CLA-2-62:OT:RR:NC:N3:354
Ms. Sandra Tovar
CST Inc.
500 Lanier Ave., W. Suite 901
Fayetteville, GA 30214
RE: The tariff classification, country of origin and status under the North American Free Trade Agreement (NAFTA) of gloves from Canada; Article 509
Dear Ms. Tovar:
In your letter dated January 30, 2014, on behalf of your client, Wells Lamont Industry LLC, you requested a ruling on the status of gloves from Canada under the NAFTA.
FACTS:
Style SGK-STR is clute cut work glove constructed of 100% cotton woven fabric. The glove features a knit cuff and foam impact protection on the back of the hand under a neon yellow fabric constructed of 92% polyester, 8% spandex.
The manufacturing operations are as follows:
100% cotton yarns are made in U.S.
100% cotton woven fabric is made in U.S. and sent to Canada for cutting and sewing.
The cotton thread is made in the U.S.
The foam is made in the U.S.
The neon yellow fabric is made in Korea.
The foam and the neon fabric are laminated together and cut to shape in U.S.
This laminated fabric is sent to Canada for sewing onto the glove.
The finished glove is imported directly from Canada into the U.S.
ISSUES:
What are the classification, status under the NAFTA, and country of origin of the subject merchandise?
CLASSIFICATION:
The applicable subheading for this style will be will be 6216.00.3800, Harmonized Tariff Schedule of the United States (HTSUS), which provides for which provides for Gloves, mittens and mitts: Other: Of cotton: Other: Without fourchettes. The duty rate will be 23.5 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/.
NAFTA ELIGIBILITY – LAW AND ANALYSIS:
General Note 12(b), HTSUS, sets forth the criteria for determining whether a good is originating under the NAFTA. General Note 12(b), HTSUS, (19 U.S.C. § 1202) states, in pertinent part, that
For the purposes of this note, goods imported into the customs territory of the United States are eligible for the tariff treatment and quantitative limitations set forth in the tariff schedule as “goods originating in the territory of a NAFTA party” only if--
(i) they are goods wholly obtained or produced entirely in the territory of Canada, Mexico and/or the United States; or
(ii) they have been transformed in the territory of Canada, Mexico and/or the United States so that--
(A) except as provided in subdivision (f) of this note, each of the non-originating materials used in the production of such goods undergoes a change in tariff classification described in subdivisions (r), (s) and (t) of this note or the rules set forth therein, or
(B) the goods otherwise satisfy the applicable requirements of subdivisions (r), (s) and (t) where no change in tariff classification is required, and the goods satisfy all other requirements of this note; or
(iii) they are goods produced entirely in the territory of Canada, Mexico and/or the United States exclusively from originating materials; or
(iv) they are produced entirely in the territory of Canada, Mexico and/or the United States but one or more of the nonoriginating materials falling under provisions for “parts” and used in the production of such goods does not undergo a change in tariff classification because--
(A) the goods were imported into the territory of Canada, Mexico and/or the United States in unassembled or disassembled form but were classified as assembled goods pursuant to general rule of interpretation 2(a), or
(B) the tariff headings for such goods provide for and specifically describe both the goods themselves and their parts and is not further divided into subheadings, or the subheadings for such goods provide for and specifically describe both the goods themselves and their parts,
provided that such goods do not fall under chapters 61 through 63, inclusive, of the tariff schedule, and provided further that the regional value content of such goods, determined in accordance with subdivision (c) of this note, is not less than 60 percent where the transaction value method is used, or is not less than 50 percent where the net cost method is used, and such goods satisfy all other applicable provisions of this note.
Chapter 62, Chapter rule 3 states in pertinent part:
For purposes of determining the origin of a good of this chapter, 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 the rule for that good. If the rule requires that the good must also satisfy the tariff change requirements for visible lining fabrics listed in chapter rule 1 for this chapter, such requirement shall only apply to the visible lining fabric in the main body of the garment, excluding sleeves, which covers the largest surface area, and shall not apply to removable linings.
