CLA-2-61:OT:RR:NC:N3:357
Ms. Patricia Junco
Seaboard Solutions
7860 NW 80th Street
Miami, FL 33166
RE: The tariff classification and status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA) of a men’s and women’s jackets from El Salvador
Dear Ms. Junco:
In your letter dated November 6, 2015, you requested a ruling on the tariff classification and eligibility of two knit jackets under DR-CAFTA. Your samples will be returned.
Styles 18503 and 18504 are a men’s and women’s jackets, respectively, composed of a 100% polyester knit fabric that is brushed on the inside surface. The fully lined jackets each feature a full front opening secured with a zipper closure extending to the top of the collar, long tapered sleeves with elasticized cuffs, zippered pockets below the waist and a close-fitting hemmed bottom.
The applicable subheading for style 18503 will be 6101.30.2010, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Men’s or boys’ overcoats, carcoats, capes, cloaks, anoraks (including ski-jackets), windbreakers and similar articles, knitted or crocheted, other than those of heading 6103: Of man-made fibers: Other: Other: Men’s. The rate of duty will be 28.2 percent ad valorem.
The applicable subheading for style 18504 will be 6102.30.2010, HTSUS, which provides for Women’s or girls’ overcoats, carcoats, capes, cloaks, anoraks (including ski-jackets), windbreakers and similar articles, knitted or crocheted, other than those of heading 6104: Of man-made fibers: Other: Other: Women’s. The rate of duty will be 28.2 percent 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 World Wide Web at http://www.usitc.gov/tata/hts/.
With respect to the eligibility of both garments for preferential treatment under DR-CAFTA, you have described the manufacturing process as follows:
Yarn of heading 5402, HTSUS, is spun or extruded in the United States;
Fabric of heading 6001, HTSUS, is knit from that yarn in the United States;
Fabric is cut into components and sewn or otherwise assembled into a jacket in El Salvador;
Sewing thread, or yarn used as sewing thread for assembly, of heading 5402, HTSUS, is formed and finished in Costa Rica;
Fabric of subheading 5407.42, HTSUS, used for the visible lining is formed and finished in Taiwan;
Fabric used for the pocket bag fabric is formed and finished in Guatemala from yarns formed and finished in El Salvador;
Finished garments are shipped directly to the United States.
General Note (GN) 29 (b)(ii)(A) states, in pertinent part:
For 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—
…
(ii) the good was produced entirely in the territory of one or more of the parties to the Agreement, and—
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…
The applicable tariff shift rule applicable to the men’s jacket, style 18503, is GN 29 (n) 61.1, which reads:
A change to subheadings 6101.10 through 6101.30 from any other chapter, except from headings 5111 to 5113, 5204 through 5212, 5310 through 5311, chapter 54, headings 5508 through 5516 or 6001 through 6008, provided that:
the good is cut or knit to shape, or both, sewn or otherwise assembled in the territory of one or more of the parties, and
any visible lining material contained in the apparel article must satisfy the requirements of chapter rule 1 for chapter 61.
The applicable tariff shift rule applicable to the women’s jacket, style 18504, is GN 29 (n) 61.3B, which reads:
A change to subheading 6102.30 from any other chapter, except from headings 5111 to 5113, 5204 through 5212, 5310 through 5311, chapter 54, headings 5508 through 5516 or 6001 through 6008, provided that:
the good is cut or knit to shape, or both, sewn or otherwise assembled in the territory of one or more of the parties, and
any visible lining material contained in the apparel article must satisfy the requirements of chapter rule 1 for chapter 61.
In addition to satisfying the product-specific rules noted above, the DR-CAFTA chapter rules 1 (visible lining fabric), 4 (sewing thread) and 5 (pocket bag fabric) of GN 29 (n) chapter 61 must also be met for each garment. The applicable chapter rules state:
Chapter rule 1. Except for fabrics classified in tariff items 5408.22.10, 5408.23.11, 5408.23.21 or 5408.24.10, the fabrics identified in the following headings and subheadings, when used as visible lining material in certain men’s and women’s suits, suit-type jackets, skirts, overcoats, carcoats, anoraks, windbreakers and similar articles, must be both formed from yarn and finished in the territory of one or more of the parties to the Agreement:
“…, 5407.42 through 5407.44,…”
Chapter rule 4. Notwithstanding chapter rule 2 of this chapter, a good of this chapter… containing sewing thread of heading 5204, 5401, or 5508 or yarn of heading 5402 used as sewing thread, shall be considered originating only if such sewing thread or yarn is both formed and finished in the territory of one or more of the parties to the Agreement.
Chapter rule 5. Notwithstanding chapter rule 2 of this chapter, a good of this chapter…that contains a pocket or pockets shall be considered originating only if the pocket bag fabric has been formed and finished in the territory of one or more of the parties to the Agreement from yarn wholly formed in the territory of one or more of the parties to the Agreement.
As you state the fabric used for the visible lining material for both men’s style 18503 and women’s style 18504 is formed and finished in Taiwan, and Taiwan is a not party to the DR-CAFTA, these garments do not satisfy the requirements of GN 29 (n) chapter rule 1. Therefore, styles 18503 and 18504 are not eligible for preferential treatment under DR-CAFTA.
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 Natalie Hanson via email at [email protected].
Sincerely,
Gwenn Klein Kirschner
Director
National Commodity Specialist Division