CLA-2-64:OT:RR:NC:N2:247
Ms. Sandra Tovar
CST, Inc.
500 Westpark Drive
Peachtree City, GA 30269
RE: The tariff classification of footwear produced in the Dominican Republic and the eligibility for preferential treatment under the Dominican Republic – Central America – United States Free Trade Agreement (DR-CAFTA).
Dear Ms. Tovar:
In your letters dated March 4, 2022, and April 24, 2022, you requested a tariff classification ruling on behalf of your client Margarita International, Ltd., located in Miami, Florida. Your request concerns the eligibility for preferential duty treatment of four styles of children’s shoes under the DR-CAFTA. Two samples with uppers made of rubber or plastics were submitted with your request. FOB value information was submitted via email. In addition, you would like consideration on the two styles when also manufactured with textile uppers.
Style KNCH-OT is a child’s, open toe/open heel, below-the-ankle shoe. The upper and outer sole is made of over 90 percent rubber or plastics. The shoe’s upper is secured over the foot with a hook and loop closure. There is no foxing or foxing-like band. The F.O.B. value is $6.46 per pair.
The applicable subheading of the children’s style KNCH-OT will be 6402.99.3177, Harmonized Tariff Schedule of the United States (HTSUS), which provides for footwear with outer soles and uppers of rubber or plastics: other footwear: other: other: having uppers of which over 90 percent of the external surface area (including any accessories or reinforcements) is rubber or plastics (except footwear having a foxing or a foxing-like band applied or molded at the sole and overlapping the upper and except footwear designed to be worn over, or in lieu of, other footwear as a protection against water, oil, grease or chemicals or cold or inclement weather): other: other: other: other. The rate of duty will be 6 percent ad valorem.
Style KNCH-1 is a child’s, closed toe/closed heel, below-the-ankle, below-the-knee shoe. The external surface of the upper consists of over 90 percent rubber or plastics. The shoe has a cord with toggle closure over a tongue and a strap with a hook and loop closure near the top. The outer sole is made of 100 percent rubber or plastics. The shoe was crosscut and determined to have a foxing-like band. The F.O.B. value is $11.40 per pair.
The applicable subheading for style KNCH-1 will be 6402.99.8091, HTSUS, which provides for other footwear with outer soles and uppers of rubber or plastics: other footwear: other: other: other: other: valued over $6.50 but not over $12/pair: other: other. The rate of duty will be 90 cents/pr. + 20 percent ad valorem.
Style KNCH-OT-TEX is a child’s, open toe/open heel, below-the-ankle shoe. The upper is made of cotton canvas textile material. The shoe’s upper is secured to the foot with a hook and loop closure. It does not have a foxing or foxing-like band. The outer sole is rubber/plastics. The rubber/plastic components weigh more than 10 percent of the total weight of the shoe. The F.O.B. value is $6.46 per pair.
The applicable subheading for the child’s style KNCH-OT-TEX will be 6404.19.3980, HTSUS, which provides for footwear with outer soles of rubber, plastics, leather or composition leather and uppers of textile materials: footwear with outer soles of rubber or plastics: other: footwear with open toes or open heels; other: other: other: other. The rate of duty will be 37.5 percent ad valorem.
Style KNCH-1-TEX is a child’s, closed toe/closed heel, below-the-ankle, and below-the-knee shoe. The upper and outer sole are made of predominantly cotton canvas textile material. The shoe has a hook and loop closure. There is a foxing like band. The F.O.B. value is $11.40 per pair.
The applicable subheading for style KNCH-1-TEX will be 6404.19.8990, HTSUS, which provides for footwear with outer soles of rubber, plastics, leather or composition leather and uppers of textile materials: footwear with outer soles of rubber or plastics: other: other: valued over $6.50 but not over $12/pair: other: other. The rate of duty will be 90 cents/pair + 20 percent ad valorem.
