CLA-2-62:OT:RR:NC:N3:356
Ms. Jennifer R. Diaz, Esq.
BECKER & POLIAKOFF
121 Alhambra Plaza
10th Floor
Coral Gables, FL 33134
RE: The tariff classification and status under the U.S. - Panama Trade Promotion Agreement (PANTPA) of men’s woven shirts from Panama.
Dear Ms. Diaz:
In your letter dated April 17, 2014, you requested a tariff classification ruling, on behalf of your client, Confecciones Comodoro, S.A. The submitted samples will be returned.
The garment, identified as Style 01-0008-09-R-C, is a men’s Guayabera-style shirt. The garment is constructed from 100% linen, solid color woven fabric. The sample garment is a size Medium. The shirt features a self-fabric point collar, a left-over-right full front opening with seven closures, short hemmed sleeves, a rear yoke, front shoulder yokes, two patch pockets on the chest and two at the waist with a decorative button at the center top of each pocket, two vertical columns of pin tucks on each front panel extending from the shoulder yoke to the garment bottom, six vertical columns of pin tucks on the center back panel, decorative buttons at the top and bottom of the pin tuck columns, side vents with two button closures, and a straight self-fabric bottom band. You state that an identical garment will be manufactured in 100% cotton woven fabric, as well.
The garment, identified as Style 01-0015-27-01-R-L, is a men’s Guayabera-style shirt. The garment is constructed from 100% cotton, solid color woven fabric. The sample garment is a size Small. The shirt features a self-fabric point collar, a left-over-right full front opening with seven closures, long sleeves with vents and a single button closure on the cuffs, a rear yoke, front shoulder yokes, two patch pockets on the chest and two at the waist with a decorative button at the center top of each pocket, two vertical columns of pin tucks on each front panel extending from each shoulder yoke to the garment bottom, four vertical columns of pin tucks on the center back panel, decorative buttons at the top and bottom of the pin tuck columns, side vents with a single button closure, and a straight self-fabric bottom band. You state that an identical garment will be manufactured in 100% linen woven fabric, as well.
The applicable subheading for Styles 01-0015-27-01-R-L and 01-0008-09-R-C, shirts of 100% linen, woven fabric will be 6205.90.4040, Harmonized Tariff Schedule of the United States, (HTSUS), which provides for Men’s or boys’ shirts: Of other textile materials: Other: Other. The duty rate is 2.8 % ad valorem.
The applicable subheading for Styles 01-0015-27-01-R-L and 01-0008-09-R-C, shirts of 100% cotton, woven fabric will be 6205.20.2066, HTSUS, which provides for: Men’s or boys’ shirts: Of cotton: Other: Other: Other: Other: Men’s. The rate of duty will be 19.7% 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 the World Wide Web at http://www.usitc.gov/tata/hts/.
The manufacturing operations for, Styles 01-0015-27-01-R-L and 01-0008-09-R-C, are as follows:
The fabrics are produced in China.
The sewing thread is formed and finished in China.
The buttons are manufactured in China.
The pleating is performed in Panama.
The garments are cut, sewn and assembled in Panama.
The garments are exported directly to the U.S. from Panama
United States-PanamaTrade Promotion Agreement.
For the purposes of this note, subject to the provisions of subdivisions (c), (d), (n) and (o) thereof, a good imported into the customs territory of the United States is eligible for treatment as an originating good of Panama or of the United States under the terms of this note if–
the good is wholly obtained or produced entirely in the territory of Panama or of the United States, or both;
the good is produced entirely in the territory of Panama or of the United States, or both, and—
(A) each of the nonoriginating materials used in the production of the good undergoes an applicable change in tariff classification specified in subdivision (o) of this note; or
(B) the good otherwise satisfies any applicable regional value-content or other requirements set forth in such subdivision (o); and satisfies all other applicable requirements of this note and of applicable regulations;
or the good is produced entirely in the territory
As the good contains non-originating materials, it would have to undergo an applicable change in tariff classification in order to meet the requirements of GN 35(b)(ii)(A).
General Note 35 (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.
For goods classified in 6205.20 and 6205.90, GN 35/62.29 requires:
A change to subheadings 6205.10 and 6205.90 from any other chapter, except 5106 through 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.
The component that determines the classification for Styles 01-0015-27-01-R-L and 01-0008-09-R-C is the woven fabric. The cotton fabric is classified in heading 5208 or 5211 and the linen fabric is classified in heading 5309, HTSUS.
The cotton woven fabric does not meet the terms of the tariff shift. Accordingly, Styles 01-0015-27-01-R-L and 01-0008-09-R-C constructed from 100% cotton woven fabric do not qualify for PANTPA preferential treatment because they do not meet the requirements of HTSUS General Note 35(b)(ii)(A). The merchandise will not be entitled to a free rate of duty under the PANTPA.
The linen woven fabric is classified in heading 5309 and meets the terms of the tariff shift.
General Note 35(o), 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.
The sewing thread used to assemble the linen garments will not be formed and finished in one or more of the parties to the Agreement.
Based upon the facts provided, Styles 01-0015-27-01-R-L and 01-0008-09-R-C constructed from 100% linen woven fabric do not qualify for PANTPA preferential treatment because they do not meet the requirements of HTSUS General Note 35(b)(ii)(A). The merchandise will not be entitled to a free rate of duty under the PANTPA.
Your letter also inquires as to whether or not Style 01-0015-27-01-R-L may be entitled to a free rate of duty based upon the provisions of subheading 9822.09.63, subchapter XXII of the HTSUS.
Subheading 9822.09.63, HTSUS, provides:
Apparel goods described in U.S. note 41 to this subchapter and entered pursuant to its provisions. Chapter 98, subchapter XXII of the HTSUS U.S. Note 41 to that chapter states:
Heading 9822.09.63 shall apply to dresses of heading 6204 and shirts and blouses of heading 6205 or 6206 (whether or not such goods are originating goods under the terms of general note 35 to the tariff schedule) containing the following:
short or long sleeves;
a center front placket with button closure that runs the full length of the good;
a collar and yoke;
either pleats or embroidery that run the full length of the good on both sides of the center front placket from the yoke to the hem with a decorative button where the pleats or embroidery meet the yoke;
corresponding pleats or embroidery that run the full length of the good on both sides of the back from the yoke to the hem with a decorative button where the pleats or embroidery meet the yoke; four pockets with buttons on the front of the good;
a straight hem; and
side vents or slits with a button closure
provided that the good is both cut and sewn or otherwise assembled in the territory of the United States or Panama.
Style 01-0015-27-01-R-L does fall within the description of U.S. Note 41. Style 01-0015-27-01-R-L is eligible for U.S. Note 41. The merchandise will be entitled to a free rate of duty under the PANTPA.
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 Rosemarie Hayward via e-mail at [email protected].
Sincerely,
Gwenn Klein Kirschner
Acting Director
National Commodity Specialist Division