CLA-2-61:OT:RR:NC:N3:356
Ms. Stephanie Op
SanMar Corporation
22833 S.E. Black Nugget Road, Suite 130 Issaquah, WA 98029
RE: The tariff classification and status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA) of a men's T-shirt from Honduras
Dear Ms. Op:
In your letter dated June 18, 2024, you requested a ruling on the classification and status under the DR-CAFTA of a men's T-shirt from Honduras. Your submitted sample will be retained in our office.
Style PC147TBD2025 is a men's T-shirt constructed from 100 percent cotton, lightweight jersey knit fabric. The garment features a 98 percent cotton and 2 percent spandex, rib knit crew neckline; short, hemmed sleeves; and a straight, hemmed bottom.
The applicable subheading for Style PC147TBD2025 will be 6109.10.0012, Harmonized Tariff Schedule of the United States (HTSUS), which provides for: T-shirts, singlets, tank tops and similar garments, knitted or crocheted: Of cotton: Men's or boys': Other T-shirts: Men's. The general rate of duty will be 16.5 percent ad valorem.
Your request also concerns the eligibility of Style PC147TBD2025 for preferential tariff treatment under the DR-CAFTA.
The manufacturing operations are as follows:
For the main body and sleeves of the garment, U.S. cotton fibers are spun into yarns in the United States and exported to Honduras. In Honduras, the yarns are knit into fabric.
For the neckband of the garment, cotton yarns formed in the United States and spandex yarns formed in India are exported to Honduras. In Honduras, the yarns are knit into fabric.
The cotton thread used to sew the garment is formed and finished in Guatemala and exported to Honduras.
In Honduras, the fabrics are cut, sewn, and assembled into the finished garment.
The finished garments are exported directly from Honduras 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:
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 PC147TBD2025 contains non-originating materials, it 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, it must meet any applicable chapter rules found in GN 29(n), Chapter 61.
For goods classified in heading 6109, GN 29(n)/61.25 requires:
A change to headings 6105 through 6111 from any other chapter, except from headings 5106 through 5113, 5204 through 5212, 5307 through 5308, 5310 through 5311 or 5401 through 5402, subheadings 5403.20, 5403.33 through 5403.39, 5403.42 through heading 5408, or 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..
Further, the chapter rules that must be considered are 2, 3, and 4.
GN 29(n), Chapter 61, 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 tariff classification of Style PC147TBD2025 is the cotton fabric of the main body and sleeves. Therefore, this is the only component that must satisfy the tariff shift rule set out in GN 29(n)/61.25. As described above, this fabric is knit in Honduras of yarns formed in the United States of U.S. fibers. Since the fabric is an originating material, GN 29(n)/61.25 is satisfied.
GN 29(n), Chapter 61, Chapter rule 3 states, in relevant part:
Notwithstanding Chapter rule 2 to this chapter, a good of this chapter containing fabrics of subheading 5806.20 or heading 6002 shall be considered originating only if such fabrics are both formed from yarn and finished in the territory of one or more of the parties to the Agreement.
Because the fabric of the neckband is of knit construction, it is not classifiable under subheading 5806.20. Further, because this fabric contains less than 5 percent by weight of spandex, it is not classifiable in heading 6002. Accordingly, the garment is not subject to Chapter rule 3.
GN 29(n), Chapter 61, Chapter rule 4 states, in relevant 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 or more parties to the Agreement.
As described above, the cotton thread used to sew the garment, classifiable in heading 5204, is formed and finished in Guatemala. Accordingly, Chapter rule 4 is satisfied.
Based on the facts provided, Style PC147TBD2025 qualifies for DR-CAFTA preferential treatment, because it meets the requirements of HTSUS General Note 29(b)(ii). It 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