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 eligibility under the United States-Dominican Republic-Central America Free Trade Agreement (DR-CAFTA) of men’s suit-type jackets and trousers from Guatemala
Dear Mr. Martinez Medina:
In your letter dated January 17, 2018, you requested a ruling on the classification and eligibility under the DR-CAFTA of men’s suit-type jackets and trousers from Guatemala. Your samples were destroyed during this analysis and will not be returned.
Style “Tofan” is a men’s suit-type jacket constructed from 68% polyester, 28% rayon, and 4% elastane, woven fabric. The garment is constructed of 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 inset pockets with flaps below the waist; two inner inset pockets on the left front panel; an inner inset pocket with a flap and button closure on the right front panel; two rear vents; and a hemmed bottom with curved edges on the front panels. The body and sleeves are lined with 100% polyester, woven fabric.
Style “Megan” is pair of men’s trousers constructed from 68% polyester, 28% rayon, and 4% elastane, woven fabric. The garment features a zippered, fly front opening with hook and button closures on the waistband, six belt loops, two side seam pockets, two rear inset pockets with button closures, and hemmed leg openings.
The applicable subheading for Style “Tofan” will be 6203.33.2010, Harmonized Tariff Schedule of the United States (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 synthetic fibers: Other: Men’s. The rate of duty will be 27.3% ad valorem.
The applicable subheading for Style “Megan” will be 6203.43.9010, 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 synthetic fibers: Other: Other: Other: Other: Other: Other: Trousers and breeches: Men’s. The rate of duty will be 27.9% ad valorem.
Concerning your inquiry regarding the eligibility of Styles “Tofan” and “Megan” under the DR-CAFTA, you state that the garments are cut and sewn in Guatemala of Chinese-origin fabric. You further advise that this fabric is designated by the Office of Textiles and Apparel (OTEXA) as short supply number 89.
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 (19 U.S.C. § 1202) states, in pertinent part:
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 nonoriginating 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
(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 garments is produced in China, the garments are neither wholly obtained or produced within the DR-CAFTA territory, nor produced within the DR-CAFTA territory exclusively from origainating materials. Further, Styles “Tofan” and “Megan” do not meet the applicable tariff shift rules that apply to their tariff classifications (GN 29(n)/62.12 and GN 29(n)/62.15, respectively. However, you ask whether the garments are eligible for the DR-CAFTA preferential rates as the result of the fabric’s short supply designation.
General Note 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, in pertinent part:
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 CAFTA-DR, Annex 3.25, is the following designated fabric:
89. Two-Way Stretch Woven Polyester, Rayon, Spandex Fabric HTS Subheading: 5515.11.00 Fiber Content: 50 to 77 percent polyester; 18 to 47 percent rayon; 3 to 8 percent spandex (for fabrics comprising single yarns in the warp, the polyester content may be higher) Staple Length (where applicable): 4.44 to 6.99 centimeters (1.75 to 2.75 inches) Yarn (three configurations): #1: Warp and filling: plied polyester/rayon staple of various yarn sizes, combined with spandex filament of various deniers. #2: Warp and filling 34/1 (English 20/1) or finer polyester/rayon staple, combined with spandex filament of various deniers. #3: Warp: 34/1 (English 20/1) or finer polyester/rayon staple, or plied polyester/rayon staple of various yarn sizes, combined with spandex filament of various deniers;
Filling: singles or plied polyeter filament of various yarn sizes, combined with spandex filament of various deniers. NOTE: The designation "34/1 (English 20/1) or finer" describes a range of yarn specifications for yarn it its greige condition before dyeing and finishing of the yarn (if applicable) and before weaving, dyeing and finishing of the fabric. It is intended as a specification to be followed by the mill in sourcing yarn used to produce the fabric. Dyeing, finishing and weaving can alter the characteristic of the yarn as it appears in the finished fabric. This specification therefore includes yarns appearing in the finished fabric as coarser than 34/1 (English 20/1) provided that the coarser appearance occurs solely as the result of such processes. Thread Count: 23 to 51 warp ends by 16 to 39 filling picks per centimeter (60 to 130 warp ends by 40 to 100 filling picks per inch) Weave Type: Various (including plain and twill) Weight:
-Fabrics comprising single yarns in the warp - 200 to 290 grams per square meter (5.9 to 8.6 ounces per square yard). -Fabrics comprising plied yarns in the warp - 200 to 310 grams per square meter (5.9 to 9.1 ounces per square yard). Width: 121 to 165 centimeters (English 48 to 65 inches) Finish: Dyed and of yarns of different colors.
NOTE: As of October 13, 2012, elastomeric content in any product deemed in short supply may be sourced from any country.
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 fabrics of your submitted samples were tested by the Customs and Border Protection laboratory, and it was determined that neither fabric conforms to all of the specifications set out above. Specifically, the length of the staple fibers in both the warp and the filling of each of the fabrics was found to be outside of the defined parameters. Accordingly, Styles Tofan and Megan are not entitled to a free rate of duty under the DR-CAFTA, because neither garment meets the requirements of HTSUS, GN 29(m)(viii)(B)(1).
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