CLA-2-62:OT:RR:NC:N3:356
Mr. Alexis Martinez Medina
Sam Sol, S.A.
Km. 37.5 Carretera Interamericana Santiago Sacatepequez Guatemala
RE: The tariff classification and status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA), of men's garments from Guatemala
Dear Mr. Martinez Medina:
In your letter dated May 21, 2024, you requested a ruling on the classification and status under the DR-CAFTA of men's garments from Guatemala. Your submitted samples will be retained in our office.
Style USM3Burlington-C is a men's suit-type jacket constructed from 100% polyester woven fabric. Style USM3Burlington-C is constructed of six panels sewn together lengthwise and features a notched collar with lapels; a button hole on the left lapel; a left-over-right, full front opening with two button closures; long, hemmed, vented sleeves with four buttons on each vent; a welt pocket on the left chest; two front inset pockets with flaps below the waist; a welt pocket on the inner left front panel and a smaller welt coin pocket beneath it; a welt pocket on the inner left front panel below the waist; a welt pocket with a triangular flap and a button closure on the inner right front panel; a hemmed bottom with curved edges on the front panels; and two rear vents. The body is lined with 100% polyester woven fabric and the sleeves are lined with a contrasting 100% polyester woven fabric.
Style USM3Burlington-P is a pair of men's trousers constructed from 100% polyester woven fabric. Style USM3Burlington-P features a flat waistband; a zippered fly front opening with a metal clasp closure and a button closure on the waistband; two diagonal inset pockets at the waist; and two rear welt pockets with a button closure on the left pocket. While the waistband of the submitted sample has six belt loops, you state that larger sizes may feature eight belt loops. The upper portion of each front panel of the garment is lined with 100% polyester woven fabric. The waistband, fly placket, and crotch are lined with 72% polyester and 28% cotton woven fabric. The leg openings of the submitted sample are unhemmed to allow for custom hemming by the individual buyer after import. You state that a second version of this style will feature hemmed leg openings.
Style V104Burlington is a men's vest. The front panels are constructed from 100% polyester woven fabric. The back panel and the lining of the front and back panels are constructed from a contrasting 100% polyester woven fabric. The garment is sleeveless and features a left-over-right, full front opening with four button closures; oversized armholes; two faux welt pockets below the waist; and a straight bottom with pointed front panels. A belt constructed from the fabric of the back panel and lining extends across the lower back panel and can be adjusted with a metal buckle. The essential character of the garment is imparted by the fabric of the front panels.
The applicable subheading for Style USM3Burlington-C will be 6203.33.2010, Harmonized Tariff Schedule of the United States (HTSUS), which provides for: Men's or boys' suits, ensembles, suit-type jackets, blazers, trousers, bib and brace overalls, breeches and shorts (other than swimwear): Suit-type jackets and blazers: Of synthetic fibers: Other: Men's. The rate of duty will be 27.3 percent ad valorem.
The applicable subheading for Style USM3Burlington-P will be 6203.43.9011, HTSUS, which provides for: Men's or boys' suits, ensembles, suit-type jackets, blazers, trousers, bib and brace overalls, breeches and shorts (other than swimwear): Trousers, breeches and shorts: Of synthetic fibers: Other: Other: Other: Other: Other: Other: Trousers and breeches: Men's: Other. The duty rate will be 27.9 percent ad valorem.
The applicable subheading for Style V104Burlington will be 6211.33.9054, HTSUS, which provides for: Track suits, ski-suits and swimwear; other garments: Other garments, men's or boys': Of man-made fibers: Other: Vests: Other. The duty rate will be 16 percent ad valorem.
Your request also concerns the eligibility of Styles USM3Burlington-C, USM3Burlington-P, and V104Burlington for preferential tariff treatment under the DR-CAFTA.
The manufacturing operations for Style USM3Burlington-C are as follows:
For the outer shell of the garment, polyester filament yarns are extruded in Mexico from materials produced in Mexico. The yarns are woven into fabric in Mexico, and the fabric is exported into Guatemala.
For the lining of the body of the garment, polyester filament yarns are extruded in Korea and woven into fabric in Korea, and the fabric is exported to Guatemala.
For the lining of the sleeves, polyester filament yarns are extruded in China woven into fabric in China, and the fabric is exported to Guatemala.
For the pocket bag fabric, polyester staple fibers and cotton fibers are spun into yarn in the United States. The yarn is woven into fabric in the United States and finished in Mexico. The fabric is exported to Guatemala.
The thread used to sew the garment is formed and finished in Honduras and exported to Guatemala.
In Guatemala, the fabrics are cut and sewn, and the components are assembled into the finished garment.
The manufacturing operations for Style USM3Burlington-P are as follows:
For the main body fabric of the garment, polyester filament yarns are extruded in Mexico from materials produced in Mexico. The yarns are woven into fabric in Mexico, and the fabric is exported into Guatemala.
