CLA-2-62:OT:RR:NC:N3:356
Ms. Alexis Martinez Medina
Sam Sol, S.A.
Km 37.5 Carretera Interamerica
Santiago Sacatepequez
Guatemala
03017
RE: The tariff classification and eligibility under the United States-Dominican Republic-Central America Free Trade Agreement (DR-CAFTA) of men’s suits, suit-type jackets, and trousers from Guatemala
Dear Ms. Martinez Medina:
In your undated letter, you requested a ruling on the classification and eligibility under the DR-CAFTA of men’s suits, suit-type jackets, and trousers from Guatemala. Your samples will be returned.
Style “Adam” is a men’s suit-type jacket and Style “Tyler” is a pair of men’s trousers. Styles “Adam” and “Tyler” are constructed from identical 52% worsted wool, 46% polyester, and 2% spandex woven fabric. You state that the average diameter of the wool yarn is 21 microns. You indicate that Styles “Adam” and “Tyler” will be imported under the following scenarios: (1) on the same shipment, in equal quanitities, and in corresponding and compatible sizes; and (2) on separate shipments.
Style “Adam” is constructed from six panels sewn together lengthwise and features a notched collar with lapels; a button hole on the left lapel; a left-over-right, full front opening with two button closures; long, hemmed, vented sleeves with four buttons on each sleeve; a welt pocket on the left chest; two front inset pockets with flaps below the waist; an inner welt pocket on the right front panel; two inner welt pockets on the left front panel; a hemmed bottom with curved edges on the front panels; and two rear vents. The body and sleeves are lined with 100% polyester, woven fabric.
Style “Tyler” features a flat waistband with six belt loops, a button closure, and a metal clasp closure; a zippered, fly front opening with a button closure on the fly placket; an inset coin pocket at the right front waist; two side seam inset pockets at the waist; two rear welt pockets with button closures; and hemmed legs. The upper portion of each front panel is lined with 100% polyester, woven fabric. The waistband, zipper placket, and crotch are lined with 80% polyester, 20% cotton, woven fabric.
Note 3(a), Chapter 62, Harmonized Schedule of the United States (HTSUS) defines a “suit,” in relevant part, as follows:
a set of garments composed of two or three pieces made up, in respect of their outer surface, pieces made up in identical fabric, and comprising:
one suit coat or jacket the outer shell of which, exclusive of sleeves, consists of four or more panels, designed to cover the upper part of the body… and
one garment designed to cover the lower part of the body and consisting of trousers, breeches or shorts (other than swimwear)… having neither braces nor bibs.
This note goes on to state that “all of the components of a “suit” must be… of corresponding or compatible size.”
The subject garments meet these requirements. Accordingly, the applicable subheading for Styles “Adam” and “Tyler,” when imported on the same shipment, in equal quantities, and in corresponding or compatible sizes, will be 6203.11.9000, HTSUS, which provides for: Men’s or boys’ suits, ensembles, suit-type jackets, blazers, trousers, bib and brace overalls, breeches and shorts (other than swimwear): Suits: Of wool or fine animal hair: Other: Other. The rate of duty will be 17.5% ad valorem.
The applicable subheading for Style “Adam,” when imported separately or without a matching component on the shipment, will be 6203.31.9020, HTSUS, which provides for: Men’s or boys’ suits, ensembles, suit-type jackets, blazers, trousers, bib and brace overalls, breeches and shorts (other than swimwear): Suit-type jackets and blazers: Of wool or fine animal hair: Other: Other. The duty rate will be 17.5% ad valorem.
The applicable subheading for Style “Tyler,” when imported separately or without a matching component on the shipment, will be 6203.41.6010, HTSUS, which provides for: Men’s or boys’ suits, ensembles, suit-type jackets, blazers, trousers, bib and brace overalls, breeches and shorts (other than swimwear): Trousers, bib and brace overalls, breeches and shorts: Of wool or fine animal hair: Other: Trousers, breeches and shorts: Other: Other: Trousers and breeches: Men’s. The duty rate will be 41.9 cents/kg + 16.3% ad valorem.
The manufacturing operations for Styles “Adam” and “Tyler” are as follows:
Wool and polyester fibers are cleaned, carded, combed, and spun into wool/polyester yarn in Mexico.
Spandex filament yarn is produced in China and imported into Mexico.
In Mexico, the wool/polyester and spandex yarns are woven into fabric that is used to produce the outer shells of the garments. Also in Mexico, the fabric is dyed.
The wool, polyester, and spandex fabric is shipped to Guatemala.
The pocket bag fabric, the fabrics used for the linings of the garments, and polyester thread used to sew the garments are produced in China and imported into Guatemala.
In Guatemala, the fabrics are cut, sewn and assembled into the finished garments.
The garments are exported from Guatemala directly to the United States.
