CLA-2-61:OT:RR:NC:N3:356
Ms. Jo Bronson Harris
Sandler, Travis and Rosenberg, P.A.
1000 NW 57th Court, Suite 600
Miami, FL 33126
RE: The tariff classification and status under the Haiti Hemispheric Opportunity through Partnership Encouragement Act of 2008 (HOPE II) of men’s pullovers from Haiti.
Correction to Ruling Number N280898.
Dear Ms. Harris:
This replaces Ruling Number N280898, dated January 5, 2017, which contained one instance of a clerical error in the style number of the subject garment. A complete corrected ruling follows.
In your letter dated October 26, 2016, you requested a tariff classification ruling on behalf of your client, lululemon usa, inc. The submitted samples were destroyed during analysis and will not be returned.
Style LM1XYGS is a men’s pullover. You state that as imported, the fiber content of the garment will be 50% polyester, 48% nylon, and 2% silver coated nylon. The silver coated nylon will not be twisted with the other yarns, but will be inserted separately into the fabric of the garment.
The main body of Style LM1XYGS is constructed of a combination jersey and mesh, tubular knit fabric. The jersey knit portion of the fabric measures 29 stitches per 2 centimeters counted in the horizontal direction, and the mesh knit portion measures 30 stitches per 2 centimeters counted in the horizontal direction. The jersey knit fabric covers the majority of the front of the garment. The mesh knit portion covers the sides and back of the garment and a small triangular area below the front center neckline. Style LM1XYGS is sleeveless and features oversized armholes; a crew neckline; a small, raised “X” design below the center front neckline; shoulders of jersey knit fabric; overlock stitching at the neckline and shoulder seams; three small, contrasting color embroidered stripes on the left front shoulder seam; a small heat seal logo at the center rear neck; and a straight, hemmed bottom.
The applicable subheading for Style LM1XYGS will be 6110.30.3053, Harmonized Tariff Schedule of the United States (HTSUS), which provides for sweaters, pullovers, sweatshirts, waistcoats (vests) and similar articles, knitted or crocheted: of man-made fibers: other: other: other: other: other: men’s or boys’: other. The rate of duty will be 32 percent ad valorem.
Your request also concerns the eligibility of Style LM1XYGS 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 shoulders of the garment is knit in Sri Lanka and imported into Haiti in the form of tubes. Each tube is used to produce the shoulder components of several garments.
The fabric for the neckband is knit in Sri Lanka and imported into Haiti in the form of tubes. Each tube is used to produce the neckbands of six garments.
The fabric for the armhole capping is knit in Sri Lanka and imported into Haiti in the form of tubes. Each tube is used to produce the armhole capping of several garments.
In Haiti, the main body of the garment is cut from the tubular panel along its lines of demarcation. Also in Haiti, each tube of shoulder fabric is cut into the size and shape of multiple shoulder components; each tube of neckband fabric is cut into six individual strips to form the neckbands of six garments; and each tube of capping fabric is cut to form the armhole capping of several garments.
Each finished garment is assembled in Haiti from one main body component, two shoulder components, one neckband, and two pieces of armhole capping.
The garments are exported from Haiti or the Dominican Republic directly to the United States.
Based on the classification provided and the manufacturing scenario described above, the applicable subheading to determine eligibility under HOPE II is 9820.61.35, HTSUS, which provides for:
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).
U.S. Note 6(j), Subchapter XX, Chapter 98, HTSUS, provides as follows:
(i) 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 Dominican Republic, subject to subdivisions (j)(ii), (j)(iii) and (j)(iv) of this note, without regard to source of the fabric, fabric components, components knit-to-shape or yarns from which the article is made.
(ii) the preferential treatment described in subdivision (j)(i) of this note shall not apply to the following: (A) the following apparel articles of cotton, for men or boys, that are classifiable under subheading 6109.10.00 of the tariff schedule: (1) all white T-shirts, with short hemmed sleeves and hemmed bottom with crew or round neckline or with V-neck and with a mitered seam at the center of the V, and without pockets, trim or embroidery; (2) all white singlets, without pockets, trim or embroidery; (3) other T-shirts, but not including thermal undershirts; (B) T-shirts for men or boys that are classifiable under subheading 6109.90.10;
(C) The following apparel articles of cotton, for men or boys, that are classifiable under subheading 6110.20.20 of the tariff schedule:
(1) sweatshirts; or (2) pullovers, other than sweaters, vests or garments imported as part of playsuits; or
(D) sweatshirts for men or boys, of man-made fibers and containing less than 65 percent by weight of man-made fibers, that are classifiable under subheading 6110.30.30 of the tariff schedule.
(iii) Except as provided in subdivision (h)(iv) of this note, the preferential treatment described in subdivision (j)(i) of this note shall be extended, in the 1-year period beginning October 1, 2008, and in each of the eleven succeeding 1-year periods, to not more than 70,000,000 square meter equivalents of apparel articles described in such subdivision.
The term “wholly assembled in Haiti,” as defined in Section 10.842(p) of the Customs Regulations (19 CFR 10.842), 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 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.”
Based on the facts provided, Style LM1XYGS is wholly assembled in Haiti and is therefore eligible for preferential treatment under HOPE II. However, it is subject to the quantitative limitations set forth in U.S. Note 6(j)(iii), Subheading XX, Chapter 98, HTSUS.
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 ruling, contact National Import Specialist Maryalice Nowak at maryalice.nowak.cbp.dhs.gov.
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division