The tariff classification of a brassiere from the Dominican Republic or Mexico; Assembly

NY B85110 May 30, 1997 CLA-2-62:RR:NC:WA:354 B85110 CATEGORY: Classification TARIFF NO.: 6212.10.9020; 9802.00.8065; 9802.00.90 Ms. Sandra Tovar CST, Inc. P. O. Box 1197 Fayetteville, GA 30214 RE: The tariff classification of a brassiere from the Dominican Republic or Mexico; Assembly Dear Ms. Tovar: In your letter received by U. S Customs on May 1, 1997 you requested a tariff classification ruling on behalf of Playtex Apparel, Inc. You have submitted a sample of brassiere style 4163. The cups, cup lining, center, side panels and fiberfill is 100% polyester. The lining for the center, sides and cup extension is 100% nylon. The back is 81% nylon 19% spandex. The item also features a double hook and eye adjustable closure at the back, elasticized adjustable shoulder straps and an elasticized bottom band. Scalloped lace trim surrounds the cups and extends along the shoulder straps. The applicable subheading for style 2114 will be 6212.10.9020, HTS, which provides for brassieres, girdles, corsets, braces, suspenders, garters and similar articles and parts thereof, whether or not knitted or crocheted: brassieres: of man-made fibers. The rate of duty will be 17.8 percent ad valorem. You provide two scenarios for manufacture. In the first you indicated that the component parts of the brassiere are formed and cut United States. The exception is the scalloped lace trim which is knit in Mexico with Mexican yarns. The U. S. fabricated components are send to Mexico for assembly. In the second scenario the U. S. formed component raw materials are cut in either Puerto Rico or the U. S. The cut components along with the Mexican lace trim are shipped to the Dominican Republic for assembly and returned through the port of San Juan, Puerto Rico. For the first scenario we note that Subheading 9802.00.90, HTSUS, was created to provide for the duty-free entry of: Textile and apparel goods, assembled in Mexico in which all fabric components were wholly formed and cut in the United States, which (a) were exported in condition ready for assembly without further fabrication, (b) have not lost their physical identity in such articles by change in form, shape or otherwise, and (c) have not been advanced in value or improved in condition abroad except by being assembled and except by operations incidental to the assembly process; provided that goods classifiable in chapters 61, 62, or 63 may have been subject to bleaching, garment dyeing, stone-washing, acid-washing or perma-pressing after assembly as provided for herein. In view of the fact that the enactment of subheading 9802.00.90, HTSUS, specifically was intended to extend duty-free and quota-free status to all goods assembled in Mexico, which previously were eligible for entry under the Special Regime Program administered under U.S. tariff item 9802.00.8010, HTSUS, it is Customs view that all of the policy directives implementing this program should be considered applicable for our administration of subheading 9802.00.90, HTSUS. One such policy under the Special Regime Program included the allowance of "findings, trimmings and certain elastic strips of foreign origin" to be incorporated into the assembled good provided they do "not exceed 25 percent of the cost of the components of the assembled article." See 54 Fed. Reg. 50425 (December 6, 1989). Therefore, the brassieres assembled in Mexico may be entered free of duty, under 9802.00.90 HTS as long as, with the exception of findings, trimmings, (in this case lace trim) and elastic strips not exceeding 25 percent of the total cost of all components, all fabric components contained therein are U.S.- formed (i.e., the fabric is woven or milled in the U.S.), this fabric is cut in the U.S., and the other conditions of the statute are satisfied. For the second scenario an allowance in duty may be made under the following tariff provision for the cost or value of the American-made components before exportation to Dominican Republic. The brassiere to be imported will be entitled to partial duty exemption under HTS subheading 9802.00.8065, upon compliance with the regulations. Subheading 9802.00.8065, HTS, provides for articles assembled abroad in whole or part of fabricated components, the product of the United States. The foreign origin lace trim is considered dutiable. This ruling is being issued under the provisions of Parts 177 & 181 of the Customs Regulations (19 C.F.R. 177 & 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. Sincerely, Paul K. Schwartz Chief, Textiles & Wearing Apparel Br. National Commodity Specialist Division