General Note (GN) 29, HTSUS, sets forth the criteria for determining whether a good is originating under the DR-CAFTA. GN 29(b), HTSUS (19 U.S.C. § 1202) states: 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—
the good is a good wholly obtained or produced entirely in the territory of one or more of the parties to the Agreement;
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; or (B) the good otherwise satisfies any applicable regional value content or other requirements specified in subdivision (n) of this note; and the good satisfies all other applicable requirements of this note; or
the good was produced entirely in the territory of one or more of the parties to the Agreement exclusively from originating materials.
As Styles “Adam” and “Tyler” contain non-originating materials, they must undergo the applicable changes in tariff classification specified in GN 29(n) in order to meet the requirements of GN 29(b)(ii)(A). For goods classified in subheading 6203.11 (i.e., Styles “Adam” and “Tyler,” when imported on the same shipment, in equal quantities, and in corresponding or compatible sizes), GN 29(n)/62.9 requires:
A change to subheadings 6203.11 through 6203.12 from any other chapter, except from headings 5111 through 5113, 5204 through 5212, 5310 through 5311, chapter 54, headings 5508 through 5516, 5801 through 5802 or 6001 through 6006, provided that: (A) the good is cut or knit to shape, or both, and sewn or otherwise assembled in the territory of one or more of the parties to the Agreement, and
(B) any visible lining material contained in the apparel article must satify the requirements of chapter rule 1 to chapter 62.
For goods classified in subheading 6203.31 (i.e.., Style “Adam” when imported separately or without a matching component), GN 29(n)/62.12 requires: A change to subheadings 6203.31 through 6203.33 from any other chapter, except from headings 5111 through 5113, 5204 through 5212, 5310 through 5311, chapter 54, headings 5508 through 5516, 5801 through 5802 or 6001 through 6006, provided that: (A) the good is cut or knit to shape, or both, and sewn or otherwise assembled in the territory of one or more of the parties to the Agreement, and
(B) any visible lining material contained in the apparel article must satify the requirements of chapter rule 1 to chapter 62.
For goods classified in subheading 6203.41 (i.e., Style “Tyler” when imported separately or without a matching component), GN 29(n)/62.15 requires:
A change to subheadings 6203.41 through 6203.49 from any other chapter, except from headings 5111 through 5113, 5204 through 5212, 5310 through 5311, chapter 54, headings 5508 through 5516, 5801 through 5802 or 6001 through 6006, provided that the good is cut or knit to shape, or both, and sewn or otherwise assembled in the territory of one or more of the parties to the Agreement.
In addition to the above-noted tariff shift rules, the goods must also meet any applicable chapter rules found in GN 29(n), Chapter 62, as well as any applicable rules for textile and apparel goods set out in GN 29(d).
GN 29(n), Chapter 61, Chapter rule 2 states: For purposes of determining whether a good of this chapter is originating, the rule applicable to that good shall only apply to the component that determines the tariff classification of the good and such component must satisfy the tariff change requirements set out in the rule for that good.
The component that determines the classifications of the subject goods is the 52% wool, 46% polyester, and 2% spandex woven fabric. Therefore, this fabric must satisfy the tariff shift rules of GN 29(n)/62.12 and GN 29(n)/62.15.
GN 29(d)(i) sets out additional rules applicable to the subject goods, in relevant part, as follows:
A textile or apparel good that is not an originating good under the terms of this note, because certain fibers or yarns used in the production of the component of the good that determines the tariff classification of the good do not undergo an applicable change in tariff classification set out in subdivision (n) of this note, shall be considered an originating good if—
the total weight of all such fibers or yarns in that component is not more than ten percent of the total weight of that component…
Notwithstanding the preceding sentence, a textile or apparel good containing elastomeric yarn in the component of the good that determines the tariff classification of the good shall be considered to be an originating good only if such yarns are wholly formed in the territory of a party to the Agreement.
The spandex filament yarn, produced in China, is classified in Chapter 54, HTSUS. This yarn fails to satisfy the tariff shift requirements set out in GN 29(n)/62.12 and GN(n)/62.15. Further, because spandex is an elastomeric yarn in the component of the goods that determine their tariff classifications (i.e., the 52% wool, 46% polyester, and 2% spandex woven fabric), this fabric fails to meet the requirements of GN 29(d)(i).
Based on the facts provided, Styles “Adam” and “Tyler,” when imported on the same shipment, in equal quantities, and in corresponding or compatible sizes, as well as Styles “Adam” and “Tyler,” each when imported separately or without a matching component, fail to qualify for DR-CAFTA preferential treatment, because they do not meet the requirements of General Note 29(b)(ii)(A), HTSUS. The merchandise will not be entitled to a free rate of duty under the DR-CAFTA.
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 [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division