CLA-2-61:RR:NC:TA:354 D80276
Mr. John B. Pellegrini
Ross & Hardies
65 East 55 Street
New York, New York 10022-3219
RE: The tariff classification and status under the North American Free Trade
Agreement (NAFTA), of string knit gloves from Mexico; Article 509
Dear Mr. Pellegrini:
In your letter dated July 16, 1998 you requested a ruling on the status of
gloves from Mexico under the NAFTA, on behalf of Paris Accessories, Inc.
The provided sample, style 85-628 is a string-knit glove with a hemmed
ribbed knit cuff. You have indicated that the glove is made of acrylic chenille
yarn (classifiable in Heading 5606) which was produced in Taiwan, and hemmed
with man-made fiber thread of unknown origin. The glove will be knitted in
Mexico.
The applicable tariff provision for the glove will be 6116.93.8800,
Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which
provides for gloves, mittens and mitts, knitted or crocheted: other: of
synthetic fibers: other: other: without fourchettes. The duty rate will be 19.3
percent ad valorem.
NAFTA Eligibility
The subject string-knit glove undergoes processing operations in Mexico
which is a country provided for under the North American Free Trade Agreement
(NAFTA). General Note 12, HTSUSA, incorporates Article 401 of the North
American Free Trade Agreement (NAFTA) into the HTSUSA. Note 12(a) provides, in
pertinent part:
* * *
(ii) Goods that originate in the territory of a NAFTA party under
subdivision (b) of this note and that qualify to be marked as goods of Mexico
under the terms of the marking rules... and are entered under a subheading for
which a rate of duty appears in the "Special" subcolumn followed by the symbol
"MX" in parentheses, are eligible for such duty rate... . [Emphasis added]
Accordingly, the string knit glove at issue will be eligible for the
"Special" "MX" rate of duty provided it is a NAFTA "originating" good under
General Note 12(b), Harmonized Tariff Schedule of the Unites States Annotated
(HTSUSA), and it qualifies to be marked as a good of Mexico. Note 12(b)
provides, in pertinent part,
For the purposes of this note, goods imported into the customs territory of
the United States are eligible for the tariff treatment and quantitative
limitations set forth in the tariff schedule as "goods originating in the
territory of a NAFTA party" only if--
(i) they are goods wholly obtained or produced entirely in
the territory of Canada, Mexico and/or the United States; or
(ii) they have been transformed in the territory of Canada,
Mexico and/or the United States so that--
(A) except as provided in subdivision (f) of this note, each of the
non-originating materials used in the production of such goods undergoes a
change in tariff classification described in subdivisions (r), (s) and (t) of
this note or the rules set forth therein, or
(B) the goods otherwise satisfy the applicable requirements of
subdivisions (r), (s) and (t) where no change in tariff classification is
required, and the goods satisfy all other requirements of this note; or
(iii) they are goods produced entirely in the territory of
Canada, Mexico and/or the United States exclusively from originating
materials; or
* * *
The subject glove qualifies for NAFTA treatment only if the provisions of
General Note 12(b)(ii)(A) are met, that is, if the merchandise is transformed in
the territory of Mexico so that the non-originating material (the yarn of
Taiwanese origin) undergoes a change in tariff classification as described in
subdivision (t).
As the knit glove is classifiable in subheading 6116.93.8800, HTSUSA,
subdivision (t), Chapter 61, rule 39, applies. That note states:
A change to subheadings 6113 through 6117 from any other chapter, except
from headings 5106 through 5113, 5204 through 5212, 5307 through 5308 or 5310
through 5311, chapter 54 or headings 5508 through 5516 or 6001 through 6002,
provided that the good is both cut (or knit to shape) and sewn or otherwise
assembled in the territory of one or more of the NAFTA parties.
The merchandise does not qualify for preferential treatment under the NAFTA
because one or more of the non-originating materials used in the production of
the goods will not undergo the change in tariff classification required by
General Note 12(t)/39, HTSUSA. The instant string-knit glove does not satisfy
the requirement that "the good is both cut (or knit to shape) and sewn or
otherwise assembled in the territory of one of more of the NAFTA parties. The
instant string-knit glove requires no sewing (assembly) to join separate
components, the minimal stitching to close the fingers and hem the cuffs is
considered part of the finishing process.
This ruling is being issued under the provisions of Part 181 of the Customs
Regulations (19 C.F.R. 181).
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 Brian Burtnik at 212-466-5880.
Should you wish to request an administrative review of this ruling, submit
a copy of this ruling and all relevant facts and arguments within 30 days of the
date of this letter, to the Director, Commercial Rulings Division, Headquarters,
U.S. Customs Service, 1300 Pennsylvania Ave. N.W., Washington, D.C. 20229.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division