Application for Further Review of Protest No. 4196-22-107960; Denial of Preferential Tariff Treatment; United States-Korea Free Trade Agreement Eligibility of Men’s Apparel

H324085 October 7, 2025 OT:RR:CTF:FTM H324085 MJD CATEGORY: Classification Center Director Apparel, Footwear, and Textiles Center of Excellence and Expertise U.S. Customs and Border Protection 555 Battery St., 4th Floor San Francisco, CA 94111 Attn: Adriana Garcia, Import Specialist RE: Application for Further Review of Protest No. 4196-22-107960; Denial of Preferential Tariff Treatment; United States-Korea Free Trade Agreement Eligibility of Men’s Apparel Dear Center Director: The following is our decision regarding the Application for Further Review (“AFR”) of Protest No. 4196-22-107960, timely filed by Grunfeld, Desiderio, Lebowitz, Silverman, and Klestadt LLP, on January 5, 2022, on behalf of their client, Rhoback LLC (hereinafter “Protestant”), concerning the eligibility of men’s pullovers and polos shirts for preferential tariff treatment under the United States-Korea Free Trade Agreement (“UKFTA”). The Protestant has requested that certain information submitted in connection with this AFR request be treated as confidential. Inasmuch as this request conforms to the requirements of 19 C.F.R. § 177.2(b)(7), the request for confidentiality is approved. The information contained within brackets will not be released to the public and will be withheld from published versions of this ruling. FACTS: The merchandise at issue are men’s quarter zip pullovers in style Canine (“the Canine Q- zips”), and men’s polo shirts in style Azalea (“the Azalea polos”). The Canine Q-zips are constructed from 54% polyester, 32% nylon, and 14% spandex finely knit fabric that measures 40 stiches per two centimeters in the direction the stiches were formed. The quarter zip pullovers feature a self-fabric stand-up collar with a zippered closure, long sleeves with self- 1 fabric cuffs, an embroidered logo on the left chest, a heat seal strip below the center rear collar, a half-moon sweat patch at the inner rear neckline, and a self-fabric bottom band that does not provide tightening to the bottom of the garments. The applicable subheading for the Canine Q- zips is subheading 6110.30.3053, Harmonized Tariff Schedule of the United States Annotated (“HTSUSA”), which provides for “Sweaters, pullovers, sweatshirts, waistcoats (vests) and similar articles, knitted or crocheted: Of man-made fibers: Other: Other: Other: Other: Other: Men’s or boys’: Other.” The Azalea polos are constructed from 92% polyester and 8% spandex knit fabric that measures more than 10 stitches per linear centimeter in both the horizontal and vertical directions. The polos feature a self-fabric collar; a left-over-right, partial front opening with three button closures; short, hemmed sleeves; an embroidered logo on the left chest; and a straight, hemmed bottom. The applicable subheading for the Azalea polos is 6105.20.2010, HTSUSA, which provides for “Men’s or boys’ shirts, knitted or crocheted: Of man-made fibers: Other: Men’s.” On August 31, 2020, the Protestant entered, 3,070 units (256 dozen) of men’s 54% polyester, 32% nylon, and 14% spandex quarter zips, 376 units of which were the Canine Q-zips, classifiable under subheading 6110.30, HTSUS, and 2,203 units (184 dozen) of men’s 92% polyester, 8% spandex knit short sleeve polos, 943 units of which were the Azalea polos, classifiable under subheading 6105.20, HTSUS, as eligible for preferential tariff treatment under the UKFTA. On February 4, 2021, the Center issued a Request for Information (“CBP Form 28”) stating that it was conducting an origin verification in accordance with 19 C.F.R. § 10.1026 and UKFTA Article 6.18 and that it needed documentation to substantiate the Protestant’s claim that the Canine Q-zips were eligible for preferential tariff treatment under the UKFTA. On February 4, 2021, CBP issued a Request for Information (“CBP Form 28”) seeking certain information from the Protestant to substantiate its origin claims. On May 11, 2021, CBP issued a proposed Notice of Action (“CBP Form 29”) requesting certain information to verify the originating status of the Canine Q-zips under the UKFTA. On June 17, 2021, CBP issued a CBP Form 29 advising the Protestant that a negative determination was made with respect to its claim for preferential tariff treatment under the UKFTA. Subsequently, CBP liquidated the entries on July 9, 2021, denying preferential tariff treatment under the UKFTA for the subject entries, which included the Canine Q-zips and Azalea polos. Counsel for the Protestant timely filed a protest on January 5, 2022, claiming that the imported merchandise qualified for preferential tariff treatment under the UKFTA. Specifically, the Protestant stated that the