CLA-2-62:OT:RR:NC:N3:356
Mr. Alexis Martinez Medina
Sam Sol, S.A.
Km 37.5 Carretera Interamericana
Santiago Sacatepequez
Guatemala
03017
RE: The tariff classification and status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA) of men’s woven trousers from Guatemala
Dear Mr. Martinez Medina:
In your letter dated January 24, 2018, you requested a ruling on the classification and status under the DR-CAFTA of men’s woven trousers from Guatemala. Our response was delayed due to laboratory analysis. The sample garment was destroyed during this analysis and will not be returned.
The submitted sample, for which a style number is not available, is a pair of men’s woven corduroy trousers with a stated fiber content of 98% cotton and 2% spandex. The trousers feature a flat waistband with six belt loops, a zippered fly front opening with hook and one-button closures on the waistband, two slant pockets on the front panels, two rear welt pockets with button closures, and hemmed leg openings.
The applicable subheading for the trousers will be 6203.42.4506, Harmonized Tariff Schedule of the United States (HTSUS), which provides for: Men’s or boys’… trousers,… breeches and shorts (other than swimwear): Trousers,… breeches and shorts: Of cotton: Other: Other: Other: Other: Men’s trousers and breeches: Corduroy. The rate of duty will be 16.6 percent ad valorem.
You state that the trousers are cut, sewn and assembled in Guatemala from fabric of Chinese origin, and that the finished garments will be exported directly from Guatemala to the United States. You assert that the trousers are eligible for preferential duty treatment under the DR-CAFTA because the fabric of their outer shell is described in paragraph 2 of the Office of Textiles and Apparel’s (OTEXA) DR-CAFTA short supply list (Annex 3.25).
General Note (GN) 29, HTSUS, sets forth the criteria for determining whether a good is originating under the DR-CAFTA. General Note 29(b), HTSUS 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--
(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—
each of the nonoriginating materials used in the production of the good undergoes an applicable change in tariff classification specified in subdivision (n) of this note; or
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
(iii) the good was produced entirely in the territory of one or more of the parties to the Agreement exclusively from originating materials.
Since the fabric of the trousers is produced in China, the trousers are not wholly produced within the DR-CAFTA territory, nor do they meet the specific rule of origin, set out in HTSUS, GN 29(n)/62, that applies to their tariff classification.
However, GN 29(m)(viii)(B) states, in pertinent part:
An apparel good of chapter 61 or 62 of the tariff schedule and imported under heading 9822.05.01 of the tariff schedule shall be considered originating if it 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 if the fabric of the outer shell, exclusive of collars and cuffs where applicable, is wholly of—
(1) one or more fabrics listed in U.S. note 20 to subchapter XXII of chapter 98…
HTSUS, Chapter 98, Subchapter XXII, U.S. Note 20(a) states:
Heading 9822.05.01 shall apply to textile or apparel goods of chapters 50 through 63 and subheading 9404.90 that contain any of the fabrics, yarns or fibers set forth herein, are described in general note 29 to the tariff schedule and otherwise meet the requirements of such general note 29. Within HTSUS, Chapter 98, Subchapter XXII, U.S. Note 20(a) and OTEXA’s short supply list for DR-CAFTA (Annex 3.25) is the following designated fabric:
Corduroy fabrics classified in subheading 5801.22, containing 85 percent or more by weight of cotton and containing more than 7.5 wales per centimeter.
Please note that only fabrics meeting the exact description and specifications set out above will be deemed to be commercially unavailable and eligible to be used to qualify products for DR-CAFTA preferential treatment pursuant to GN 29(m)(viii)(B).
The fabric of your submitted sample was tested by the Customs and Border Protection laboratory, and it was determined that it conforms to all of the specifications set out above. Accordingly, the trousers are entitled to a free rate of duty under the DR-CAFTA, because they meet the requirements of HTSUS, GN 29(m)(viii)(B).
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