The tariff classification and status under the North American Free Trade Agreement (NAFTA), of women's dresses from Mexico; Article 509

NY 808523 April 26, 1995 CLA-2-62:S:N:N5:360 808523 CATEGORY: Classification TARIFF NO.: 6204.44.4010 Ms. Bren Hamilton Fritzi California 199 First Street San Francisco, CA 94105-9990 RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of women's dresses from Mexico; Article 509 Dear Ms. Hamilton: In your letter dated March 23, 1994, you requested a ruling on the status of women's dresses from Mexico under the NAFTA. The submitted sample, style 8701TG1D, is a women's dress constructed from an upper portion of 100% cotton knit fabric and a bottom portion of 56% acetate and 44% rayon woven fabric. The dress features short sleeves, a scoop neckline and a full front opening secured by eight buttons. The knit upper portion of the garment does not extend to the waist. You provided value and weight information to be used in determining the essential character of the dress. The knit portion weighs approximately 33.8% of the total weight, while the woven portion weighs 66.2%; the knit portion represents approximately 16.2% of the total value, while the woven portion represents 83.8%. Based on these factors, the essential character of the garment is imparted by the woven portion. You also provided the following information required to make a determination as to whether the garment qualifies as originating under the NAFTA. The fabric used in the construction of the garment is indicated to be "yarn forward-USA". By this, in the context of the NAFTA, the fibers are spun into yarn, and the yarn woven into fabric in the United States. Further, you state that the components will be cut in the United States and sewn in Mexico. The applicable tariff provision for style 8701TG1D will be 6204.44.4010, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for women's or girls' suits, ensembles, suit-type jackets and blazers, dresses... Of artificial fibers: Other: Other, Women's. The general rate of duty will be 16.9% ad valorem. The dress qualifies for preferential treatment under the NAFTA because materials used in the production of the goods undergoes the change in tariff classification required by General Note 12(t)/62.24, HTSUSA. The dress will be entitled to a 11.2% rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements. This garment will be assembled in Mexico from fabric woven in the United States. The fabric will be cut into components in the U.S. Under this circumstance, the items may be entered under subheading 9802.00.90, Harmonized Tariff Schedule of the United States (HTS), subject to a free rate of duty under the provisions of Mexican Special Regime, upon compliance with documentary requirements. Additionally, as NAFTA originating or Special Regime products, these items, when imported from Mexico, are not subject to quota or visa requirements. Finally, you questioned the country of origin for the imported dress which is assembled from U.S. components in a NAFTA country prior to being reimported into the U.S. Section 134.1(g) of the interim regulations, defines a "good of a NAFTA country" as an article for which the country of origin is Canada, Mexico or the United States as determined under the NAFTA Marking Rules. In this case, we find that the U.S. componnents are advanced in value or improved in condition as a result of the assembly operation in Mexico. Accordingly, pursuant to section 102.14 of the interim regulaations, the country of origin of the imported dress is Mexico, the last foreign country in which the good was advanced in value or improved in condition. This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 C.F.R. 181). A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise is imported. If the documents have been filed without a copy, this ruling should be brought to the attention of the Customs officer handling the transaction. 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, Office of Regulations and Rulings, U.S. Customs Service, 1301 Constitution Ave. N.W., Franklin Court, Washington, D.C. 20229. Sincerely, Jean F. Maguire Area Director New York Seaport