Canine Q-zips and the Azalea polos are cut, sewn, and assembled in South Korea from fabric made in South Korea of South Korean-origin yarn. With respect to the Canine Q-zips, the Protestant provides that the production process began with it placing an order for the subject merchandise with [***], the garment vendor, located in Busan, South Korea. Subsequently, [***], the garment vendor, entered into a subcontracting agreement with [***], the garment manufacturer, located in Busanjin-gu, South Korea, to make the subject Canine Q-zips. [***], the garment manufacturer, purchased the 54% polyester, 32% nylon, and 14% spandex fabric used to make the Canine Q-zips from [***], the fabric manufacturer, located in Gyeonggi-do, South Korea. The fabric is identified as SP- 2 4545NP: NY FDY 30/24 BR + PE DTY 50/72 SD + SPAN 40D. The fabric manufacturer, [***], was supplied the nylon yarn to make the fabric from [***], a nylon yarn dealer located in Gyeonggido, South Korea. [***], the nylon yarn dealer, was supplied the nylon yarn from [***], a nylon manufacturer located in Seoul, South Korea. The nylon yarn is identified as NY SDY 30/24 BR. [***], the fabric manufacturer, was supplied the spandex yarn to make the fabric by [***], a spandex yarn dealer located in Seoul, South Korea. [***], the spandex yarn dealer, was supplied the spandex yarn from [***], a spandex yarn manufacturer located in Gyeongsanguk- do, South Korea. The spandex yarn is identified as spandex 40DE. Lastly, the fabric manufacturer, [***], was supplied the polyester yarn used in the fabric from [***], the polyester yarn dealer located in Jongno-Gu, South Korea. The polyester yarn is identified as Polyester Draw Textured Yarn (FUZ, 50/72 4033S, AA, CNT). Once the fabric manufacturer, [***], received the yarns it makes the 54% polyester, 32% nylon, and 14% spandex fabric. The fabric is identified as SP-4545NP: NY FDY 30/24 BR + PE DTY 50/72 SD + SPAN 40D. After knitting the fabric, it is finished at [***], located in South Korea, to be prepared for printing. Then, [***], the fabric manufacturer, prints the fabric with the artwork. [***], the garment vendor, pays [***], the fabric manufacturer, for the printed fabric and has it sent to [***], the garment manufacturer. [***], the garment manufacturer, cuts the fabric into necessary components and assembled those components into the finished Canine Q-zips. When [***], the garment manufacturer, finished the Canine Q-zips, [***], the garment vendor, exported the finished pullover from South Korea to the United States. In support of its argument, the Protestant provides a purchase order between it and [***], the garment vendor, for the manufacture of the men’s 54% polyester, 32% nylon, and 14% spandex quarter zips that included the manufacture of the Canine Q-zips; the subcontracting agreement between [***], the garment vendor, and [***], the garment manufacturer, for the manufacture of Canine Q-zips; a bill of materials that identifies all of the components used in the production of the Canine Q-zips that identifies the country of origin of the fabric as South Korea and the rest of the components as “unknown,” and names the supplier of the components; the fabric detail sheets for the Canine Q-zips, which identifies the fabric number as SP-4545NP, the garment manufacturer [***], and the garment vendor [***]; and a packing list, trucking receipt, and trucking invoice evidencing the sale and shipment of the fabric. The Protestant also provides invoices evidencing the sale of the polyester, nylon, and spandex yarns from the yarn manufacturers and yarn dealers. In addition, the Protestant provides a declaration of origin for the fabric issued by [***], the garment manufacturer, that identifies the supplier of the fabric [***], the garment vendor [***], the fabric number (SP-4545NP), the country of origin of the fabric as South Korea, and the classification of the fabric as under subheading 6004.10, HTSUS; and invoices evidencing the sale of the polyester, nylon, and spandex yarns from South Korean manufacturers and dealers to the fabric manufacturer, [***]. Moreover, the Protestant provides a declaration of origin from each of the yarn manufacturers and yarn dealers. Specifically, the Protestant provides a declaration of origin from [***], the nylon yarn manufacturer, to [***], the nylon yarn dealer, stating that the country of origin of the nylon yarn is South Korea; a declaration of origin from [***], the nylon yarn dealer, to [***], the 3 fabric manufacturer, providing that the country of origin of the nylon yarn is South Korea; a declaration of origin from [***], the polyester yarn dealer, to [***], the fabric manufacturer, providing that the country of origin of the polyester yarn is South Korea; a declaration of origin from [***], the spandex yarn