CLA-2-61:OT:RR:NC:N3:356
Mr. Clayton B. Hunt
Soft Shirts LLC
115 Green Valley Road
Greenville, SC 20617
RE: The tariff classification and status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA) of four men’s upper body garments from Honduras
Dear Mr. Clayton:
In your letter dated January 31, 2019, and in supplemental correspondence received in this office on February 25, 2019, you requested a ruling on the classification and status under the DR-CAFTA of four styles of men’s upper body garments from Honduras. Your samples will be returned.
Style 200 is a men’s garment that is cut and sewn from 100% cotton, circular knit jersey fabric weighing 170 grams per square meter. Style 200 features a rib knit crew neckline; short, hemmed sleeves; and a straight, hemmed bottom.
Style 210 is a men’s garment that is cut and sewn from 100% cotton, circular knit jersey fabric weighing 170 grams per square meter. Style 210 features a rib knit crew neckline; short, hemmed sleeves; a patch pocket on the left chest; and a straight, hemmed bottom.
Style 220 is a men’s garment that is cut and sewn from 100% cotton, circular knit jersey fabric weighing 170 grams per square meter. Style 220 features a rib knit crew neckline; long, hemmed sleeves; and a straight, hemmed bottom.
Style 230 is a men’s garment that is cut and sewn from 100% cotton, circular knit jersey fabric weighing 170 grams per square meter. Style 230 features a rib knit crew neckline; long, hemmed sleeves; a patch pocket on the left chest; and a straight, hemmed bottom.
The applicable subheading for Styles 200 and 210 will be 6109.10.0012, Harmonized Tariff Schedule of the United States (HTSUS), which provides for: T-shirts, singlets, tank tops and similar garments, knitted or crocheted: Of cotton: Men’s or boys’: Other T-shirts: Men’s. The rate of duty will be 16.5 percent ad valorem..
The applicable subheading for Styles 220 and 230 will be 6109.10.0027, HTSUS, which provides for: T-shirts, singlets, tank tops and similar garments, knitted or crocheted: Of cotton: Men’s or boys’: Other. The rate of duty will be 16.5 percent ad valorem.
Concerning your inquiry regarding the eligibility of Styles 200, 210, 220, and 230 under the DR-CAFTA, you state that the garments are cut, sewn, and assembled in Honduras of fabric that is knit in the United States of yarns produced in India. You have requested consideration of the fabric under the Office of Textiles and Apparel’s (OTEXA) short supply number 15.
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 yarns used to knit the fabric of the garments is produced in India, the garments are not wholly obtained or produced within the DR-CAFTA territory. Further, none of the garments meets the tariff shift rule applicable to its tariff classification (GN 29(n)/61.25). Finally, the knitting of the Indian-origin yarns into fabric in the United States does not render the fabric an originating material, because the tariff shift rule applicable to the fabric (GN 29(n)/60.3) is not satisfied.
However, you ask whether the garments are eligible for DR-CAFTA preferential duty rates as the result of the fabric’s short supply status.
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:
15. Circular knit fabric, wholly of cotton yarns, exceeding 100 metric number per single yarn, classified in subheading 6006.21.10, 6006.22.10, 6006.23.10, or 6006.24.10.
You have submitted documentation substantiating that the fabric of the garments is constructed of yarns with an English cotton count of 26/1. This converts to a metric number of 43.94, which does not exceed 100. Therefore, the fabric knit from these yarns does not conform to the specifications set out above. Accordingly, Styles 200, 210, 220, and 230 are not entitled to a free rate of duty under the DR-CAFTA, because they do not meet 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