a) in aggregate quantities not to exceed the overall limit set forth in subdivisions (b) of this note.
The submitted wool coat is classified in heading 9822.05.11, HTSUS, which provides for: “Apparel goods of chapter 62 for which the treatment provided in U.S. note 21 to this subchapter is appropriate: If entered into the customs territory of the United States in aggregate quantities not to exceed the quantitative limit specified in US note 21(b) to this subchapter.” The applicable duty rate is Free.
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/.
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 under subheading 6201.11.0010, contact National Import Specialist Fung King Kong at (646) 733-3047. If you have any questions regarding eligibility for preferential treatment under DR-CAFTA, contact National Import Specialist Rosemarie Hayward at (646) 733-3064.
Sincerely,
Myles B. Harmon
Acting Director
National Commodity Specialist Division