CLA-2-62:OT:RR:NC:N3:357
Mr. Steve Baillie ARC’TERYX Equipment A Division of Amer Sports Canada Inc. #110-2220 Dollarton Hwy North Vancouver, BC V7H1A8 Canada
RE: The tariff classification and status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA), of a men’s jacket from El Salvador
Dear Mr. Baillie:
In your letter dated July 14, 2018, you requested the status of a men’s jacket under the DR-CAFTA. Your sample will be returned under separate cover.
Style 23687 is a men’s jacket constructed from 100% nylon, woven fabric that is laminated to an ePTFE membrane that is visible to the naked eye. The garment is lined with 100% nylon, woven fabric that has been quilted to a 100% polyester, non-woven fiberfill. The garment features, a full front opening with a zipper closure; an internal storm flap; a multi-adjustable, scuba-type, hood; zippered pockets below the waist; an internal, zippered, chest pocket; zippered sleeve pockets; long sleeves with finely knit, stretch fabric cuffs; loop fabric, upper arm identification patches; and a hemmed bottom fitted with a draw cord and cord locks for tightening.
The applicable subheading for style 23687 will be 6210.40.5520, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Garments, made up of fabrics of heading 5602, 5603, 5903, 5906, or 5907: Other men’s or boys’ garments: Other: Of man-made fibers: Other: Anoraks (including ski-jackets), wind breakers and similar articles. The rate of duty will be 7.1% ad valorem.
The manufacturing process for style 23687 is as follows:
The 100% nylon, woven, laminated fabric used to manufacture the outer shell of the garment is manufactured in Taiwan.
The 100% nylon, woven lining fabric is made in the United States from United States originating yarns and fibers.
The sleeve cuffs are constructed from man-made, fine gauge, stretch jersey knit fabric manufactured in Taiwan.
The internal chest pockets and the waist pockets are constructed from 100% nylon, woven fabric made in the United States from United States originating yarns and fibers.
The arm pockets are constructed from 100% nylon, woven laminated fabric manufactured in Taiwan.
The loop fabric used to construct the identification patches is manufactured in the United States.
The plastic zippers are manufactured in Indonesia.
The nylon cords are manufactured in the United States.
The polyester thread used to assemble the garment will be formed and finished in El Salvador.
The fabric is cut into components, sewn, and assembled into finished garments in El Salvador.
The garments will be shipped directly from El Salvador to the United States.
General Note 29(b), 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 non-originating 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 garments contain non-originating materials, they are required to undergo an applicable change in tariff classification to meet the requirements of GN 29(b)(ii)(A).
For goods classified in Chapter 62, General Note 29(n), Chapter rule 2 states in pertinent part:
For purposes of determining whether a good of this chapter is originating, the rule applicable to that good shall only apply to the component that determines the tariff classification of the good and such component must satisfy the tariff change requirements set out in the rule for that good.
For the garments classified in heading 6210, General Note 29(n) 62.35C requires:
A change to any other good of heading 6210 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.
The component that determines the classification of the garment is the laminated nylon woven fabric, which you state in your ruling request, is manufactured in Taiwan. The laminated fabric is classified in chapter 59 and undergoes the applicable change in tariff classification specified in General Note 29(n) 62.35C.
In addition to meeting the commodity specific rules above, the DR-CAFTA chapter rules for linings, sewing thread, and pockets must also be satisfied for each garment.
General Note 29(n), Chapter 62, Chapter rule 1 states in pertinent part:
Except for fabrics classified in tariff item 5408.22.10, 5408.23.11, 5408.23.21 or 5408.24.10, the fabrics identified in the following headings and subheadings, when used as visible lining material in certain men’s and women’s suits, suit-type jackets, skirts, overcoats, carcoats, anoraks, windbreakers and similar articles… must be both formed from yarn and finished in the territory of one or more of the parties to the Agreement.
General Note 29(n), Chapter 62, Chapter rule 2 states in pertinent part:
If the rule requires that the good must also satisfy the tariff change requirements for visible lining fabrics listed in chapter rule 1, such requirement shall only apply to the visible lining fabric in the main body of the garment, excluding sleeves, which covers the largest surface area, and shall not apply to removable linings.
You state the 100% nylon woven lining fabric used to construct the lining in the main body of the garment is formed from yarn and finished in the territory of one or more of the parties to the Agreement.
General Note 29(n), Chapter 62, Chapter rule 4 states in pertinent part:
Notwithstanding chapter rule 2 to this chapter, a good of this chapter containing sewing thread of headings 5204, 5401, and 5508 or yarn of 5402 used as sewing thread shall be considered originating only if such sewing thread or yarn is both formed and finished in the territory of one or more of the parties to the Agreement.
You state the polyester thread or yarn used as thread for assembly is classified under heading 5401 and is formed and finished in one or more parties to the Agreement.
General Note 29(n), Chapter 62, Chapter rule 5 states in pertinent part:
Notwithstanding chapter rule 2 to this chapter, a good of this chapter that contains a pocket or pockets shall be considered originating only if the pocket bag fabric has been formed and finished in the territory of one or more of the parties to the Agreement from yarn wholly formed in the territory of one or more of the parties to the Agreement.
In your ruling request letter, you state that the pockets contained in the jacket do not meet the “pocket bag” description described in HQ ruling H043056, so they are not subject to Chapter 62, Rule 5. We disagree. Chapter 62, Rule 5, does not require that the fabric be sewn into a pocket bag prior to assembly. As long as the fabric is assembled to form a pocket bag before or during assembly of the garment, the fabric must meet the requirements of Chapter 62, Rule 5. The pockets included in this garment have been sewn into pocket bags during assembly. (See HQ 264873.)
You state the chest pocket and hand pocket bags are made of 100% nylon, woven fabric formed and finished in one or more parties to the Agreement from yarn wholly formed and finished in the territory of one or more of the parties to the Agreement.
You state the arm pocket bags are constructed from a laminated nylon woven fabric manufactured in Taiwan.
Based on the facts provided, the garment will not qualify for DR-CAFTA preferential treatment because it does not meet the requirements of HTSUS General Note 29(b)(ii)(A). Specifically, the fabric used to construct the arm pockets is not formed and finished in the territory of one or more of the parties to the Agreement from yarn wholly formed in the territory of one or more of the parties to the Agreement per the requirements of Chapter 62, Chapter Rule 5. Therefore, the garment is not entitled to a free rate of duty under the DR-CAFTA.
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 Deanna Boldt via email at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division