For the lining of the upper front panels, polyester fabric is woven in China and exported to Guatemala.
For the pocket bag fabric, polyester filament yarns are formed in Honduras and exported to Nicaragua, and cotton yarns are spun in Nicaragua. The yarns are woven into fabric in Nicaragua and the fabric is exported to Guatemala.
The thread used to sew the garment is formed and finished in Honduras and exported to Guatemala.
In Guatemala, the fabrics are cut and sewn, and the components are assembled into the finished garment.
The manufacturing operations for Style V104Burlington are as follows:
For the front panels of the garment, polyester filament yarns are extruded in Mexico from materials produced in Mexico. The yarns are woven into fabric in Mexico, and the fabric is exported into Guatemala.
For the back panels and lining of the garment, polyester filament yarns are extruded in Korea and woven into fabric in Korea, and the fabric is exported to Guatemala.
The thread used to sew the garment is formed and finished in Honduras and exported to Guatemala.
In Guatemala, the fabrics are cut and sewn, and the components are assembled into the finished garment.
Styles USM3Burlington-C, USM3Burlington-P, and V104Burlington are exported directly from Guatemala to the United States.
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; 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.
As each of the goods contains non-originating materials, each must undergo the applicable change in tariff classification specified in GN 29(n) in order to meet the requirements of GN 29(b)(ii)(A). In addition, each good must meet any applicable chapter rules found in GN 29(n), Chapter 62.
For Style USM3Burlington-C, classified in subheading 6203.33, HTSUS, GN 29(n)/62.12 requires:
A change to subheadings 6203.31 through 6203.33 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:
(A) 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, and
(B) any visible lining material contained in the apparel article must satisfy the requirements of chapter rule 1 to chapter 62.
Further, the chapter rules that apply to Style USM3Burlington-C are 2, 1, 4, and 5.
GN 29(n), Chapter 62, Chapter rule 2 states:
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 classification of Style USM3Burlington-C is the polyester woven fabric of the outer shell of the garment. Therefore, this fabric is the only component that must satisfy the tariff shift rule set out in GN 29(n)/62.12. As described above, this fabric is woven in Mexico from filaments extruded in Mexico. While Mexico is not a party to DR-CAFTA, GN 29(d)(vii) sets forth the DR-CAFTA cumulation provision, which states:
Notwithstanding other provisions of this note, for purposes of determining whether a good of chapter 62 of the tariff schedule is an originating good, materials used in the production of such a good that are produced in the territory of Canada or of Mexico and that would be originating under this note if produced in the territory of a party to the Agreement shall be considered as having been produced in the territory of a party to the Agreement, provided that the United States Trade Representative has determined in a notice published in the Federal Register that the requirements of Appendix 4.1-B of the Agreement specified in subdivision (a) of this note have been met with respect to Canada or Mexico, as the case may be, and has announced the effective date of U.S. note 21 to subchapter XXII of chapter 98 of the tariff schedule. Such goods shall be entered under subheading 9822.05.05 of the tariff schedule, subject to the terms of such U.S. note 21, on or after the effective date specified in such notice. [Compiler's Note: effective with respect to materials from MX, 8/15/08; reference to subheading 9822.05.05 is obsolete and current provisions appear to be 9822.05.11 and 9822.05.13.]
You have provided documentation certifying that the outer shell fabric of Style USM3Burlington-C is woven in Mexico of yarn formed in Mexico entirely from Mexican materials. Accordingly, the fabric would be originating had it been woven within the DR-CAFTA territory.
The Chapter 98 subheading applicable to Style USM3Burlington-C is 9822.05.11. The garment is subject to the quantitative limitation set out in that subdivision, as described in Chapter 98, U.S. note 21(b).
GN 29(n), Chapter 62, Chapter rule 1 states, in pertinent part:
the fabrics identified in the following headings and subheadings, when used as visible lining material in certain men's suit-type jackets must be both formed from yarn and finished in the territory of one or more of the parties to the Agreement:
5111 through 5112, 5208.31 through 5208.59, 5209.31 through 5209.59, 5210.31 through 5210.59, 5211.31 through 5211.59, 5212.13 through 5212.15, 5212.23 through 5212.25, 5407.42 through 5407.44, 5407.52 through 5407.54, 5407.61, 5407.72 through 5407.74, 5407.82 through 5407.84, 5407.92 through5407.94, 5408.22 through 5408.24, 5408.32 through 5408.34, 5512.19, 5512.29, 5512.99, 5513.21 through 5513.49, 5514.21 through 5515.99, 5516.12 through 5516.14, 5516.22 through 5516.24, 5516.32 through 5516.34, 5516.42 through 5516.44, 5516.92 through 5516.94, 6001.10, 6001.92, 6005.35 through 6005.44, or 6006.10 through 6006.44.
