CLA-2-64:OT:RR:NC:N3:447
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 – Unites States Free Trade Agreement (DR-CAFTA).
Dear Mr. Vasquez:
In your letter dated November 20, 2015, you requested a tariff classification ruling for women’s boots produced in El Salvador from non-originating materials. Your request also concerns the eligibility for preferential duty treatment of finished footwear under the DR-CAFTA.
The submitted finished sample identified as style # 1012534 “Women’s Shaina UGG Boot” is a woman’s, closed toe/closed heel, above-the-ankle, below-the-knee, pull-up with an outer sole of rubber/plastics. It has a height of approximately 12 inches when not cuffed and approximately 7.5 inches when cuffed. You state the upper of the boot, when cuffed, has an external surface area comprised of 55.20 percent suede leather, the foot portion, and 44.80 percent knit textile fabric, comprising the shaft. The boot features a non-functional rubber/plastics strap with a button closure on the lateral side of the shaft and is lined with wool and polyester.
The applicable subheading for style # 1012534 “Women’s Shaina UGG Boot” will be 6403.91.9045, 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 leather: other footwear: covering the ankle: other: other: for other persons: other: for women: other. The rate of duty will be 10 percent ad valorem.
The cow skins, lining materials, textile shaft material and accessories and reinforcements are imported from non-originating countries. In El Salvador, the imported materials are transformed into the finished footwear by cutting, pressing, stitching and cementing.
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; …
The non-originating materials must 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 6403.19.9045, HTSUS, General Note 29, Chapter 64.2 requires:
A change to any other tariff item of Chapter 64 from any other subheading.
The boot is fully assembled in El Salvador from raw or unfinished materials and component parts from originating countries, the USA, and non-originating countries, primarily China, Taiwan and Germany.
Based on the facts provided, style # 1012534 “Women’s Shaina UGG Boot” qualifies for preferential treatment. Each of the non-originating components manufactured into the completed shoe in El Salvador, undergoes the required tariff shifts and will meet the requirements under the DR-CAFTA General Notes 29(b)(ii)(A). If imported separately, the sheets of cow skins/suede and lining materials from Taiwan would be classified outside of chapter 64. The outer soles from China, classified in 6406.20, HTSUS, and the heel counters from Germany, textile shafts and insoles from China, would be classified in the subheadings of 6406.90 HTSUS. The boot 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/.
Importations of this product may be subject to the provision of Section 133 of the Customs Regulations if they copy or simulate a registered trademark, trade name or copyright recorded with U.S. Customs and Border Protection. If you are an authorized importer of the product we recommend notifying your local Customs office prior to importation.
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