The tariff classification and status under the North American Free Trade Agreement (NAFTA), of panty hose from Canada; Article 509

NY D83991 November 12, 1998 CLA-2-61:RR:NC:3:353 D83991 CATEGORY: Classification TARIFF NO.: 6115.11.0020, 6115.12.2000 Mr. Robert F. Domey Fritz Companies, Inc. 100 Walnut Street P.O. Box 2874 Champlain, NY 12919 RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of panty hose from Canada; Article 509 Dear Mr. Domey: In your letter dated October 23, 1998, on behalf of Wertex Hosiery Mills Incorporated, you requested a ruling on the status of panty hose from Canada under the NAFTA. The merchandise in question is 15, 20, 30, 40, or 70 denier nylon panty hose. The nylon filament yarn is produced in Korea or other countries and shipped to Canada. In Canada all other processes are performed to make the panty hose, such as knitting, toe closing, line closing, sewing, dyeing, straightening and packing. For purposes of this ruling, we assume the phrase "other countries" means countries other than the United States, Canada or Mexico. The applicable tariff provision for the 15, 20, 30 and 40 denier nylon panty hose will be 6115.11.0020, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for "Panty hose, tights, stockings, socks and other hosiery, including stockings for varicose veins, and footwear without applied soles, knitted or crocheted: Panty hose and tights: Of synthetic fibers, measuring per single yarn less than 67 decitex...Other." The general rate of duty will be 16.6% ad valorem. The applicable tariff provision for the 70 denier nylon panty hose will be 6115.12.2000, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for "Panty hose, tights, stockings, socks and other hosiery, including stockings for varicose veins, and footwear without applied soles, knitted or crocheted: Panty hose and tights: Of synthetic fibers, measuring per single yarn 67 decitex or more: Other." The general rate of duty will be 16.2% ad valorem. 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 (GN) 12(t)/61.39, HTSUSA, which provides for: A change to headings 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 heading 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. When the nylon filament yarn for the subject panty hose leaves Korea or other countries, it is classifiable as synthetic filament yarn of Chapter 54. As synthetic filament yarns of Chapter 54 are excepted by GN 12(t)61.39, the non-originating material from Korea or other counties does not undergo the requisite change in tariff classification. Accordingly, the merchandise is not eligible for the NAFTA preference. 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 Kenneth Reidlinger at 212-466-5881. 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