CLA-2-64:OT:RR:NC:N3:447
Ms. Stacey Nesseth
Red Wing Shoes
314 Main Street
Red Wing, MN 55066-2337
RE: The tariff classification and status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA), of footwear assembled in the Dominican Republic.
Dear Ms. Nesseth:
In your letters dated January 23, 2015, and February 9, 2015, you requested a ruling on the status of footwear assembled in the Dominican Republic under the DR-CAFTA.
The merchandise at issue, referred to as Grizzly Tracker Boa, is a man’s lace up boot that covers the ankle. The upper is made from predominately man-made fiber textile. The upper is considered formed as defined in Additional US Note 4 to chapter 64 of the Harmonized Tariff Schedule of the United States (HTSUS). The sides and vamp of the upper are decorated with thin rubber or plastic wavy lines which are considered accessories or reinforcements and discounted from the external surface area calculations. A rubber or plastic reinforcing piece is attached at the back and above the heel. There is a small textile label on the lateral side of the boot with the words “Ultra Dry™ Waterproof.” You state that Ultra Dry™ is a membrane that renders the boot waterproof and is equivalent to Gore Tex™. The outer sole is made from rubber or plastics. The boot does not contain a foxing or foxing like band and is considered to be protective against water.
The formed upper of textile and outer sole of rubber or plastics are made in China. In the Dominican Republic, the upper is affixed to the outer sole by cementing.
The applicable tariff provision for Grizzly Tracker Boa will be 6404.19.2030, HTSUS, which provides for footwear with outer soles of rubber, plastics, leather or composition leather and uppers of textile materials: which is not “sports” or “athletic” footwear; footwear designed to be worn over, or in lieu of, other footwear as a protection against water, oil, grease or chemicals or cold or inclement weather: for men. The general rate of duty will be 37.5 percent ad valorem.
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.
General Note 29(n)/64.1 requires:
A change to subheadings 6401.10 or 6401.91 or tariff items 6401.92.90, 6401.99.30, 6401.99.60, 6401.99.90, 6402.30.50, 6402.30.70, 6402.30.80, 6402.91.50, 6402.91.80, 6402.91.90, 6402.99.20, 6402.99.80, 6402.99.90, 6404.11.90 or 6404.19.20 from any other heading outside headings 6401 through 6405, except from subheading 6406.10, provided that there is a regional value content of not less than 55 percent under the build-up method.
If imported separately, the non-originating formed upper component would be classified in subheading 6406.10.40, HTSUS, the provision for formed uppers of textile. The non-originating rubber or plastics outer sole would be classified in subheading 6406.20.00, HTSUS, the provision for outer soles of rubber or plastics.
Based on the facts provided, the boot described above does not qualify for DR-CAFTA preferential treatment because it does not meet the requirements of HTSUS General Note 29(b)(ii)(A). While the outer sole component satisfies the required shift, the formed upper component does not meet the terms of the tariff shift. The boot will therefore not be entitled to a free rate of duty under 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 [email protected].
Should you wish to request an administrative review of this ruling, submit a copy of this ruling and all relevant facts and arguments within 30 days of the date of this letter, to the Director, Commercial Rulings Division, U.S. Customs and Border Protection, Regulations & Rulings, 90 K Street N.E. – 10th floor, Washington, DC 20229-1177.
Sincerely,
Gwenn Klein Kirschner
Director
National Commodity Specialist Division