CLA-2-62:OT:RR:NC:N3:360
Mr. Gerardo Aguilar
Kaltex Group
350 5th Avenue
New York, NY 10118
RE: The tariff classification of yarn and the tariff classification and status under the United States-Colombia Trade Promotion Agreement (CTPA) of women’s trousers from Colombia
Dear Mr. Aguilar:
In your letter dated January 22, 2016, you requested a ruling on the classification of yarn and the classification and status of women’s trousers under the CTPA. Our response was delayed due to laboratory analysis by the U.S. Customs and Border Protection laboratory, during which the submitted samples were destroyed.
You submitted a sample of a yarn put up on a large cone support. You describe the yarn as being processed in Fadis machines and consists of an elastomeric filament core with a textured polyester filament yarn covering the core in a spiral direction. According to the terms of Note 4 to Section XI, Harmonized Tariff Schedule of the United States (HTSUS), the yarn does not meet the definition of “put up for retail sale.”
You state that the yarn should be classified under heading 5606. However, the Customs laboratory examined a sample of the yarn, and its findings are contrary to your description of the merchandise. The report noted the following:
The sample, a yarn on a bobbin is composed of elastomeric core yarn (13 percent by weight) which is covered by textured polyester filament (97 percent by weight) by air entanglement process. The yarn is subject to a false twist process. The sample is not a gimped or braided yarn. The sample has an average diameter of .276 mm and weighs 209.6 decitex.
The submitted garment is a pair of women’s trousers. In your letter, you state that the trousers are constructed from 75% cotton, 22% polyester, and 3% elastomeric woven fabric. Our laboratory analysis indicates that the garment is constructed from 76.2% cotton, 20.6% polyester, and 3.2% elastomeric woven fabric. The garment features a left over right front fly opening with a zipper closure and a metal button on a flat waistband, five belt loops, a rear yoke, two rear patch pockets, front pockets, and hemmed leg openings.
The applicable subheading for the air-entangled, textured polyester yarn will be 5402.31.6000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for synthetic filament yarn, not put up for retail sale, textured yarn, of nylon or other polyamides, measuring per single yarn not more than 500 decitex, multiple (folded) or cabled yarn. The duty rate will be 8 percent ad valorem.
The applicable subheading for the women’s trousers will be 6204.62.8011, HTSUS, which provides for Women’s or girls’ suits, ensembles, suit-type jackets, blazers, dresses, skirts, divided skirts, trousers, bib and brace overalls, breeches and shorts (other than swimwear): Trousers, bib and brace overalls, breeches and shorts: Of cotton: Other: Other: Other: Other: Other: Women’s trousers and breeches: Blue denim. The rate of duty will be 16.6 percent ad valorem.
You have described the manufacturing and assembly of the garment as follows:
1. The denim fabric will be manufactured in Columbia.
2. This fabric will be produced with cotton yarns made in Colombia from cotton fibers imported from the United States or obtained in Columbia and from air-entangled, textured polyester yarn made in Mexico.
3. The trousers will be cut and sewn in Columbia and then exported directly to the United States.
General Note 34, HTSUS, sets forth the criteria for determining whether a good is originating under the CTPA. General Note 34(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 Colombia or of the United States under the terms of this note if–
(i) the good is wholly obtained or produced entirely in the territory of Colombia or of the United States, or both;
(ii) the good is produced entirely in the territory of Colombia 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
(iii) the good is produced entirely in the territory of Colombia or of the United States, or both, exclusively from materials described in subdivisions (i) or (ii), above.
As the good contains nonoriginating materials, the yarn produced in Mexico, it would have to undergo an applicable change in tariff classification in order to meet the requirements of GN 34(b)(ii)(A). For goods classified under subheading 6204.62, this requires:
A change to subheadings 6204.61 through 6204.69 from any other chapter, except from headings 5106 through 5113, 5204 through 5212, 5307 through 5308, 5310 through 5311 or 5401 through 5402, subheadings 5403.20, 5403.33 through 5403.39, 5403.42 through heading 5408, or headings 5508 through 5516, 5801 through 5802 or 6006 through 6006, provided that the
good is cut or knit to shape, or both, and sewn or otherwise assembled in the territory of Colombia or of the United States, or both.
The nonoriginating material used in the production of the garment is classified in subheading 5402.31, HTSUS. As such, the fabric does not meet the terms of the tariff shift rule.
The garment does not qualify for preferential treatment under the CTPA because (a) it will not be wholly obtained or produced entirely in the territory of Colombia or of the United States; (b) one or more of the non-originating materials used in the production of the good will not undergo the change in tariff classification required by General Note 34; and (c) it will not produced entirely in the territory of Colombia or of the United States, or both.
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 the World Wide Web at https://hts.usitc.gov/current.
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 classification of the trousers or the eligibility for preferential treatment under the CTPA, contact National Import Specialist Kimberly Rackett via email at [email protected]. If you have any questions regarding the classification of the yarn, contact National Import Specialist Adleasia Lonesome via email 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,
Steven A. Mack
Director
National Commodity Specialist Division