The tariff classification and status under the North American Free TradeAgreement (NAFTA), of a woman's knitted dress from Mexico; Article 509

NY C85764 June 24, 1998 CLA-2-61:RR:NC:TA:359 C85764 CATEGORY: Classification TARIFF NO.: 6104.43.2010 Ms. Sandra Tovar CST, Inc. P.O. Box 1197 Fayetteville, GA 30214 RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of a woman's knitted dress from Mexico; Article 509 Dear Ms. Tovar: In your letter dated March 19, 1998, on behalf of Halmode, Inc., 501 Seventh Avenue, New York City, you requested a ruling on the status of a woman's knitted dress from Mexico under the NAFTA. We are returning your submitted sample. You state that the sample represents these style numbers: 05-424/5/6/7/8/9/KL and 05-430/1/2/3/4/5/KL. The variations are the result of differences in the sleeve length and the color of the dress. The sample is a woman's knitted dress that consists of 100% polyester fibers made into a velour fabric. It has a round neckline and long sleeves and it extends below the wearer's mid-thigh. You state that the fabric is knit in Taiwan, then exported to the United States for transshipment to Mexico. Incidental parts (tape, labels, etc.) and packaging materials are made in the United States and sent to Mexico. In Mexico the fabric is cut and sewn into the dresses, the incidental parts are added, and the finished garment is shipped to the United States. In your submission you also state that, "since fabric is being supplied free of charge to the contractor, a constructed value statement will be used to declare all values. . . ." You ask our opinion of your valuation proposal, however, we note that a determination of the appraised value of a particular shipment of goods must be made at the time of entry upon presentation of all appropriate documentation to the Customs import specialist. The applicable tariff provision for the dress will be 6104.43.2010, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for women's dresses, knitted or crocheted: of synthetic fibers: other. The general rate of duty will be 16.6 percent ad valorem. The dress falls within textile category designation 636. Based upon international textile trade agreements products of Mexico (the dress, of man-made fibers is not subject to quota and the requirement of a visa. Since quota and visa restrictions are the result of international bilateral agreements which are subject to frequent renegotiations and changes, to obtain the most current information available, we suggest that you check, close to the time of shipment, the Status Report on Current Import Quotas (Restraint Levels), an internal issuance of the U.S. Customs Service, which is available for inspection at your local Customs office. 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)/20, HTSUSA. However, the dress may qualify for a preferential duty rate under the Tariff Preference Levels (TPLs) as defined in the Harmonized Tariff Schedule (HTS), Section XI, Additional U.S. Note 3(b). Since the dress is cut and sewn in Mexico, it may qualify for the reduced rate up to the quantity specified in U.S. Note 3(g), provided that, when imported, it is accompanied by a Certificate of Eligibility. 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 Michael Crowley at 212-466-5852. 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