manufacturer, to [***], the spandex yarn dealer, providing that the country of origin of the spandex yarn is South Korea; and a declaration of origin from [***], the spandex yarn dealer, to [***], the fabric manufacturer, providing that the country of origin of the spandex yarn is South Korea. Lastly, and at the request of CBP for further information, the Protestant provided additional details in the form of a Word document, regarding the production process of each yarn used in the Canine Q-zips. The production steps are as follows: a. Polyester Yarn – [***], the yarn manufacturer, spun the yarn and sold it to [***], a yarn supplier. [***], the yarn supplier, sold the yarn to [***], the fabric manufacturer, to use it for knitting the fabric. The polyester yarn is identified as Polyester Draw Textured Yarn (FUZ, 50/72 4033S, AA, CNT). The polyester yarn is made by extruding pellets through spinnerets to form long threads which are twisted together to create the yarn. b. Spandex Yarn – [***], the yarn manufacturer, spun the yarn and sold it to [***], the yarn supplier. [***], the yarn supplier, sold the yarn to [***], the fabric manufacturer, to use it for knitting the fabric. The spandex yarn is identified as Spandex 40DE. The spandex is produced via dry spinning. This process involves dissolving polymers in solvent and spinning them into a continuous filament. Then, the filaments are drawn to desired quality (strength/elasticity, etc). c. Nylon Yarn – [***], the yarn manufacturer, spun the yarn and sold it to [***], the nylon yarn supplier. [***], the yarn spinner, sold the yarn to [***], the fabric manufacturer, to use it for knitting the fabric. The nylon yarn is identified as NY SDY 30/24 BR. The nylon yarn is made by melting the polymers and extruding through a spinneret. The resulting fibers are stretched to desired strength/elasticity and then spun into yarn. With respect to the Azalea polos, the Protestant provides that the production process began with them placing an order for the subject merchandise with [***], the garment vendor. Subsequently, [***], the garment vendor, entered into a subcontracting agreement with [***], the garment manufacturer, located in Busan, South Korea to manufacture the subject Azalea polos. [***], the garment manufacturer, purchased the 92% polyester and 8% spandex fabric used to make the Azalea polos from [***], located in Daegu, South Korea, which printed the fabric with artwork after it was finished at [***], located in Gyeonggi-do, South Korea. The finishing process includes applying an adhesive agent so the design applied during printing will stick to the fabric. [***], located in Gyeonggi-do, South Korea, knits the 92% polyester and 8% spandex fabric used to make the Azalea polos. The fabric is identified as 75/72 DTY SD + SPAN 30D. [***], the fabric knitter, obtained the polyester yarn used in the fabric from [***], a yarn supplier located in Gyeonggi-do, South Korea, which obtained the yarn from [***], the polyester yarn spinner located in Gyeongsangbuk-do, South Korea. The polyester yarn is identified as polyester draw Textured Yarn DTY 075/072 RSD. 4 [***], the fabric knitter, obtained the spandex yarn used in the fabric from [***], the spandex yarn supplier located in Gyeonggi-do, South Korea, which obtained that yarn from [***], the spandex yarn spinner in Gyeongsangbuk-do, South Korea. The spandex yarn is identified as Spandex 30DE. Once [***], the fabric knitter, received the yarns and knit the 92% polyester and 8% spandex fabric, [***], the garment manufacturer, cut the fabric into necessary components and assembled those components into the finished Azalea polos. When the Azalea polos were completed, [***], the garment vendor, exported the polos from South Korea to the United States. In support of its argument, the Protestant provides a purchase order between themselves and [***], the garment vendor, for the manufacture of the Azalea polos; the subcontracting agreement between [***], the garment vendor, and [***], the garment manufacturer; a bill of material that identifies all of the components used in the production of the subject Azalea polos, which identifies the country of origin of the fabric as South Korea and the rest of the components as “unknown,” and names the supplier of the components; the fabric detail sheets identifying the fabric printer [***], the buyer [***], and the fabric composition (92% polyester, 8% spandex); a packing list, trucking receipt, and tax invoice evidencing the sale and shipment of the fabric used to make the Azalea polos; declaration of origins that details the sale of the fabric from [***], the fabric knitter, to [***], the fabric finisher, to [***], the fabric printer, and for the sale of the fabric from [***], the fabric printer, to [***], the garment