CLA-2-61:OT:RR:NC:N3:361
Ms. Jo Bronson Harris
Sandler, Travis & Rosenberg, P.A.
1000 NW 57th Court, Suite 600
Miami, Florida 33126
RE: The tariff classification and status under the Haiti Hemispheric Opportunity through Partnership Encouragement Act of 2008 (HOPE II) of a woman’s tank top from Haiti
Dear Ms. Harris:
In your letter dated September 13, 2016, you requested a tariff classification ruling on behalf of your client lululemon usa inc. The sample will be returned to you, as requested.
Style LW1960S is a tank top composed of 58 percent nylon, 38 percent polyester and 4 percent X-Static nylon knit fabric. The seamless garment is sleeveless, extends below the waist and features a front scoop neckline, shoulder straps measuring less than 2 inches in width, a racer back style, a reflective heat sealed “Lulu” logo just below the back neckline and a straight rib knit self-start bottom.
The applicable subheading for style LW1960S will be 6109.90.1065, Harmonized Tariff Schedule of the United States (HTSUS), which provides for T-shirts, singlets, tank tops and similar garments, knitted or crocheted: Of other textile materials: Of man-made fibers: Women’s or girls’: Tank tops and singlets: Women’s. The duty rate will be 32 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 https://hts.usitc.gov/current.
With respect to the eligibility of the the woman’s tank top for preferential duty treatment under HOPE II,
The manufacturing operations are as follows:
The main body of the garment is knit in Sri Lanka and imported into Haiti in the form of a tubular panel. The panel contains a self-hemmed bottom and clear and continuous lines of demarcation, formed by a change in knit pattern, that define the neckline and armholes of the garment.
The fabric for the capping is knit in Sri Lanka and imported into Haiti in the form of tubes.
In Haiti, the main body and capping are cut from their respective tubular panels along the lines of demarcation.
The capping is added and the main body is sewn into finished garments in Haiti.
The garments are exported from Haiti or the Dominican Republic directly to the United States.
Apparel articles of chapter 61 described in U.S. note 6(j) to this subchapter and imported directly from Haiti or the Dominican Republic during any 1-year period specified in U.S. Note 6(j)(iii) to this subchapter, subject to the limitations provided in such U.S. note 6(j)(iii) to this subchapter.
Chapter 98, Subchapter XX , HTSUS, U.S. Note 6(j)(i) provides as follows:
The preferential treatment provided in heading 9820.61.35 shall be extended to any apparel article classifiable under chapter 61 of the tariff schedule that is wholly assembled, or knit-to-shape, in Haiti from any combination of fabrics, fabric components, components knit-to-shape or yarns and is imported directly from Haiti or the Dominican Republic, subject to subdivisions (j)(ii), (j)(iii) and (j)(iv) of this note, without regard to the source of the fabric, fabric components, components knit-to-shape or yarns from which the article is made.
HOPE II provides preferential treatment to certain knitted apparel and made from non-originating fabrics as described in chapter 98, Subchapter XX, U.S. Note 6(j)(i). The 9820.61.35, HTSUS, provision indicates that the soure of the raw materials does not affect eleigiblity, so the knit-to-shape component may come from any source. In addition subheading 6109.90.1065 is not excluded by chapter 98, Subchapter XX , U.S. Note 6(j)(ii).
Section 10.842 of the Customs Regulations (19 CFR 10.842) contains definitions of various terms used in the provisions applicable for preferential treatment under Hope II.
The term knit-to-shape articles is defined in 19 CFR 10.842 (j). The term “knit-to-shape is when used with reference to apparel articles means any apparel article of which 50 percent or more of the exterior surface area is form by major parts that have been knitted or crocheted directly to the shape used in the apparel article.
The term major parts is defined in 19 CFR 10.842 (k)(1). The term ‘major parts” means the integral components of an apparel article but does not include collars, cuffs, waistbands, plackets, pokcets, linings, paddings, trim, accessories, or similar parts or components.
The term wholly assembled is defined in 19 CFR 10.842 (p). The term "wholly assembled in Haiti" means that all components, of which there must be at least two, preexisted in essentially the same condition as found in the finished good and were combined to form the finished good in a Haiti. Minor attachments and minor embellishments (for example, appliqués, beads, spangles, embroidery, buttons) not appreciably affecting the identity of the good, and minor subassemblies (for example, collars, cuffs, plackets, pockets), will not affect the status of a good as "wholly assembled" in Haiti or one or more eligble countries.
Based on the facts provided, style LW1960S does not qualify for preferential tariff treatment under subheading 9820.61.35, HTSUS. Since the garment contains only one component and a minor attachment (capping), it is not considered “wholly assembled”. As a result, the garment is not eligible for preferential tariff treatment under HOPE II.
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, contact National Import Specialist Antoinette Peek-Williams @.cbp.dhs.gov. If you have any questions regarding the eligibility under Hope II, contact National Import Specialist Rosemarie Hayward at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division