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. The submitted sample is identified as style # 14 H2 3376 TAFF 01. The sample will be returned to you. Your request concerns the eligibility for preferential duty treatment of shoe cover boots under the DR-CAFTA.
The submitted sample identified as style # 14 H2 3376 TAFF 01 is a closed toe/closed heel, above-the-ankle, below-the-knee shoe cover boot with an outer sole of textile material coated with rubber/plastics. The external surface area of the upper (ESAU) is taffeta polyester textile material. The shoe cover boot measures approximately 16 inches high. The footwear is designed to be worn in a clean room environment such as a laboratory or food service facility. You state the value is $8.56 per pair.
The applicable subheading for style # 14 H2 3376 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 originates from China representing 7.649 percent of the total cost of the shoe cover. The secondary originating fabric from the United States represents 40.623 percent. The cutting and assembly costs in El Salvador represents 28.548 percent of total cost. The findings, labels, ID tag, stainless steel sockets/prongs, elastic, ribbon, bag, sticker box and tape are originating from El Salvador or the United States.
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 H2 3376 TAFF 01, qualifies for preferential duty treatment. Each of the textile materials such as polyester taffeta sourced from China and textile sole materials from the United States, and manufactured into completed shoe covers in El Salvador undergoes a required tariff shift and will meet the requirements under the DR-CAFT General Notes 29(b)(ii)(A). The shoe covers will therefore be entitled to free rates 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