CLA-2-61:OT:RR:NC:N3:354
Ms. Maureen Ford
Ansell Healthcare Products LLC
111 Wood Avenue South, Suite 210
Iselin, NJ 08830
RE: The tariff classification and status under the United States-Korea Free Trade Agreement (UKFTA), of a pair of gloves from Korea
Dear Ms. Ford:
In your letters dated February 28, 2018 and January 29, 2018, you requested a ruling on the classification and the status of a pair of gloves from Korea under the UKFTA.
A sample of the gloves, Style 11-644, and yarns used in the production of the knit to shape glove were submitted. The samples will be returned under separate cover.
The finished glove, Style 11-644, is a polyurethane dipped, knit work glove constructed of 74% polyethylene, 13% nylon, 6% spandex, 6% rubber and 1% other. The polyurethane coating is on the outer surface and covers the entire palm, a portion of the front cuff, and also overlaps the backside fingertips and sides of the wearer’s hand and fingers. The gloves feature an elasticized cuff. You have indicated that the yarns of the glove make up 86% of the weight of the glove and the polyurethane coating makes up 14% of the weight, therefore, the weight of the textiles is more than 50% of the weight of the glove.
The applicable tariff provision for the gloves will be 6116.10.5520 HTSUS, which provides for “Gloves, mittens and mitts, knitted or crocheted: Impregnated, coated or covered with plastics or rubber: Other: Without fourchettes: Other: Containing 50 percent of more by weight of cotton, made-made fibers or other textile fibers, or any combination thereof: Subject to man-made fiber restraints”. The general rate of duty will be 13.2% percent ad valorem.
You have requested a determination under the UKFTA. The manufacturing operations are as follows:
In Korea, polyethylene yarns from Japan, nylon yarns from Korea and elastane yarns from Korea undergo a gimping process.
The gimped yarn is then knit-to-shape into a glove in Korea.
The gloves are dipped in polyurethane and customer logos are printed on the back of the finished gloves in Korea as well.
As the gimped yarn consists of yarns from two countries, Japan and Korea, a determination must be made in regard to the country of origin.
As per HQ 952801:
“Where for the purposes of our international textile agreements, a determination must be made in regard to the country of origin of a composite article comprised of components of different countries, where the joining of the components is not sufficient to confer origin, the origin of the article will be determined by the component which would be selected under GRI 3, HTSUSA, as being determinative of classification.
With regard to the gimped yarn, the rubber core yarn component provides elasticity and the surrounding polyethylene and nylon yarn components provide the strength. Each component equally imparts the essential character. As a result, we must apply GRI 3(c).
GRI 3(c) provides:
When goods cannot be classified by reference to 3(a) or 3(b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration.”
The nylon yarns are classified under subheading 5402.32, HTSUS, the elastane yarns are classified under subheading 5402.44, HTSUS, and the polyethylene yarns are classified under subheading 5402.49, HTSUS.
Since the polyethylene yarns are last in numerical order in the HTSUS, the country of origin of the gimped yarn is Japan.
General Note 33, HTSUS, sets forth the criteria for determining whether a good is originating under the UKFTA. General Note 33(b), HTSUS, states, in pertinent part, that
For the purposes of this note, subject to the provisions of subdivisions (c), (d), (n) and (o) thereof, a good imported into the customs territory of the United States is eligible for treatment as an originating good of a UKFTA country under the terms of this note if–
the good is wholly obtained or produced entirely in the territory of Korea or of the United States, or both;
the good is produced entirely in the territory of Korea or of the United States, or both, and—
(A) each of the nonoriginating materials used in the production of the good undergoes an applicable change in tariff classification specified in subdivision (o) of this note; or
(B) the good otherwise satisfies any applicable regional value-content or other requirements set forth in such subdivision (o); and
satisfies all other applicable requirements of this note and of applicable regulations
General Note 33 (o), HTSUS, states in subdivision (61) (37) that a material of foreign origin may qualify under UKFTA if each nonoriginating material used in the production of the good undergoes the following change in tariff classification:
A change to headings 6113 through 6117 from any other chapter, except from headings 5106 through 5113, 5204 through 5212, 5307 through 5308, 5310 through 5311 or 5401 through 5402, subheadings 5403.33 through 5403.39 or 5403.42 through heading 5408 or headings 5508 through 5516 or 6001 through 6006, provided that the good is both cut (or knit to shape) and sewn or otherwise assembled in the territory of Korea or of the United States, or both.
The non-originating material, the gimped yarn, is classified under 5606, HTSUS and meets the terms of the tariff shift.
GN 33(d)(iv), HTSUS, also states in pertinent part,
A good containing elastomeric yarns in the component of the good that determines the classification of the good shall be considered to be originating good only if such yarns are wholly formed in the territory of Korea or the United States.
The elastane yarn, used in the component that determines the classification, is formed in Korea.
Based on the facts provided, the gloves qualify for UKFTA preferential treatment, because they meet the requirements of HTSUS General Note 33(b)(ii)(A). The gloves will be entitled to a free rate of duty under the UKFTA 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 http://www.usitc.gov/tata/hts/.
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 Karen Sikorski at [email protected].
Should you wish to request an administrative review of this ruling, submit a copy of this ruling and all relevant facts and arguments within 30 days of the date of this letter, to U.S. Customs and Border Protection, Regulations & Rulings, 90 K Street N.E. – 10th floor, Washington, DC 20229-1177.
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division