CLA-2-64:OT:RR:NC:N2:447
Mr. John T. Hyatt
The Irwin Brown Company
212 Chartres Street
New Orleans, LA 70130
RE: The tariff classification of footwear produced in the Dominican Republic and the eligibility for preferential treatment under the Dominican Republic – Central America – United States Free Trade Agreement (DR-CAFTA).
Dear Mr. Hyatt:
In your letter dated July 3, 2017, you requested a tariff classification ruling on behalf of your client Co Expo, Ltd., Grand Cayman, British West Indies. Your request concerns the eligibility for preferential duty treatment of shoe cover boots under the DR-CAFTA. A sample of a shoe cover boot identified as Style # 14 H3 3364 TAFF 01 was included with your request. The sample will be returned to you.
Style # 14 H3 3364 TAFF 01 is a unisex closed- toe, closed- heel, above-the-ankle, below-the-knee, approximately 19 inches high shoe cover boot. The upper is made from 100 percent textile material identified by you as polyester taffeta. The topline of the shoe cover boot features sewn-in elastic, and an adjustable webbing tab with snaps. Affixed to the lateral and medial side is a textile webbing strap with a plastic side-pinch buckle closure across the top of the foot. The shoe cover boot has an outer sole made from textile material that is coated with rubber or plastics. You indicate that it will be used in a “clean room” environment such as a laboratory or a food service facility. It is available in sizes XS through 3XL. The shoe cover is not considered to be protective. The value is stated as over $6.50 but not over $12/pair.
The applicable subheading for Style # 14 H3 3364 TAFF 01 will be 6404.19.8960, 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 textile materials: footwear with outer soles of rubber or plastics: other: other: valued over $6.50 but not over $12/pair: other: for women. The rate of duty will be 90 cents/pair + 20 percent ad valorem.
The non-originating polyester taffeta fabric, originating from China, represents 7.962 percent of the total cost of the shoe cover. The secondary originating fabric from the United States represents 42.933 percent. The cutting costs from El Salvador represents .38 percent of the total cost, while the assembly cost is 26.273 percent of total cost. The findings, labels, ID tag, stainless steel sockets/prongs (snaps), and elastic, ribbon, bag, sticker box and tape are originating from the United States or El Salvador.
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.
Based on the facts provided, Style # 14 H3 3364 TAFF 01, qualifies for preferential duty treatment. Each of the textile materials such as the polyester taffeta sourced from China, and the textile sole materials from the United States manufactured into a completed shoe cover in El Salvador undergoes a required tariff shift and meets the requirements under the DR-CAFT General Notes 29(b)(ii)(A). The shoe cover 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 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 above, contact National Import Specialist Stacey Kalkines at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division