CLA-2-61:OT:RR:NC:N3:361
Mr. Justin Williams
IDS International Development Systems Inc.
1140 Connecticut Avenue, NW, Suite 950
Washington, D.C. 20036
RE: The tariff classification and status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA) of ladies’ t-shirts from Guatemala.
Dear Mr. Williams:
In your letter dated December 11, 2013, on behalf of your client Guatemala Textile and Apparel Association, you requested a ruling on the status of a woman’s t-shirt from Guatemala under DR-CAFTA.
The submitted sample, Style 2014SUM001, is a woman’s t-shirt constructed from 100% viscose rayon jersey knit fabric. The fabric does not weigh more than 200 grams per square meter. The garment features a crew neckline, short hemmed sleeves, and a straight hemmed bottom.
You propose classification under 6110.30.3059, as a pullover. However, the garment is more specifically provided for under heading 6109 as a t-shirt.
We are returning your sample as requested.
The applicable subheading will be 6109.90.1050, Harmonized Tariff Schedule of the United States (HTSUS), which provides for women’s or girls’ T-shirts, singlets, tank tops and similar garments, knitted or crocheted, of man-made fibers, women’s or girls’, T-shirts, women’s. The duty rate will be 32% 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/.
The manufacturing operations are as follows:
Fibers from China
Yarn spun in China
Fabric knitted in Guatemala
Fabric dyed in Guatemala
Garment cut, sewn and assembled in Guatemala
The garments will be shipped directly from Guatemala to the United States.
You state that the garment is made in Guatemala of non-originating yarn. You further advise that the yarn is made in China and is designated by the Office of Textiles and Apparel (OTEXA) as short supply (#46).
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 t-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) and (b) 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 Chapter 98, U.S. Note 20(b) is the following:
The United States Trade Representative may modify the enumeration of designated
fabrics, yarns and fibers set forth in subdivision (a) of this note to reflect CITA
determinations described in subdivision (a) of this note, in a notice published in the
Federal Register.
Within the Office of Textiles and Apparel’s short supply list for CAFTA-DR, Annex 3.25, is the following designated yarn:
Certain micro-denier open-end spun staple viscose yarn (30 singles and 36 singles solution dyed), classified in HTSUS subheading 5510.11.0000.
The yarn for the t-shirt is one of the yarns listed with OTEXA and meets the requirements of HTSUS General Note 29(m)(viii)(B)(1).
Based on the facts provided, the t-shirt qualifies 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 classification, contact National Import Specialist Peggy Fitzgerald at 646-733-3052. If you have any questions regarding the eligibility under DR-CAFTA, contact National Import Specialist Rosemarie Hayward at 646-733-3064.
Sincerely,
Gwenn Klein Kirschner
Acting Director
National Commodity Specialist Division