CLA-2-61:OT:RR:NC:N3:356
Mr. Salvador Llort
Confecciones del Valle S.A. de C.V.
Km 24 Carretera a Santa Louerdes-Colon
El Salvador
RE: The tariff classification and status under the Dominican Republican-Central America-United States Free Trade Agreement (DR-CAFTA) of men’s knit jogging pants from El Salvador
Dear Mr. Llort:
In your letter dated May 25, 2022, on behalf of your client, Adidas International Trading AG, you requested a ruling on the tariff classification and eligibility under the DR-CAFTA of men’s jogging pants. The sample will be retained in our office for training purposes.
Style S2306GHTT204 is pair of men’s jogging pants constructed from 100 percent polyester double-knit fabric. The pull-on pants feature a tunnel elasticized waistband with an inside drawstring, side seam pockets with zippered closures, a three-stripe, contrasting color Adidas logo at the upper left leg, three overlay strips and a triangular contrasting fabric insert at the outer side of each leg, self-fabric inserts and piping at the lower back portion of each leg, zippered side closures at the outer bottom of each leg, and hemmed leg openings.
The applicable subheading for Style S2306GHTT204 will be 6103.43.1520, Harmonized Tariff Schedule of the United States (HTSUS), which provides for: Men’s or boys’… trousers, bib and brace overalls, breeches and shorts (other than swimwear), knitted or crocheted: Of synthetic fibers: Trousers, breeches and shorts: Other: Trousers and breeches: Men’s. The rate of duty will be 28.2 percent ad valorem.
The manufacturing operations for Style S2306GHTT204 are as follows:
The polyester double-knit fabric of the main body of the garment is knit in El Salvador from yarns produced in El Salvador and/or the United States.
The triangular fabric inserts are manufactured in Thailand.
The polyester pocket bag fabric is formed and finished in Honduras from yarns that are wholly formed in the United States.
The polyester yarn used to sew the garments is a core spun yarn that is produced and finished in Honduras from filament and staple fibers formed in the United States.
In El Salvador, the fabric of the garments is cut and sewn, and the garments undergo assembly operations.
The finished garments are exported from El Salvador directly to the United States.
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.
Since Style S2306GHTT204 contains non-originating materials (i.e., the triangular fabric inserts from Thailand), it must satisfy the specific rule of origin, set out in GN 29(n)/61.12, that applies to its tariff classification (6103.43.1520). This rule states:
A change to subheadings 6103.41 through 6103.49 from any other chapter, except from headings 5111 through 5113, 5204 through 5212, 5310 through 5311, chapter 54, headings 5508 through 5516 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 to the tariff shift rule set out in GN 29(n)/61.12, the good must also meet any applicable chapter rules found in GN 29(n), Chapter 61. The chapter rules that apply to the subject good are 2, 4, and 5.
GN 29(n), Chapter 61, 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 that rule for that good.
The component that determines the tariff classification of Style S2306GHTT204 is the polyester double-knit fabric. Therefore, this fabric is the only component that must satisfy the specific rule of origin set out in GN 29(n)/62.12. As described above, this fabric is knit in El Salvador from yarns formed in El Salvador and/or the United States. Accordingly, since the fabric is an originating material, it does not need to meet the terms of this tariff shift rule.
GN 29(n), Chapter 61, Chapter rule 4 states, in pertinent part:
Notwithstanding chapter rule 2 to this chapter, a good of this chapter… containing sewing thread of heading 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 of more of the parties to the Agreement.
As described above, the yarn used to sew the garment is both formed and finished within the DR-CAFTA territory.
GN 29(n), Chapter 61, Chapter rule 5 states, in pertinent part:
Notwithstanding chapter rule 2, 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.
As described above, the pocket bag fabric of Style S2306GHTT204 is formed and finished within the DR-CAFTA territory from yarn wholly formed within the DR-CAFTA territory.
Based on the facts provided, Style S2306GHTT204 qualifies for preferential tariff treatment under the DR-CAFTA, because it meets the requirements of GN 29(b)(ii). The garment will be 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 Maryalice Nowak at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division