CLA-2-62:OT:RR:NC:N3:360
Mr. David G. Blondino
Blondino Enterprises, Inc.
511 Goodwood Drive
Lutz, FL 33549
RE: The tariff classification and status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA), of women’s shorts
Dear Mr. Blondino:
In your letter dated January 4, 2022, you requested a ruling on the classification and eligibility under the DR-CAFTA of women’s shorts. This request was on behalf of your client, Wuxi Jinmao Trading Co., Ltd. Your samples will be returned as requested.
Style 020-19-3177 is a pair of women’s shorts constructed from 55% cotton and 45% rayon woven fabric. The shorts feature an elasticized waistband, faux button fly closures, side slits, and hemmed leg openings. The garment extends from the waist to the upper thigh area.
Style 020-19-3606 is a pair of women’s shorts constructed from 100% cotton woven fabric. The shorts feature an elasticized waistband, faux button fly closures, side slits, and hemmed leg openings. The garment extends from the waist to the upper thigh area.
In your letter, you suggest classification of styles 020-19-3177 and 020-19-3606 as sleepwear under subheading 6208.91.30, Harmonized Tariff Schedule of the United States (HTSUS). However, garments of this type are considered to be multi-use garments, designed for wear in a variety of informal situations in and around the home. As such, they are not classified in heading 6208, which is limited to garments designed for wear only to bed for sleeping. Consequently, the applicable subheading for styles 020-19-3177 and 020-19-3606 will be 6204.62.8056, HTSUS, which provides for Women’s or girls’ suits, ensembles, suit-type jackets, blazers, dresses, skirts, divided skirts, trousers, bib and brace overalls, breeches and shorts (other than swimwear): Trousers, bib and brace overalls, breeches and shorts: Of cotton: Other: Other: Other: Other: Other: Women’s shorts. The duty rate will be 16.6 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.
You have described the manufacturing and assembly of styles 020-19-3177 and 020-19-3606 as follows:
The cotton/rayon woven fabric is manufactured in China.
The fabric will be cut, sewn, and assembled into shorts in Guatemala or El Salvador.
The sewing thread will be produced in a non-DR-CAFTA territory.
The garments will be shipped directly from Guatemala or El Salvador to the U.S.
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: 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.
Because the garments’ fabric is produced in China, the garments are neither wholly obtained or produced within the DR-CAFTA territory, nor produced within the DR-CAFTA territory exclusively from originating materials.
Further, styles 020-19-3177 and 020-19-3606 do not meet the following applicable tariff shift rules that apply to the tariff classification (GN 29(n)/62.29):
A change to subheadings 6204.61 through 6204.69 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.
In addition, because the sewing thread used to assemble the garments must be both formed and finished in the territory of one or more parties to the Agreement, the subject goods fail to meet the requirements of GN 29(n), Chapter 62, Chapter rule 4, which states, in pertinent part:
Notwithstanding chapter rule 2, a good of this chapter…containing sewing thread of 5204, 5401 or 5508 or yarn of heading 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.
Based upon the facts provided, styles 020-19-3177 and 020-19-3606 fail to qualify for DR-CAFTA preferential treatment because they do not meet the requirements of GN 29(b)(ii)(A), HTSUS. The merchandise will not be entitled to a free rate of duty under the DR-CAFTA.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 6204.62.8056, HTSUS, unless specifically excluded, are subject to an additional 7.5 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.15, in addition to subheading 6204.62.8056, HTSUS, listed above.
The HTSUS is subject to periodic amendment, so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading. For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, including information on exclusions and their effective dates, you may refer to the relevant parts of the USTR and CBP websites, which are available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/trade/remedies/301-certain-products-china, respectively.
At the time of Entry/Entry Summary, you may be requested to verify the information for any specific shipment or product.
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 Kimberly Rackett via email at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division