For goods classified in heading 6216, General Note 12/62.38 requires:
A change to headings 6213 through 6217 from any other chapter, except from headings 5106 through 5113, 5204 through 5212, 5307 through 5308 or 5310 through 5311, chapter 54, or headings 5508 through 5516, 5801 through 5802 or 6001 through 6006, provided that the good is both cut and sewn or otherwise assembled in the territory of one or more of the NAFTA parties.
The component that determines the classification of the good is the cotton woven fabric, which is said to be woven in the United States of yarns made in the U.S., then cut and sewn into gloves in Canada.
Based on the facts provided, the goods described above qualify for NAFTA preferential treatment, because they meet the requirements of HTSUS General Note 12(b)(ii). The goods will therefore be entitled to a Free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements.
COUNTRY OF ORIGIN – LAW AND ANALYSIS: Section 334 of the Uruguay Round Agreements Act (codified at 19 U.S.C. 3592), enacted on December 8, 1994, provided rules of origin for textiles and apparel entered, or withdrawn from warehouse for consumption, on and after July 1, 1996. Section 102.21, Customs Regulations (19 C.F.R. 102.21), published September 5, 1995 in the Federal Register, implements Section 334 (60 FR 46188). Section 334 of the URAA was amended by section 405 of the Trade and Development Act of 2000, enacted on May 18, 2000, and accordingly, section 102.21 was amended (68 Fed. Reg. 8711). Thus, the country of origin of a textile or apparel product shall be determined by the sequential application of the general rules set forth in paragraphs (c)(1) through (5) of Section 102.21.
Paragraph (c)(1) states, "The country of origin of a textile or apparel product is the single country, territory, or insular possession in which the good was wholly obtained or produced." As the subject merchandise is not wholly obtained or produced in a single country, territory or insular possession, paragraph (c)(1) of Section 102.21 is inapplicable.
Paragraph (c)(2) states, "Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1) of this section, the country of origin of the good is the single country, territory, or insular possession in which each of the foreign materials incorporated in that good underwent an applicable change in tariff classification, and/or met any other requirement, specified for the good in paragraph (e) of this section:" Paragraph (e) in pertinent part states, The following rules shall apply for purposes of determining the country of origin of a textile or apparel product under paragraph (c)(2) of this section:
HTSUS Tariff shift and/or other requirements 6215-6217 (1) If the good consists of two or more component parts, a change to an assembled good of heading 6215 through 6217 from unassembled components, provided that the change is the result of the good being wholly assembled in a single country, territory, or insular possession.
As the glove is wholly assembled in Canada, country of origin is conferred in Canada.
HOLDING:
The applicable subheading for Style SGK-STR will be 6216.00.3800, HTSUS, which provides for Gloves, mittens and mitts: Other: Of cotton: Other: Without fourchettes. The duty rate will be 23.5 percent ad valorem.
Style SGK-STR is an originating good under the NAFTA pursuant to the tariff shift rules set forth in GN 12(b).
Pursuant to 19 CFR §102.21, the country of origin for marking purposes is Canada.
The holding set forth above applies only to the specific factual situation and merchandise identified in the ruling request. This position is clearly set forth in section 19 CFR 181.100(a)(2). This section states that "a ruling letter is issued on the assumption that all of the information furnished in connection with the ruling request and incorporated in the ruling letter, either directly, by reference, or by implication, is accurate and complete in every material respect."
This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 C.F.R. 181). Should it be subsequently determined that the information furnished is not complete and does not comply with 181.100(a)(2), the ruling will be subject to modification or revocation. In the event there is a change in the facts previously furnished, this may affect the determination of country of origin. Accordingly, if there is any change in the facts submitted to Customs, it is recommended that a new ruling request be submitted.
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 Maribeth Dunajski at (646) 733-3045.
Sincerely,
Gwenn Klein Kirschner
Acting Director
National Commodity Specialist Division