The visible lining material of the main body of the garment is produced in Korea. However, you state that this fabric is classifiable in subheading 5407.69, which is not one of the tariff numbers listed in Chapter 62, Chapter rule 1. We will assume this classification is correct, although U.S. Customs and Border Protection may decide to verify its accuracy at time of entry. Because 5407.69 is not listed in Chapter rule 1, this chapter rule is satisfied.
You also state that the visible lining fabric of the garment sleeves is produced in China, and that it is classifiable in subheading 5407.52, which is one of the tariff numbers listed in Chapter rule 1. However, Chapter rule 2 states, in relevant part:
If the rule requires that the good must satisfy the tariff change requirements for visible lining fabrics listed in chapter rule 1, such requirement shall only apply to the visible lining fabric in the main body of the garment, excluding sleeves.
Accordingly, the fabric of the sleeve lining may be disregarded when determining whether Chapter rule 1 has been met.
GN 29(n), Chapter 62, Chapter rule 4 states, in relevant part:
Notwithstanding chapter rule 2, 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 or more parties to the Agreement.
You have provided documentation certifying that the thread used to sew StyleUSM3Burlington-C is classifiable under headings 5401 and/or 5508, and that each was formed and finished in Honduras. Accordingly, Chapter rule 4 is satisfied.
GN 29(n), Chapter 62, Chapter rule 5 states, in relevant 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 more parties to the Agreement.
You have provided documentation and additional information certifying that the pocket bag fabric of Style USM3Burlington-C is formed in the United States of yarns wholly formed in the United States, and that the fabric is finished in Mexico. Accordingly, Chapter rule 5 is satisfied through the application of GN 29(d)(vii).
For Style USM3Burlington-P, classified in subheading 6203.43, HTSUS, GN 29(n)/62.15 requires:
A change to subheadings 6203.41 through 6203.49 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 parties to the Agreement.
Further, the chapter rules that apply to Style USM3Burlington-P are 2, 4, and 5.
Regarding Chapter rule 2 (cited above), the component that determines the classification of Style USM3Burlington-P is the polyester woven fabric of the main body of the garment. Therefore, this fabric is the only component that must satisfy the tariff shift rule set out in GN 29(n)/62.15. As described above, this fabric is woven in Mexico of yarn formed in Mexico entirely from Mexican materials. Accordingly, Chapter rule 2 is satisfied through the application of GN (d)(vii).
The Chapter 98 subheading applicable to Style USM3Burlington-P is 9822.05.11. The garment is subject to the quantitative limitation set out in that subdivision, as described in Chapter 98, U.S. note 21(b). Specifically, Style USM3Burlington-P is subject to the sublimit set out in U.S. Note 21(b)(i) through the application of the tariff number under which it would have been classified at the time DR-CAFTA was implemented; i.e., 6203.43.40.
Regarding Chapter rule 4 (cited above), you have provided documentation certifying that the thread used to sew Style USM3Burlington-P is classifiable under headings 5401 and/or 5508, and that each was formed and finished in Honduras. Accordingly, Chapter rule 4 is satisfied.
Regarding Chapter rule 5 (cited above), you have provided documentation certifying that the pocket bag fabric of Style USM3Burlington-P was formed and finished in Nicaragua of yarns wholly formed in Nicaragua and Honduras. Accordingly, Chapter rule 5 is satisfied.
For Style V104Burlington, classified in 6211.33, HTSUS, GN 29(n)/62.38 requires:
A change to subheadings 6211.31 through 6211.39 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 parties to the Agreement.
Further, the chapter rules that apply to Style V104Burlington are 2 and 4.
Regarding Chapter rule 2 (cited above), the component that determines the classification of Style V104Burlington is the polyester woven fabric of the front panels. Therefore, this fabric is the only component that must satisfy the tariff shift rule set out in GN 29(n)/62.38. As described above, this fabric is woven in Mexico of yarn formed in Mexico entirely from Mexican materials. Accordingly, Chapter rule 2 is satisfied through the application of GN (d)(vii).
The Chapter 98 subheading applicable to Style V104Burlington is 9822.05.11. The garment is subject to the quantitative limitation set out in that subdivision, as described in Chapter 98, U.S. note 21(b).
Regarding Chapter rule 4 (cited above), you have provided documentation certifying that the thread used to sew Style V104Burlington is classifiable under headings 5401 and/or 5508, and that each was formed and finished in Honduras. Accordingly, Chapter rule 4 is satisfied.
Based on the facts provided, Styles USM3Burlington-C, USM3Burlington-P, and V104Burlington qualify for preferential tariff treatment under the DR-CAFTA, because each meets the requirements of HTSUS, GN 29(b)(ii)(A). Each good will therefore be entitled to a free rate of duty under the DR-CAFTA 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 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