CLA-2-62:OT:RR:NC:N3:356
Ms. Johanna Hill
CA Trade Consulting Group
Calle y Col La Mascota, No. 138 San Salvador 1101 El Salvador
RE: The tariff classification and status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA) of a men’s shirt from Guatemala
Dear Ms. Hill:
In your letter dated August 24, 2023, on behalf of your client, Quality Shirt Company S.A., you requested a ruling on the classification and status under the DR-CAFTA of a men’s shirt from Guatemala. The submitted sample will be retained in our office.
Style 9503070921 is a men’s shirt constructed from 60% cotton and 40% polyester woven fabric. The garment features a self-fabric camp collar; a left-over-right, full front opening with six button closures; short, hemmed sleeves; two pockets on the chest with flap and button closures; a back yoke; and a curved, hemmed bottom.
The applicable subheading for Style 9503070921 will be 6205.20.2067, Harmonized Tariff Schedule of the United States (HTSUS), which provides for: Men’s or boys’ shirts: Of cotton: Other: Other: Other: Other: Men’s: Other. The rate of duty will be 19.7 percent ad valorem.
Concerning your inquiry regarding the eligibility of Style 9503070921 under the DR-CAFTA, you state that the garments are cut, sewn, and assembled in Guatemala of fabric produced in China, Colombia, and other non-DR-CAFTA countries. You have requested consideration of the fabric under the Office of Textiles and Apparel’s (OTEXA) short supply number 28.
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:
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 fabric of the shirt is woven in a non-DR-CAFTA country, the shirt is not wholly produced within the DR-CAFTA territory. The shirt also fails to meet the specific rule of origin, set out in GN 29(n)/62.30B, that applies to its tariff classification. Finally, the shirt is not produced entirely within the DR-CAFTA territory exclusively from originating materials.
However, GN 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:
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) are the following designated fabrics:
(28) Fabrics classified in the following tariff items of average yarn number exceeding 93 metric: 5208.21.60, 5208.22.80, 5208.29.80, 5208.31.80, 5208.32.50, 5208.39.80, 5208.41.80, 5208.42.50, 5208.49.80, 5208.51.80, 5208.52.50, 5208.59.80, 5210.21.80, 5210.29.80, 5210.31.80, 5210.39.80, 5210.41.80, 5210.49.80, 5210.51.80, or 5210.59.80.
These tariff items correlate to those included on OTEXA’s DR-CAFTA short supply list (Annex 3.25) and reflect the 8-digit numbers used in the United States. Only fabrics classifiable under one of these tariff numbers are deemed to be commercially unavailable within the DR-CAFTA region and thus eligible to be used to qualify products for DR-CAFTA preferential treatment pursuant to GN 29(m)(viii)(B).
You suggest that the fabric of Style 9503707921 is classifiable under 5210.29.80, which provides for woven fabrics of cotton, containing less than 85 percent by weight of cotton, mixed mainly or solely with man-made fibers, bleached, of other than plain weave, satin weave, or twill weave, of number 69 or higher number. However, you have identified this fabric as satin weave, which is more correctly classified under subheading 5210.29.20. This tariff number is not among those included in short supply number 28.
Accordingly, Style 9503070921 is not entitled to a free rate of duty under the DR-CAFTA, because it fails to 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 at https://hts.usitc.gov/current.
The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP.
This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection 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, please contact National Import Specialist Maryalice Nowak at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division