CLA-2-64:OT:RR:NC:3:447
Mr. Reynaldo Vasquez
ADI Footwear
Calle El Mirador, No. 5546, Colonia Excalon,
San Salvador, El Salvador
RE: The tariff classification of footwear produced in El Salvador and the eligibility for preferential treatment under the Dominican Republic – Central America – United States Free Trade Agreement (DR-CAFTA).
Dear Mr. Vasquez,
In your letter dated February 9, 2015, you requested a tariff classification ruling for women’s and men’s sandals produced in El Salvador from non-originating materials. Your request concerns the eligibility for preferential duty treatment for the footwear under the DR-CAFTA.
The submitted sample identified as style # 1008645, a women’s “Original Universal Sport,” is a woman’s sandal having a rubber or plastics outer sole and a textile material upper. The upper consists of five straps made of tubular polyester solid webbing connected with triangular-shaped plastic connecters. The straps pass around the back of the ankle, connect to the toe strap over the top of the foot, and are attached to the top sole on either side of the foot. There is a hook and loop closure across the top of the foot and another across the toes. The cemented top sole, midsole, and outer sole components are made of rubber or plastics.
All of the components are imported from China. In China, the straps are inserted into, but not affixed to, the top sole components. In El Salvador, the unformed upper components are affixed to the top sole by priming, heating, cementing and pressing providing shape and structure. The now formed upper is attached to the midsole, and outer sole components by priming, cementing, heating, and pressing. Finally, the finished footwear is cooled, buffed, trimmed and cleaned.
In your letter, you state that you will be manufacturing a men’s version of the women’s sandal described above. The applicable subheading for the men’s style # 1008645, “Original Universal Sport,” will be 6404.19.3940, Harmonized Tariff Schedule of the United States (HTSUS), which provides for footwear with outer soles of rubber, plastics, leather or composition leather and uppers of textile materials: footwear with outer soles of rubber or plastics: other: footwear with open toes or open heels; footwear that is not less than 10 percent by weight of rubber or plastics: other: other: for men. The general rate of duty will be 37.5 percent ad valorem.
The applicable subheading for the women’s style # 1008645, “Original Universal Sport,” will be 6404.19.3960, Harmonized Tariff Schedule of the United States (HTSUS), which provides for footwear with outer soles of rubber, plastics, leather or composition leather and uppers of textile materials: footwear with outer soles of rubber or plastics: other: footwear with open toes or open heels; footwear that is not less than 10 percent by weight of rubber or plastics: other: other: for women. 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 non-originating materials used in the production of the good undergoes an applicable change in tariff classification specified in subdivision (n) of this note; …
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 29(b)(ii)(A).
General Note 29 (n), Chapter 64, Chapter rule 1 states:
Notwithstanding the tariff classification rules for goods of chapter 64 set forth below, with respect to goods of chapter 64 falling in the following tariff provisions enumerated in this rule for which a rate of duty followed by the symbol “P” in parentheses appears in the “Special” subcolumn rate of duty column 1, an importer may claim preferential tariff treatment under this note for a good of chapter 64 that meets any tariff classification rule for such good set forth in general note 12, 17, 25, 26 or 28 of the tariff schedule:
tariff items 6401.92.30, 6401.92.60, 6401.99.80, 6402.12.00 through 6402.30.30 inclusive, 6402.30.60, 6402.30.90, 6402.91.40, 6402.91.60, 6402.91.70, 6402.99.05 through 6402.99.18, inclusive, and 6402.99.30 through 6402.99.79, inclusive; heading 6403; tariff items 6404.11.20 through 6404.19.15, inclusive, and 6404.19.25 through 6404.20.60, inclusive; and headings 6405 and 6406.
For goods classified in subheading 6404.19.39, General Note 29, Chapter 64.2 requires:
a change to any other tariff item of Chapter 64 from any other subheading.
aIf imported separately, the plastic connectors would be classified under 3926.90.9995, HTSUS, which provides for other articles of plastics. The textile straps of the upper inserted into, but not affixed to, the top sole would be classified in subheading 6406.10.9040, HTSUS, the provision for parts of footwear (including uppers whether or not attached to soles other than outer soles): uppers and parts thereof: other: other: other: other: of textile materials other than cotton: of man-made fibers. The rubber or plastics outer sole would be classified in subheading 6406.20.0000, HTSUS, the provision for outer soles and heels of rubber or plastics. The rubber/plastics midsole components would be classified in subheading 6406.90.3060, HTSUS, the provision for parts of footwear of rubber or plastics.
Based on the facts provided, the men’s and women’s sandals, identified as style # 1008645, “Original Universal Sport,” qualify for preferential treatment. Each of the non-originating components undergoes the required tariff shift and will meet the requirements under the DR-CAFTA General Notes 29(b)(ii)(A). The sandal will therefore be entitled to a free rate of duty upon compliance with all applicable laws, regulations, and agreements.
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].
Sincerely,
Gwenn Klein Kirschner
Director
National Commodity Specialist Division