CLA-2-62:RR:NC:TA:358 F87342
Mr. Ray Fragola
Director of Imports
Lady Ester Lingerie Corp.
16 East 34th Street
New York, NY 10016
RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of a girl’s dress from Mexico; Article 509
Dear Mr. Fragola:
In your letter dated May 10, 2000, you requested a ruling on the tariff classification and status of a girl’s long sleeve dress, Style 26948, from Mexico under the NAFTA.
The submitted sample is of mixed components. The high waisted bodice is knitted polyester velour. The skirt liner is woven polyester taffeta. The skirt outer layer is shear and is knitted nylon. The knit polyester velour is made in Taiwan. The skirt lining and outer layer netting are, per your statement, “originating in the United States.” You have stated in a telephone conversation that the polyester filament used to make the taffeta is extruded in the United States, and that all subsequent processes occur in the United States.
The component, which imparts the essential character, is the woven polyester taffeta lining. The dress will be imported in size newborn to 24 months and toddler sizes 2T to 4T.
The applicable tariff provision for the infant’s dress will be 6209.30.3040, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for babies’ garments and clothing accessories, of synthetic fibers, other, other. The general rate of duty is 16.4% ad valorem. The applicable tariff provision for the toddler dress will be 6204.43.4040, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for, among other garments, girls’ dresses, of synthetic fibers, other, other, girls’. The general rate of duty is 16.4% ad valorem
The infant’s dress falls within textile category designation 239. The toddler dress falls within textile category 636. Based upon international textile trade agreements, products of Mexico in category 239 and 636 are not subject to quota or the requirements of a visa.
The designated textile and apparel categories and their quota and visa status are the
result of international agreements that are subject to frequent renegotiations and changes. To obtain the most current information, we suggest that you check, close to the time of shipment, the U.S. Customs Service Textile Status Report, an internal issuance of the U.S. Customs Service, which is available at the Customs Web site at www.customs.gov. In addition, the designated textile and apparel categories may be subdivided into parts. If so, visa and quota requirements applicable to the subject merchandise may be affected and should also be verified at the time of shipment.
You inquire as to whether the girl’s dress may be considered NAFTA originating goods. The knit polyester velour is originating in Taiwan and all other components originate in the U.S. and/or Mexico.
As stated previously, the essential character of the Style 26948 dress is imparted by the woven polyester taffeta lining.
LAW AND ANALYSIS:
General Note 12, HTSUS, which incorporates Article 401 of the NAFTA, into the HTSUS. 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....
In this case, the dress will not be wholly obtained or produced entirely in the territory of Canada, Mexico and/or the U.S. Therefore, we turn to the rules applicable to goods of subheading 6204.43.4040, HTSUS, and subheading 6209.30.3040, HTSUS, where we have stated that the dress at issue is classifiable, which are provided for, respectively, in General Note 12(t)/62.24 and General Note 12(t)/62.32.
General Note 12(t)/62.24 provides:
A change to subheading 6204.41 through 6204.49 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, 5801 through 5802 or 6001 through 6002, provided that the good is both cut and sewn or otherwise assembled in the territory of one or more of the NAFTA parties.
General Note 12(t)/62.32 provides:
A change to subheading 6206 through 6210 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, 5801 through 5802 or 6001 through 6002, provided that the good is both cut and sewn or otherwise assembled in the territory of one or more of the NAFTA parties.
In applying the above cited rules, Note 12(t)/62, Chapter rule 3, must also be applied. That rule states:
For 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. If the rule requires that the good must also satisfy the tariff change requirements for visible lining fabrics listed in chapter rule 1 for this chapter, such requirement shall only apply to the visible lining fabric in the main body of the garment, excluding sleeves, which covers the largest surface area, and shall not apply to removable linings.
For purposes of this ruling request, the component that determines the tariff classification of the good is the polyester taffeta lining. As this fabric is made of polyester of heading 5407 from filament which is extruded in the United States and further processed here, it satisfies the tariff change requirements of the notes. The other components may be disregarded in determining whether the dress is eligible for NAFTA preferential tariff treatment. As provided by Chapter rule 3, General Note 12(t)/62.24 and General Note 12(t)/62.32, only apply to the component that determines the tariff classification of the good. As the knitted polyester velour and knitted shear nylon netting do not determine the tariff classification of the dress, they may be disregarded. Accordingly, we find that the girl’s dress will qualify for NAFTA preferential treatment, including duty free treatment, upon return to the U.S assuming the polyester is extruded in the territory of one or more of the NAFTA parties and all subsequent operations performed there.
The merchandise qualifies for preferential treatment under the NAFTA assuming the materials used in the production of the goods undergo the change in tariff classification required by General Note 12(t)/62.24, HTSUSA and General Note 12(t)/62.32.
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 Bruce Kirschner at 212-637-7079.
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