CLA-2-64:RR:NC:TP:347 C82349
Ms. Catherine L. Holmes
AW Fenton Co., Inc.
1157 Rarig Avenue
Columbus, OH 43219
RE: The tariff classification of leather footwear assembled in the Dominican Republic
Dear Ms. Holmes:
In your letter dated November 18, 1997, on behalf of your client, Rocky Shoes & Boots Co., Inc., you requested a tariff classification ruling.
You have submitted samples for four styles of leather footwear. You state that the importer sends all materials to the Dominican Republic to be made into shoe uppers and that the materials used in the uppers are all of U.S. origin. The materials are cut, assembled, and stitched to form the uppers in the first factory in the Dominican Republic. The uppers are then sent to a second factory in the Dominican Republic for finishing into a complete shoe. The completed samples that you have submitted are made up of leather uppers and rubber/plastic outer soles. You also state that all of the components used to finish the shoes are of U.S. origin except the outsole, which is made in China. You have also submitted cost breakdowns for each style:
1.Style 1760: 2. Style 1761:
Labor in Dominican Republic $2.10 per pair Labor in Dominican Republic $2.10 per pair
Outsole (c/o China) $2.65 per pair Outsole (c/o China) $2.65 per pair
U.S. components $13.63 U.S. components $14.72
Box, hang tags and stickers (U.S. origin) .94 Box, hang tags and stickers (U.S. origin) .94
3.Style 1762: 4.Style 1770:
Labor in Dominican Republic $2.10 per pair Labor in Dominican Republic $2.10 per pair
Outsole (c/o China) $2.65 Outsole (c/o China) $2.65
U.S. components $14.61 U.S. components $15.70
Box, hang tags and stickers (U.S. origin) $1.48 Box, hang tags and stickers (U.S. origin) .94
The shoes that you have submitted, as well as the hangtags attached, are marked "made in U.S.A." You also state that the box used to package the finished boots/shoes for sale to the ultimate consumer currently has "Made in the USA" written on top of the box and "Nelsonville, Ohio" on the left side in 1/4 inch lettering. Samples of the boxes have also been submitted. You ask for a ruling on the country of origin, as well as proper marking for the corrugated box that the shoes are to be packaged in for sale to the ultimate consumer.
The classification that would ordinarily apply to the footwear for styles 1760, 1761, and 1770, up to and including American men's size 8, would be 6403.91.90, HTSUS, which provides for footwear with leather uppers and plastic and/or rubber soles, covering the ankle, for other persons. The rate of duty is 10% ad valorem. For American men's sizes 8.5 and above, the applicable subheading would be 6403.91.60, Harmonized Tariff Schedule of the United States, HTSUS, which provides for footwear with leather uppers and plastic and/or rubber soles, covering the ankle, for men, youths and boys. The rate of duty is 8.5% ad valorem. For style 1762, the applicable subheading up to and including American men's size 8 would be 6403.99.90, HTSUS, which provides for footwear with leather uppers and plastic and/or rubber soles, not covering the ankle, for other persons, valued over $2.50 per pair. The rate of duty is 10% ad valorem. For American men's sizes 8.5 and above, the applicable subheading would be 6403.99.60, HTSUS, which provides for footwear with leather uppers and plastic and/or rubber outer soles, not covering the ankle, for men, youths and boys. The rate of duty is 8.5% ad valorem.
Subheading 9802.00.80, HTSUS, provides a partial duty exemption for articles assembled abroad in whole or in part of fabricated components of U.S. origin with no operations performed thereon except the joining of the components and operations incidental thereto. The U.S. components must be exported in condition ready for assembly without further fabrication, and cannot lose their physical identity in the assembled article by change in form, shape or otherwise. Duty is assessed on the full appraised value of the imported merchandise less the cost or value of the U.S.-made components, upon compliance with the documentation requirements of section 10.24, Customs Regulations (19 CFR 10.24).
From the information submitted, it is our opinion that the operations performed in the Dominican Republic on the shoes constitute a proper assembly operation under the provisions of subheading 9802.00.80, HTSUS. Upon compliance with the documentation requirements of 19 CFR 10.24, an allowance in duty for the cost or value of the U.S. components may be granted. The information substantiating 9802.00.80, HTSUS, must be submitted at the time of entry. The footwear should be marked with the phrase "Made in Dominican Republic," however, use of the phrase "Made in Dominican Republic of U.S. and imported parts" is also acceptable.
Inquiries concerning the use of the phrase "Made in U.S.A." should be directed to the Federal Trade Commission (FTC). The FTC address is: Federal Trade Commission, Division of Enforcement, 6th and Pennsylvania Avenue, N.W., Washington, D.C. 20580.
As you have stated, "Nelsonville, Ohio" is written on the left side of the box in 1/4 inch lettering. Section 134.46 of the Customs Regulations (19 CFR 134.46) provides that in any case where the words "U.S.," "American," or any variation of such words or letters, or the name of any city or locality in the U.S., or the name of any foreign country or locality other than the country or locality in which the article was manufactured or produced, appear on any imported article or its container, there shall appear, legibly and permanently, in close proximity to such words, letters or name, and at least in a comparable size, the name of the country of origin preceded by "Made in," "Product of," or other words of similar meaning.
In order to satisfy the close proximity requirement, the country of origin marking must generally appear on the same side(s) or surface(s) in which the name or locality other than the actual country of origin appears.
This ruling is being issued under the provisions of Part 177 of the Customs 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, contact National Import Specialist Richard Foley at 212-466-5890.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division