CLA-2-62:OT:RR:NC:N3:360
Mr. Howard Goldberg
New World Sourcing Group, Inc.
246 West 38 Street
Suite 1104
New York, NY 10018
RE: The tariff classification and status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA) of women’s pants from the Dominican Republic
Dear Mr. Goldberg:
In your letter dated September 15, 2014, you requested a ruling on the classification and eligibility of women’s pants under the DR-CAFTA. Your sample will be returned.
Style x19665 is a pair of women’s pants constructed from 75% rayon, 22% nylon, and 3% spandex woven fabric. The garment features a flat waistband with six belt loops, a front zipper closure with three outside button closures and a single inside button closure, two side pockets, and hemmed leg openings.
The applicable subheading for style x19665 will be 6204.69.2510, Harmonized Tariff Schedule of the United States (HTSUS), which provides for women’s or girls’ trousers, bib and brace overalls, breeches and shorts (other than swimwear), trousers bib and brace overalls, breeches and shorts, of artificial fibers, other, trousers and breeches, women’s. The rate of duty will be 28.6% 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/.
You have described the manufacturing and assembly of the garment as follows:
The woven fabric and all components are made in China and will be shipped to the Dominican Republic
The fabric is cut, sewn, and assembled into the finished garment in the Dominican Republic
The garment will be shipped directly from the Dominican Republic to the United States
You state that the garment is made in the Dominican Republic of non-originating fabric. You further state that the fabric is made in China and is designated by the Office of Textiles and Apparel (OTEXA) as short supply (#147).
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 the 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.
The garment 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 fabric:
Certain warp stretch woven nylon/rayon/spandex fabric classified in HTSUS subheading 5516.22.0040 or 5516.23.0040; fiber content: rayon (67-80%), nylon (15-35%), spandex (2-6%); yarn configuration: warp: nylon filament combined with spandex filament and filling: rayon staple; yarn denier: nylon and spandex of various deniers; width: 56-60" (142-153 cm); weight: 220-315 grams per square meter; thread count (density): 76-110 ends per inch (warp) X 70-90 picks per inch (filling); (30-44 ends per cm (warp) X 27-36 picks per cm (filling)); weave type: twill weave; finishing processes: airjet dyed
The fabric for the woven pants is one of those listed with OTEXA and meets the requirements of HTSUS General Note 29(m)(viii)(B)(1). Based upon the facts provided, style x19665 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 ruling, contact National Import Specialist Kimberly Rackett at [email protected].
Sincerely,
Gwenn Klein Kirschner
Director
National Commodity Specialist Division