CLA-2-63:OT:RR:NC:N3:351
Ms. Elisa Torres
George C. Moore El Salvador Ltda de C.V.
American Industrial Park, Km.36 Carretera a Santa Ana
La Libertad Ciudad Arce
El Salvador
RE: The tariff classification, country of origin and status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA) for a textile wrist wrap and a textile abdominal binder from El Salvador
Dear Ms. Torres:
In your original letter and your follow up letter dated August 21, 2018, you requested a tariff classification, country of origin and status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA) for two products. Samples of both the weightlifting wrist wrap and an abdominal binder as well as supporting documents detailing the stages of production, were provided to this office. Samples will be returned as requested.
The Inzer wrist wrap is described as a weightlifting wrist wrap made up of woven elastic fabric. The wrap features a thumb loop sewn on one end, placed on the thumb to hold the wrap in place so it can be wrapped around the wrist. Hook and loop strips are also sewn onto the wrap to adjust the fit. The Inzer wrist wrap is sold in pairs to be used to protect the wrists when lifting weights.
According to the information provided, all the manufacturing operations take place in El Salvador and facts are as follows:
Woven elastic fabric made of 49 percent polyester, 45 percent latex and 6 percent nylon is manufactured in El Salvador. Depending on the size of the wrap, the quantity of this fabric will vary. Braided elastic used as the thumb loop made of 64 percent polyester, 36 percent latex is manufactured in El Salvador. Hook and loop strips are manufactured in the United States. A heat transfer seal with the brand logo is placed on the fabric and all the components are assembled and sewn together with 100 percent polyester sewing thread that is manufactured in China. The Inzer wrist wrap is packaged and exported to the United States.
The Marena Recovery 9 inch binder is described as an abdominal compression binder made of elastic knit fabric. Pieces of woven fabric tape are sewn in a “V” shape in two separate sections of the elastic fabric. The binder has sewn on hook and loop strips that line the entire width to adjust the fit. The Marena Recovery 9 inch binder is packaged and exported to the United States.
According to the information provided, all the manufacturing operations take place in El Salvador and facts are as follows:
A knit panel of elastic fabric with an antimicrobial finish is made of 67 percent polyester, 17 percent spandex and 16 percent nylon is manufactured in El Salvador. Rigid woven 100 percent polyester fabric is manufactured in El Salvador. Woven elastic made of 90 percent nylon and 10 percent spandex is manufactured in El Salvador. Hook and loop strips are manufactured in the United States. A heat transfer seal with the brand logo is placed on the elastic fabric and all the components are assembled and sewn together with 100 percent nylon sewing thread that is manufactured in China. The Marena Recovery 9 inch binder is packaged and exported to the United States.
ISSUES: What are the tariff classification, country of origin and status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA) of the subject merchandise? CLASSIFICATION:
The applicable subheading for both Inzer wrist wrap and Marena Recovery 9 inch binder will be 6307.90.9889, Harmonized Tariff Schedule of the United States, (HTSUS), which provides for other made up textile articles, other. The rate of duty will be 7 percent ad valorem.
You also requested the classification of 100 percent polyester sewing thread and the 100 percent nylon sewing thread. No samples were submitted and you did not state if the thread is composed of synthetic, artificial, filament or staple fibers.
The classification for the sewing thread, if composed of synthetic filament fibers will be 5401.10.0000, HTSUS, which provides for sewing thread of man-made filaments, whether or not put up for retail sale: Of synthetic filaments. The duty rate will be 11.4 percent ad valorem.
The classification for the sewing thread, if composed of artificial filament fibers will be 5401.20.0000, HTSUS, which provides for sewing thread of man-made filaments, whether or not put up for retail sale, of artificial fibers. The rate of duty will be 12 percent ad valorem.
The classification for the sewing thread, if composed of synthetic staple fibers will be 5508.10.0000, HTSUS, which provides for sewing thread of manmade staple fibers, whether or not put up for retail sale; of synthetic staple fibers. The rate of duty will be 11.4 percent ad valorem.
The classification for the sewing thread, if composed of synthetic staple fibers will be 5508.20.0000, HTSUS, which provides for sewing thread of manmade staple fibers, whether or not put up for retail sale; of artificial staple fibers. The rate of duty will be 11 percent ad valorem.
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.
DR-CAFTA - LAW AND ANALYSIS:
General Note (GN) 29, HTSUS, sets forth the criteria for determining whether a good is originating under the DR-CAFTA. GN 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 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.
As the goods contain nonoriginating materials, they would have to undergo an applicable change in tariff classification in order to meet the requirements of GN 29(b)(ii)(A). The specific rule for GN 29(n) Chapter 63 rule 4 states, A change to headings 6304 through 6308 from any other chapter, except from headings 5111 through 5113, 5204 through 5212, 5310 through 5311, chapter 54, headings 5508 through 5516, 5801 through 5802, or 6001 through 6006, provided that the good 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.
Per the DR-CAFTA product specific rule above, the non DR-CAFTA sewing thread used in the production of the weightlifting wrist wrap and abdominal binder, classified in chapter 54 and heading 5508, do not meet the terms of the tariff shift rule. The goods in heading 6307 described above do not qualify for preferential treatment under the DR-CAFTA, as they do not meet the requirements of HTSUS General Note 29(b)(ii)(A). The goods will therefore not be entitled to a free rate of duty under the DR-CAFTA upon compliance with all applicable laws, regulations, and agreements.
COUNTRY OF ORIGIN - LAW AND ANALYSIS: Section 334 of the Uruguay Round Agreements Act (codified at 19 U.S.C. 3592), enacted on December 8, 1994, provided rules of origin for textiles and apparel entered, or withdrawn from warehouse for consumption, on and after July 1, 1996. Section 102.21, Customs Regulations (19 C.F.R. 102.21), published September 5, 1995 in the Federal Register, implements Section 334 (60 FR 46188). Section 334 of the URAA was amended by section 405 of the Trade and Development Act of 2000, enacted on May 18, 2000, and accordingly, section 102.21 was amended (68 Fed. Reg. 8711). Thus, the country of origin of a textile or apparel product shall be determined by the sequential application of the general rules set forth in paragraphs (c)(1) through (5) of Section 102.21. Paragraph (c)(1) states, “The country of origin of a textile or apparel product is the single country, territory, or insular possession in which the good was wholly obtained or produced.” As the subject merchandise is not wholly obtained or produced in a single country, territory or insular possession, paragraph (c)(1) of Section 102.21 is inapplicable. Paragraph (c)(2) states, “Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1) of this section, the country of origin of the good is the single country, territory, or insular possession in which each of the foreign materials incorporated in that good underwent an applicable change in tariff classification, and/or met any other requirement, specified for the good in paragraph (e) of this section:” Paragraph (e) in pertinent part states: The following rules shall apply for purposes of determining the country of origin of a textile or apparel product under paragraph (c)(2) of this section:
HTSUS 6307.90 - The country of origin of a good classifiable under subheading 6307.90 is the country, territory, or insular possession in which the fabric comprising the good was formed by a fabric-making process.
In this case, the only country where a fabric-making process occurs is El Salvador, where the base fabric is woven for the Inzer wrist wrap and knitted for the Marena Recovery 9 inch binder. Since the base fabric is formed by a fabric-making process in a single country, that is, El Salvador, as per the terms of the tariff shift requirement and/or other requirements specified in paragraph (e), the country of origin is conferred in El Salvador. The country of origin of these products is El Salvador for marking purposes.
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 Adleasia Lonesome via email at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division