vendor. The Protestant also provides invoices evidencing the sale of the polyester and spandex yarns from the yarn manufacturers and yarn dealers. In addition, the Protestant provides declarations of origin from each of the yarn manufacturers and yarn dealers. Specifically, the Protestant provides a declaration of origin from [***], the polyester yarn spinner, to [***], the polyester yarn supplier, providing that the country of origin of the polyester yarn is South Korea; a declaration of origin providing that [***], the polyester yarn supplier, supplied the polyester yarn to [***], the fabric knitter, stating that the country of origin of the polyester yarn is South Korea; a declaration of origin providing that [***], the spandex yarn spinner, provided the spandex yarn to [***], the spandex yarn supplier, showing the country of origin of the yarn is South Korea; and a deceleration of origin between [***], the spandex yarn supplier, to [***], the fabric knitter, showing that the country of origin of the spandex yarn is South Korea Lastly, and at the request of CBP for further information, the Protestant provided additional details in the form of a Word document, specifics regarding the production process of each yarn used in the Azalea polos. The production steps are as follows: a. Polyester Yarn – [***], the polyester yarn spinner, spun the yarn and sold it to [***], the yarn supplier. [***], the yarn supplier, sold the yarn to [***], the fabric knitter, to use it for knitting the fabric. The polyester yarn is identified as Polyester Draw Textured Yarn DTY 075/072 RSD. The polyester yarn is made by extruding pellets through spinnerets to form long threads which are twisted together to create a yarn. b. Spandex Yarn – [***], the spandex yarn spinner, spun the yarn and sold it to [***], the spandex yarn supplier. [***], the spandex yarn supplier, sold the yarn 5 to [***], the fabric knitter, to use it for knitting the fabric. The spandex yarn is identified as Spandex 30DE. The spandex is made via solution dry spinning. This process involves dissolving polymers in solvent and spinning into a continuous filament. Then, the filaments are drawn to desired quality (strength/elasticity, etc). ISSUE: Whether the Canine Q-zips and Azalea polos imported from South Korea are eligible for preferential tariff treatment under the UKFTA. LAW AND ANALYSIS: The requirements for eligibility for preferential tariff treatment under the UKFTA are set forth in General Note (“GN”) 33 of the HTSUS (19 U.S.C. § 1202). GN 33 provides in pertinent part: (b) For the purposes of this note subject to the provisions of subdivisions (c), (d), (n) and (o) thereof, a good imported into the customs territory of the United States is eligible for treatment as an originating good of a UKFTA country under the terms of this note if- (i) The good is wholly obtained or produced entirely in the territory of Korea or of the United States, or both. (ii) The good is produced entirely in the territory of Korea or of the United States, or both, and- A. Each of the nonoriginating materials used in the production of the good undergoes an applicable change in tariff classification specified in subdivision (o) of this note; or B. The good otherwise satisfies any applicable regional value- content or other requirements set forth in such subdivision (o); and satisfies all other applicable requirements of this note and of applicable regulations; or (iii) The good is produced entirely in the territory of Korea or of the United States, or both, exclusively from materials described in subdivisions (i) or (ii), above. With respect to textile and apparel articles, GN 33(d), HTSUS, states as follows: (i) For purposes of this note, a textile or apparel good provided for in 6 subheadings 4202.12, 4202.22, 4202.32 or 4202.92, chapters 50 through 63, heading 7019 or subheading 9404.90 of the tariff schedule is an originating good if: A. each of the nonoriginating materials used in the production of the good undergoes an applicable change in tariff classification specified in subdivision (o) of this note as a result of production occurring entirely in the territory of Korea or of the United States, or both, or the good otherwise satisfies the applicable requirements of this note where a change in tariff classification for each nonoriginating material is not required, and B. the good satisfies any other applicable requirements of this note. The provisions of subdivision (o) of this note shall not apply in determining the country of origin of a textile or apparel good for nonpreferential purposes. Since the Canine Q-zips and Azalea polos are made with non-originating materials, they are not considered goods wholly obtained or produced entirely in the territory of South Korea or of the United States, or both under GN 33(b