CLA-2-63:OT:RR:NC:N3:349
Ms. Ania Siwik
FA Ventures dba Smart Go Logo dba SFC Corporation
2151 Michelson Dr., Suite 236
Irvine, CA 92612
RE: The tariff classification and status under the United States-Korea Free Trade Agreement (UKFTA) of cleaning cloths from Korea
Dear Ms. Siwik:
In your letter dated October 30, 2015 you requested a ruling on the marking of cleaning cloths and their status under the UKFTA. An unmarked sample of the cleaning cloth and photographs of the marking on the carton were provided with the request. The classification of this item and the country of origin were ruled on under NY Ruling N266569.
The submitted sample is a microfiber cleaning cloth. The cleaning cloth is made from 80 percent polyester and 20 percent polyamide printed knit fabric. It measures approximately 5 ¾ X 7 ½ inches and has pinked edges. You indicate the cloth is suitable for cleaning optical lenses, phones and computer screens.
You state the cleaning cloth is knitted from drawn textured yarns of chapter 54, Harmonized Tariff Schedule of the United States (HTSUS). You state the polyester and polyamide raw materials originate in South Korea and that the extrusion, spinning, knitting, cutting and printing processes are all done in South Korea.
This office previously determined the applicable tariff provision for the cleaning cloth to be 6307.10.2030, HTSUS, which provides for “Other made up articles, including dress patterns: Floorcloths, dishcloths, dusters and similar cleaning cloths: Other: Other.” The general rate of duty will be 5.3 percent ad valorem. See NY Ruling N266569.
General Note 33, HTSUS, sets forth the criteria for determining whether a good is originating under the UKFTA. General Note 33(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), (n) and (o) thereof, a good imported into the customs territory of the United States is eligible for treatment as an originating good of a UKFTA country under the terms of this note if—
the good is a good wholly obtained or produced entirely in the territory of Korea or of the United States, or both;
the good was produced entirely in the territory of Korea 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 was produced entirely in the territory of Korea or the United States, or both, exclusively from materials described in subdivisions (i) or (ii), above.
For the purposes of this note, the term “UKFTA country” refers only to Korea or to the United States.
You state that you believe the goods are “wholly obtained and produced in Korea” and meet preference criterion “A”. However, you have not provided sufficient detail to show that the cloths meet the definition of “wholly obtained or produced entirely in the territory of Korea or the United States, or both” as defined under GN 33(c)(i).
Next, we considered whether the goods meet the product specific rule under GN 33(o)/63.4. For goods classified under heading 6307, General Note 33(o)/63.4 requires:
A change to headings 6304 through 6308 from any other chapter, except from headings 5106 through 5113, 5204 through 5212, 5307 through 5308, 5310 through 5311 or 5401 through 5402, subheadings 5403.33 through 5403.39 or 5403.42 through heading 5408 or headings 5508 through 5516, 5801 through 5802 or 6001 through 6006, provided that the good is both cut (or knit to shape) and sewn or otherwise assembled in the territory of Korea or the United States, or both.
Based on the facts provided, the cleaning cloths qualify for UKFTA preferential treatment, because they will meet the requirements of HTSUS General Note 33(o), 63.4. The goods will, therefore, be entitled to a Free rate of duty under the UKFTA 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/.
You have also requested a marking ruling. You state that the cleaning cloths are imported in shipping cartons that are marked, “Made in Korea” and that there are no other markings on the cloths themselves or on any retail packaging. You believe the ultimate purchaser of the product will be the U.S. companies that purchase cartons of the cleaning cloths to hand out to clients as gifts or promotional items.
Section 304 of the Tariff Act of 1930, as amended (19 U.S.C.1304), provides that, unless excepted, every article of foreign origin imported into the United States shall be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article (or container) will permit, in such a manner as to indicate to the ultimate purchaser in the United States the English name of the country of origin of the article. Congressional intent in enacting 19 U.S.C. 1304 was "that the ultimate purchaser should be able to know by an inspection of the marking on the imported goods the country of which the goods is the product. The evident purpose is to mark the goods so that at the time of purchase the ultimate purchaser may, by knowing where the goods were produced, be able to buy or refuse to buy them, if such marking should influence his will." United States v. Friedlaender & Co., 27 CCPA 297 at 302 (1940).
19 CFR section 134.1(d), Customs Regulations (19 CFR 134.1(d)), defines the "ultimate purchaser" as generally the last person in the United States who will receive the article in the form in which it was imported. Customs Regulations, 19 CFR 134.1(d)(4), specifies that if the imported article is distributed as a gift the recipient is the "ultimate purchaser".
Accordingly, we find that the marking of the cleaning cloths is not acceptable. The cleaning cloths must be marked permanently, legibly and conspicuously to indicate the country of origin to the ultimate purchaser, the recipient of the give-away cleaning cloth.
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 Kim Wachtel 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