CLA-2-62:OT:RR:NC:N3:356
Mr. Juan Felipe Spataro
Quality Shirt Company S.A.
Primera Avenida, La Brigada 13 30
Guatemala 01057 Guatemala
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 Mr. Spataro:
In your letter dated November 2, 2023, you requested a ruling on the classification and status under the DR-CAFTA of a men's shirt from Guatemala. Our response was delayed due to laboratory analysis. The submitted sample was destroyed during this analysis and will not be returned.
Style PE001 is a men's shirt stated to be constructed from 98% cotton and 2% spandex woven fabric. The garment features a self-fabric button-down collar; a left-over-right, full front opening with seven button closures; long, vented sleeves with two adjustable buttons on each cuff and one button on each vent; a back yoke; and a curved, hemmed bottom.
The applicable subheading for PE001 will be 6205.20.2051, Harmonized Tariff Schedule of the United States (HTSUS), which provides for: Men's or boys' shirts: Of cotton: Other: Other: Other: With two or more colors in the warp and/or the filling: Other: Men's. The rate of duty will be 19.7 percent ad valorem.
Concerning your inquiry regarding the eligibility of Style PE001 under the DR-CAFTA, you state that the garments are cut, sewn, and assembled in Guatemala of fabric produced either in China or in other non-DR-CAFTA countries, and that the finished garments will be exported directly from Guatemala to the United States. 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).
Testing by the Customs and Border Protection laboratory revealed that the fabric of the garment is constructed of 96% polyester and 4% spandex woven fabric that conforms to all of the specifications set out in short supply number 28.
Accordingly, Style PE001 is entitled to a free rate of duty under the DR-CAFTA, because it meets the requirements of HTSUS, GN 29(m)(viii)(B)(1).
You propose to mark Style PE001 by means of a label sewn into the lower left side seam of the garment. This proposed marking is not in accordance with Section 134.11 of the Customs Regulations (19 C.F.R. 134.11), which provides in part:
Unless excepted by law... every article of foreign origin (or its container) imported into the U.S. shall be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article (or container) will permit, in such a manner as to indicate to an ultimate purchaser in the U.S. the English name of the country of origin of the article, at the time of importation into the Customs territory of the U.S.
Further, Treasury Decision (T.D.) 54640(6) (1958) provides, in pertinent part:
Subject to the exceptions from marking provided under Section 304(a), Tariff Act of 1930, as amended wearing apparel, such as shirts, blouses, coats and sweaters, etc., must be legibly and conspicuously marked with the name of the country of origin by means of a fabric label or label made from natural or synthetic film sewn or otherwise permanently affixed on the inside center of the neck midway between the shoulder seams or in that immediate area or otherwise permanently marked in that area in some other manner.
Additionally, the submitted sketch of your proposed country of origin label states Hecho in Colombia. As imported, Style PE001 must be marked with its actual country of origin; i.e., Guatemala.
Finally, the proposed labelling lacks fiber content information. Textile fiber products imported into the United States must be labeled in accordance with the Textile Fiber Products Identification Act (15 U.S.C. 70 through 70k) and the rules promulgated thereunder by the Federal Trade Commission. We suggest you contact the Federal Trade Commission, 600 Pennsylvania Avenue, N.W., Washington, D.C. 20580 for information concerning the requirements of this Act. Information may also be obtained at the Federal Trade Commission website, www.ftc.gov.
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