CLA-2-62:OT:RR:NC:N3: 348
Andrianne Pangborn
Workwear Outfitters LLC
545 Marriott Drive, Suite 200
Nashville, TN 37214
Dear Ms. Pangborn:
In your letter dated June 12, 2024, you requested a binding ruling on the tariff classification and eligibility of textile nameplates under the United States-Mexico-Canada Agreement (USMCA).
The submitted sample, item EM3033, is a textile nameplate. The item measures 6 length and 1 width. The nameplate is constructed from an outer layer of 100% cotton twill woven fabric and a backing of 100% nylon hook and loop fabric. The nameplate is embroidered to identify a person's name and is made to attach to a shirt using a corresponding strip of hook and loop fabric.
Classification:
The applicable subheading for item EM3033 will be 6217.10.9530, Harmonized Tariff Schedule of the United States, (HTSUS), which provides for Other made-up clothing accessories; parts of garments or of clothing accessories, other than those of heading 6212: Accessories; Other; Other; Of man-made fibers. The rate of duty will be 14.6% ad valorem.
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 main components of the woven nameplate are the outer layer of cotton twill woven fabric originating from the United States and the 1'' width nylon, hook and loop backing fabric originating from Taiwan. The sewing thread is extruded, formed, and finished in Mexico. The embroidery thread is formed and finished in the United States. In Canada, the 8 rectangular twill fabric is cut and folded to 5 and 6 lengths. Lettering is embroidered on the twill fabric and then sewn to the hook and loop fabric.
USMCA:
The USMCA was signed by the Governments of the United States, Mexico, and Canada on November 30, 2018. The USMCA was approved by the U.S. Congress with the enactment on January 29, 2020, of the USMCA Implementation Act, Pub. L. 116-113, 134 Stat. 11, 14 (19 U.S.C. 4511(a)). General Note ("GN") 11 of the HTSUS implements the USMCA. GN 11(b) sets forth the criteria for determining whether a good is an originating good for purposes of the USMCA. GN 11(b) states:
For the purposes of this note, a good imported into the customs territory of the United States from the territory of a USMCA country, as defined in subdivision (l) of this note, is eligible for the preferential tariff treatment provided for in the applicable subheading and quantitative limitations set forth in the tariff schedule as a "good originating in the territory of a USMCA country" only if-
(i) the good is a good wholly obtained or produced entirely in the territory of one or more USMCA countries;
(ii) the good is a good produced entirely in the territory of one or more USMCA countries, exclusively from originating materials;
(iii) the good is a good produced entirely in the territory of one or more USMCA countries using non-originating materials, if the good satisfies all applicable requirements set forth in this note (including the provisions of subdivision (o));
Since textile nameplates contain non-originating materials, they are not considered goods wholly obtained or produced entirely in a USMCA country under GN 11(b)(i) and (ii). We must next determine whether the name plates qualify under GN 11(b)(iii).
The applicable rule of origin for merchandise under subheading 6217, HTSUS, is in GN 11(o), HTSUS, which provides, in relevant part:
General Note 11 (0), Chapter 62, Chapter rule 2 states:
For the purposes of determining the origin of a good of this chapter, 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 the rule for that good.
The main components of the textile nameplates are the originating cotton twill woven fabric and the non-originating nylon hook and loop fabric.
General Note 11 (0), Chapter 62, Chapter rule 4 states:
Effective 12 months from the date of entry into force of the agreement, and notwithstanding chapter rule 2 of this chapter, a good of this chapter containing sewing thread of headings 5204, 5401 or 5508, or yarn of heading 5402 used as sewing thread shall be considered originating only if such sewing thread is both formed and finished in the territory of one or more of the USMCA countries.
The sewing thread used to assemble the item will be formed and finished in one or more of the parties to the Agreement.
For goods classified in heading 6217, General Note 11/62.19 requires:
A change to headings 6213 through 6217 from any other chapter, except from headings 5106 through 5113, 5204 through 5212, 5310 through 5311, chapter 54 or headings 5508 through 5516, 5801 through 5802 or 6001 through 6006, provided that the good is both cut and sewn or otherwise assembled in the territory of one or more of the USMCA countries.
Since the non-originating nylon fabric of heading 5806, HTSUS, is classified in a heading other than headings 5106 through 5113, 5204 through 5212, 5310 through 5311, chapters 54 through 55 or headings 5801 through 5802 or 6001 through 6006, or other made-up textile articles of heading 9619, the tariff shift rule is met. Accordingly, the nameplate is eligible for USMCA preferential tariff treatment pursuant to GN 11(b)(iii).
Based on the information provided, Item EM3033 qualifies for preferential tariff treatment under the USMCA when imported into the United States from Canada as described.
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.
In your letter, you also requested classification and origin of the textile nameplates if all materials were shipped together in equal quantities but unassembled. Further information is necessary to complete this request.
When this information is available, you may wish to consider resubmission of your request. If you decide to resubmit your request, you may resubmit it electronically at https://erulings.cbp.gov/s/. Please include all of the material that we have returned to you. Please mail the samples to: U.S. Customs and Border Protection, National Commodity Specialist Division, 1 World Trade Center, Suite 51.201 New York, NY 10007 (Attention: NIS 348 Rosemarie Hayward). You may resubmit the ruling request electronically while simultaneously express mailing a sample to this address.
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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 Rosemarie Hayward at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division