CLA-2-64:OT:RR:NC:N4:447
Mr. Reynaldo Vasquez
ADI Footwear
Calle El Mirador, No. 5546, Colonia Excalon,
San Salvador, El Salvador
RE: The tariff classification of footwear produced in El Salvador and the eligibility for preferential treatment under the Dominican Republic – Central America Free Trade Agreement (DR-CAFTA).
Dear Mr. Vasquez: In your letter dated October 17, 2013 you requested a tariff classification ruling on behalf of ADI Footwear for a man’s sandal assembled in El Salvador from non-originating materials. Your request concerns the eligibility for preferential duty treatment for the footwear under the Dominican Republic-Central America-United States Free Trade Agreement (U.S./DR-CAFTA).
Style “Original Universal” is a man’s sandal with a rubber or plastics outer sole and a textile strap upper. The formed upper, constructed in China, consists of seven nylon straps, three plastic triangular shaped connectors, and hook and loop closures affixed to a rubber or plastics (EVA) topsole/midsole. The outer sole made of molded EVA is also made in China. In El Salvador, the upper is affixed to the outer sole by cementing, heating, and pressing. The finished footwear is cooled, trimmed, cleaned, and buffed.
The applicable subheading for the man’s sandal identified as style “Original Universal” will be 6404.19.3940, Harmonized Tariff Schedule of the United States (HTSUS), which provides for footwear with outer soles of rubber, plastics, leather or composition leather and uppers of textile materials: footwear with outer soles of rubber or plastics: other: footwear with open toes or open heels; footwear that is not less than 10 percent by weight of rubber or plastics: other: other: for men. The general rate of duty will be 37.5% ad valorem.
General Note 29, HTSUS, sets forth the criteria for determining whether a good is originating under the U.S./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 non-originating materials used in the production of the good undergoes an applicable change in tariff classification specified in subdivision (n) of this note; …
The formed upper component made in China is classified in subheading 6406.10.25-40, HTSUS, the provision for parts of footwear (including uppers whether or not attached to soles other than outer soles): of textile materials: other: according to value. The rubber or plastics outer sole made in China is classified in subheading 6406.20.0000, HTSUS, the provision for outer soles and heels of rubber or plastics.
General Note 29(b)(ii)(A) and 29(n) Chapter 64, Chapter Rule 1(2), states “a change to any other tariff item of Chapter 64 from any other subheading.” Both non-originating components make the required tariff from 6406.10, HTSUS, and 6406.20, HTSUS, to 6404.19.3940, HTSUS.
Based upon the facts provided, the sandal described above qualifies for preferential treatment and will therefore be entitled to a free rate of duty because it will meet the requirements under the U.S./DR-CAFTA.
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/.
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, Stacey Kalkines at 646-733-3042. Sincerely,
Gwenn Klein Kirschner
Acting Director
National Commodity Specialist Division