CLA-2-61:OT:RR:NC:N1:361
Mr. Kevin Flynn
The Production Department
431 Maple Ave Pittsburgh, PA 15218
RE: The tariff classification and status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA), of a women’s knit top from El Salvador
Dear Mr. Flynn:
In your letter dated December 17, 2024, you requested a ruling on behalf of your client, Alo Yoga, on the classification and eligibility under the DR-CAFTA of a women’s knit top. Your submitted sample will be retained in our office.
Style W9862R is a women’s sleeveless top with a built-in shelf bra that is securely sewn at the top of the garment. The top is constructed from 78 percent nylon, and 22 percent elastane knit fabric. The top has a U-shaped front neckline, shoulder straps measuring over 2 inches in width, extends from the shoulders to the hips, and has a straight hemmed bottom with side seam slits. The primary shelf bra portion has a mesh lining constructed from 83 percent nylon and 17 percent elastane knit fabric, and the secondary shelf bra lining is constructed from 92 percent polyester and 8 percent elastane jersey knit fabric. The shelf bra reaches just below the bust with a ¾ inch elasticized banded bottom.
You suggest style W9862R is classified under subheading 6109.90.1065, Harmonized Tariff Schedule of the United States (HTSUS), which provides for T-shirts, singlets, tank tops and similar garments, knitted or crocheted: Of other textile materials: Of man-made fibers: Women’s or girls’: Tank tops and singlets: Women’s. We disagree with your proposed classification. The features enumerated above are all consistent with classification as a top with a built-in shelf bra.
The applicable subheading for style W9862R will be 6114.30.1020, HTSUS, which provides for Other garments, knitted or crocheted: Of man-made fibers: Tops: Women’s. The duty rate will be 28.2 percent ad valorem.
Your request also concerns the eligibility of style W9862R for preferential tariff treatment under the DR-CAFTA.
The manufacturing operations are as follows:
For the main body (shell fabric) of the garment, U.S. filament yarns are exported to El Salvador. In El Salvador, the yarns are knit into fabric.
For the primary and secondary lining of the garment, the filament yarns are exported from Taiwan and Korea to El Salvador. In Taiwan the yarns are knit into fabric.
For the elastic knit fabric of heading 6002 used in the bottom band of the shelf bra is shipped from Guatemala to El Salvador.
The polyester sewing thread used to sew the garment is formed in the United States and finished in Cost Rica.
In El Salvador, the fabrics are cut, sewn and assembled into the finished garment.
The finished garments are exported directly from El Salvador 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 the good contains non-originating materials, it must undergo an 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 any applicable chapter rules found in GN 29(n), Chapter 61.
For goods classified in heading 6114.30, General Note 61.38 requires: A change to headings 6114 through 6116 from any other chapter, except from headings 5111 through 5113, 5204 through 5212, 5310 through 5311, chapter 54, 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 to the Agreement.
Further, the chapter rules that must be considered are 2, 3, and 4. However, GN 29(n), Chapter 61, 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 W9862R is the man-made knit fabric of the top. Therefore, this is the only component that must satisfy the specific rule of origin set out in GN 29(n)/61.38. As described above, the fabric is knit in El Salvador from yarns formed in the United States of U.S. fibers, and since the fabric is stated to be an originating material it does not have to meet the terms of the tariff shift rule. Further, as noted above, this fabric is cut, sewn, and assembled into the finished garment in El Salvador. Accordingly, GN 29(n)/61.38 is satisfied.
For goods classified in heading 6114, General note 29(n), Chapter 61 rule 3 also applies and states:
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 elastic knit fabric of the bottom band of the shelf bra is of knit construction, it is not classifiable under subheading 5806.20. Further, because the knit elastic of heading 6002 used in the bottom band of the shelf bra is shipped from Guatemala to El Salvador it is considered formed from yarn and finished in the territory of one or more of the parties to the Agreement.
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.
The polyester sewing thread, used to assemble the garment, classifiable in 5401, will be formed in the United States and finished in Costa Rica. Accordingly, Chapter rule 4 is satisfied.
Based on the facts provided, style W9862R qualifies for CAFTA-DR preferential treatment, because it meets the requirements of HTSUS General Note 29 (b)(ii)(A). The merchandise will therefore be entitled to a free rate of duty under the CAFTA-DR 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 Antoinette Peek-Williams at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division