The tariff classification and status under the North American Free Trade Agreement (NAFTA), of men’s knit garments from Canada and China; Article 509

NY H86104 December 26, 2001 CLA-2-61:RR:NC:TA:356 H86104 CATEGORY: Classification TARIFF NO.: 6110.20.2010; 6110.20.2065 Ms. Karanda Ho L&K Knitters (Canada) Inc. 245 West Beaver Creek Road, Unit 1 Richmond Hill, Ontario, Canada L4B 1L1 RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of men’s knit garments from Canada and China; Article 509 Dear Ms. Ho: In your letter dated November 9, 2001, you requested a ruling on the status of two styles of men’s knit garments from Canada and China under the NAFTA. Style M-407 is a men’s sleeveless sweater constructed from 100 percent cotton, jersey knit fabric that measures 5 stitches per two centimeters counted in the horizontal direction. Style M-407 has a rib knit crew neckline and a rib knit bottom. The front and back panels are knit to shape with self-start bottoms, self-finished sides, and full fashion shaping at the armholes. Style M-412 is a men’s pullover garment constructed from 100 percent cotton, 1 x 1 rib knit fabric that measures 25 stitches per two centimeters counted in the horizontal direction. Style M-412 has a rib knit V-neckline; long sleeves with self-finished cuffs; and a self-finished bottom. The front and back panels and the sleeves are knit to shape with self-start bottoms, self-finished sides, and full fashion shaping at the armholes. You state that the cotton yarn used in the garments originates in the United States. The yarn is sent to Canada where the front and back panels and the sleeve panels are knit to shape. The panels are then sent to China where they are assembled into finished garments by looping. The finished garments are washed, ironed, packed and inspected before shipment to the United States. The applicable tariff provision for Style M-407 will be 6110.20.2010, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for sweaters, pullovers, sweatshirts, waistcoats (vests) and similar articles, knitted or crocheted: of cotton: other: other: sweaters: men’s. The general rate of duty is 17.8 percent ad valorem. In 2002, the general rate of duty will be 17.3 percent ad valorem. The applicable tariff provision for Style M-412 will be 6110.20.2065, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for sweaters, pullovers, sweatshirts, waistcoats (vests) and similar articles, knitted or crocheted: of cotton: other: other: other: men’s or boys’. The general rate of duty is 17.8 percent ad valorem. In 2002, the general rate of duty will be 17.3 percent ad valorem. Style M-407 falls within textile category designation 345 and Style M-412 falls within textile category designation 338. Based upon international textile trade agreements, products of Canada are not subject to visa requirements or quota restraints. The designated textile and apparel categories and their quota and visa status are the result of international agreements that are subject to frequent renegotiations and changes. To obtain the most current information, we suggest that you check, close to the time of shipment, the U.S. Customs Service Textile Status Report, an internal issuance of the U.S. Customs Service, which is available at the Customs Web Site at WWW.CUSTOMS.GOV. In addition, the designated textile and apparel categories may be subdivided into parts. If so, visa and quota requirements applicable to the subject merchandise may be affected and should also be verified at the time of shipment. As all of the major parts of both styles are knit to shape in Canada, the country of origin of Styles M-407 and M-412 is Canada, the country in which the panels are knit to shape. The merchandise does not qualify for preferential treatment under the NAFTA because the knit to shape panels are assembled outside the NAFTA territories and do not fulfill the requirements of General Note 12 (t)/ 61.35, HTSUSA. In addition, these garments do not qualify for a reduced rate of duty under the Tariff Preference Levels as defined in Section XI, Additional U.S. Note 3 (a). 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 Mary Ryan at 646-733-3271. 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