CLA-2-62:OT:RR:NC:N3:348
Mr. Mark Gitomer
The Production Department
431 Maple Avenue
Pittsburgh, PA 15218
RE: The tariff classification and status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA), of a women’s bathrobe from El Salvador
Dear Mr. Gitomer:
In your letter dated July 8, 2019, you requested a ruling on the classification and eligibility of women’s bathrobes from El Salvador under the DR-CAFTA. Your sample is being retained by this office.
The sample submitted, Style 508108, is a woman’s bathrobe. The outer shell of the bathrobe is constructed from 100% woven cotton flannel fabric. The loose fitting garment is contains a fleece lining, extends from the shoulders to above the knee and features a full frontal opening, a self-fabric tie belt, two self-fabric belt loops, long sleeves, pockets below the waist, a hanger loop, and a hemmed bottom.
You suggested classification under 6208.21.0010, Harmonized Tariff Schedule of the United States (HTSUS) which provides Women’s or girls’ singlets and other undershirts, slips, petticoats, briefs, panties, nightdresses, pajamas, negligees, bathrobes, dressing gowns and similar articles, Nightdresses and pajamas: Of cotton, with two or more colors in the warp and/or the filling, Other: Women’s. We disagree with this proposed classification. The garment is more specifically provided for under subheading 6208.91.1010 as a bathrobe.
The applicable subheading for Style 508108 will be 6208.91.1010, HTSUS , which provides for Women’s…bathrobes…and similar articles, other: Of Cotton: Bathrobes, dressing gowns and similar articles, Women’s,. The duty rate will be 7.5% 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 World Wide Web at http://www.usitc.gov/tata/hts/.
The manufacturing operations are as follows:
The outer shell fabric is constructed from 100% cotton yarn-dyed woven flannel fabric NE 24/1 x 21/1 single ring-spun yarn weighing 148 g/m2. The cotton flannel fabric is manufactured in Pakistan.
The fleece lining, for the body of the garment, is manufactured in China.
The cotton/polyester lining, for the sleeves, is manufactured in knitted in El Salvador from US cotton staple and Chinese polyester staple yarn.
The sewing thread is formed and finished in Costa Rica
The patch pockets are constructed from fabric manufactured in Portugal from Pakistani yarns.
The garment is cut, sewn and assembled in El Salvador
The garment will be shipped directly from El Salvador to the United States.
You further advise that the outer shell fabric is designated by the Office of Textiles and Apparel (OTEXA) as short supply (#49).
General Note 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, 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 good contains non-originating materials, it would have to undergo an applicable change in tariff classification in order to meet the requirements of General Note (GN) 29(b)(ii)(A).
For goods classified under subheading 6205.20, GN 29/62.34 requires:
A change to any other tariff item of headings 6207 through 6208 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 merchandise does not qualify for preferential treatment under DR-CAFTA because (a) it will not be wholly obtained or produced entirely in the territory of one or more DR-CAFTA countries; (b) one or more of the non-originating materials used in the production of the goods will not undergo the change in tariff classification required by General Note 29(n)/62.34, HTSUS; and (c) it will not be produced entirely in the territory of one or more of the DR-CAFTA parties exclusively from originating materials. The garment may be subject to a reduced rate of duty classified under 9822.05.01, HTSUS.
General Note 29(m)(viii)(B) states:
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; or (2) one or more fabrics formed in the territory of one or more of the parties to the Agreement from one or more of the yarns listed in U.S. note 20 to such subchapter XXII; or (3) any combination of the fabrics referred to in subdivision (B)(1), the fabrics referred to in subdivision (B)(2) or one or more fabrics originating under this note. The originating fabrics referred to in subdivision (B)(3) may contain up to 10 percent by weight of fibers or yarns that do not undergo an applicable change in tariff classification set out in subdivision (n) of this note. Any elastomeric yarn contained in a fabric referred to in subdivision (B)(1), (B)(2) or (B)(3) must be formed in the territory of one or more of the parties to the Agreement. Chapter 98, subchapter XXII of the HTSUS U.S. Note 20(a) and (b) to that chapter states in pertinent part, that: 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.
GN 29, Chapter rule 6 states:
Notwithstanding chapter rules 1, 3, 4 or 5 to this chapter, an apparel good of chapter 62 shall be considered originating regardless of the origin of any visible lining fabric described in chapter rule 1 to this chapter, narrow elastic fabrics as described in chapter rule 3 to this chapter, sewing thread or yarn of heading 5402 used as sewing thread described in chapter rule 4 to this chapter or pocket bag fabric described in chapter rule 5, provided such material is listed in U.S. note 20 to subchapter XXII of chapter 98 and the good meets all other applicable requirements for preferential tariff treatment under this note.
Within Chapter 98, U.S. Note 20(b) is the following:
The United States Trade Representative may modify the enumeration of designated fabrics, yarns and fibers set forth in subdivision (a) of this note to reflect CITA determinations described in subdivision (a) of this note, in a notice published in the Federal Register.
Within the Office of Textiles and Apparel’s short supply list for CAFTA-DR, Annex 3.25, is the following designated fabric:
100 percent cotton yarn-dyed flannel fabrics, made from 14 thru 41 NM single ring spun yarns, classified in 5208.43.00 of the HTSUS of construction 2 X 1 twill weave, weighting 20 grams per square meter or less.
Based on the facts provided, the garment, Style 508108, described may qualify for DR-CAFTA preferential treatment because garment meets the requirements of HTSUS General Note 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 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 Rosemarie Hayward at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division