According to your letter, the unformed uppers, are imported from China to the Dominican Republic (DR) along with the insoles. The rubber/plastic unformed upper is classified under 6406.10.6000, HTSUS. The cotton unformed upper is classified under 6404.10.7700, HTSUS. The EVA insole is imported to the DR under the classification of 6406.90.3060, HTSUS, and the rubber or plastic outer sole will be imported from China to the DR under 6406.20.0000. For all styles, in the DR, the upper and insoles are roughed, primed, UV light treated, heat activated, and cemented. The upper is mounted to the last and the outer sole is attached and pressed.
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 non-originating materials used in the production of the good undergoes an applicable change in tariff classification specified in subdivision (n) of this note; … The non-originating materials must undergo an applicable change in tariff classification in order to meet the requirements of GN 29(b)(ii)(A). General Note 29 (n), Chapter 64, Chapter rule 1 states: Notwithstanding the tariff classification rules for goods of chapter 64 set forth below, with respect to goods of chapter 64 falling in the following tariff provisions enumerated in this rule for which a rate of duty followed by the symbol “P” in parentheses appears in the “Special” sub column rate of duty column 1, an importer may claim preferential tariff treatment under this note for a good of chapter 64 that meets any tariff classification rule for such good set forth in general note 12, 17, 25, 26 or 28 of the tariff schedule: tariff items 6401.92.30, 6401.92.60, 6401.99.80, 6402.12.00 through 6402.30.30 inclusive, 6402.30.60, 6402.30.90, 6402.91.40, 6402.91.60, 6402.91.70, 6402.99.05 through 6402.99.18, inclusive, and 6402.99.30 through 6402.99.79, inclusive; heading 6403; tariff items 6404.11.20 through 6404.19.15, inclusive, and 6404.19.25 through 6404.20.60, inclusive; and headings 6405 and 6406.
1. A change to subheading 6401.10, or tariff items 6401.92.90, 6401.99.10, 6401.99.30, 6401.99.60, 6401.99.90, 6402.91.10, 6402.91.20, 6402.91.26, 6402.91.50, 6402.91.70, 6402.91.80, 6402.91.90, 6402.99.08, 6402.99.16, 6402.99.19, 6402.99.33, 6402.99.80, 6402.99.90, 6404.11.90 or 6404.19.20 from any other heading outside headings 6401 through 6405, except from subheading 6406.10, provided that there is a regional value content of not less than 55 percent under the build-up method.
2. A change to any other tariff item of chapter 64 from any other subheading.
Based on the facts provided, the children’s style KNCH-OT classified under subheading 6402.99.3177, HTSUS, child’s style KNCH-OT-TEX classified under subheading 6404.19.3980, HTSUS, and style KNCH-1-TEX classified under subheading 6404.19.8990, HTSUS, qualify for preferential duty treatment because they meet the requirements of HTSUS General Note 29(b)(ii)(A) and 29(n) Chapter 64, General Rule 1. According to General Rule 1, footwear classified in 6402.99.30 through 6402.99.79, inclusive; and 6404.19.25 through 6404.20.60, inclusive, may claim preferential tariff treatment.
The children’s style KNCH-1, classified under subheading 6402.99.8091, HTSUS, qualifies for preferential duty treatment because it meets the requirements of HTSUS General Note 29(b)(ii)(A) and 29(n) Chapter 64, Chapter Rule 2. Rule 2 states the classification of non-originating materials must “change to any other tariff item of Chapter 64 from any other subheading.” The non-originating component parts, if imported separately, including the rubber/plastic unformed upper, classified under 6406.10.6000, HTSUS, the EVA insole classified under 6406.90.3060, HTSUS, and the rubber or plastic outer sole, classified under 6406.20.0000, HTSUS, manufactured into completed shoes in the Dominican Republic, undergo a tariff change to any other tariff item of chapter 64 from any other subheading, and will meet the requirements of the DR-CAFT General Notes 29(b)(ii)(A) and 29(n) Chapter 64, Rule 2.
The children’s shoes will therefore be entitled to duty free treatment upon compliance with all applicable laws, regulations, and agreements.
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 Stacey Kalkines at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division