The tariff classification and status under the North American Free Trade Agreement (NAFTA) of cotton yarn from Pakistan; Article 509

NY K89423 September 15, 2004 CLA-2-52:RR:NC:N3:351 K89423 CATEGORY: Classification Florence Lai Import Supervisor Ash City 2111 McCowan Road Scarborough, Ontario Canada M1S 3Y6 RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA) of cotton yarn from Pakistan; Article 509 Dear Ms. Lai: In your letter dated August 31, 2004, you requested a ruling on the status of cotton yarn from Pakistan under the NAFTA. You state that cotton yarn will be spun in Pakistan from raw cotton grown in the United States. Your inquiry does not provide enough information for us to give a classification ruling on the cotton yarn. Your request for a classification ruling should include a sample and the following information: Is it 100% cotton? If not, what is the fiber content, in percentages by weight? Is it single or plied? is it combed or uncombed? What is the weight of each spool or cone of yarn as imported? Is it dressed for sewing thread? We are, however, able to rule on the eligibility of the cotton yarn under NAFTA. General Note 12(b), HTSUS, sets forth the criteria for determining whether a good is originating under the NAFTA. General Note 12(b), HTSUS, (19 U.S.C. § 1202) states, in pertinent part, that For the purposes of this note, goods imported into the customs territory of the United States are eligible for the tariff treatment and quantitative limitations set forth in the tariff schedule as "goods originating in the territory of a NAFTA party" only if-- (i) they are goods wholly obtained or produced entirely in the territory of Canada, Mexico and/or the United States; or (ii) they have been transformed in the territory of Canada, Mexico and/or the United States so that-- (A) except as provided in subdivision (f) of this note, each of the non-originating materials used in the production of such goods undergoes a change in tariff classification described in subdivisions (r), (s) and (t) of this note or the rules set forth therein, or (B) the goods otherwise satisfy the applicable requirements of subdivisions (r), (s) and (t) where no change in tariff classification is required, and the goods satisfy all other requirements of this note; or (iii) they are goods produced entirely in the territory of Canada, Mexico and/or the United States exclusively from originating materials; or (iv) they are produced entirely in the territory of Canada, Mexico and/or the United States but one or more of the non-originating materials falling under provisions for "parts" and used in the production of such goods does not undergo a change in tariff classification because-- (A) the goods were imported into the territory of Canada, Mexico and/or the United States in unassembled or disassembled form but were classified as assembled goods pursuant to general rule of interpretation 2(a), or (B) the tariff headings for such goods provide for and specifically describe both the goods themselves and their parts and is not further divided into subheadings, or the subheadings for such goods provide for and specifically describe both the goods themselves and their parts, provided that such goods do not fall under chapters 61 through 63, inclusive, of the tariff schedule, and provided further that the regional value content of such goods, determined in accordance with subdivision (c) of this note, is not less than 60 percent where the transaction value method is used, or is not less than 50 percent where the net cost method is used, and such goods satisfy all other applicable provisions of this note. The cotton yarn does not qualify for preferential treatment under the NAFTA because none of the above requirements are met. Specifically, the yarn is not produced in a NAFTA country, but in Pakistan. You also ask if fabrics and garments made from this yarn in the U.S. or Canada can qualify for preferential treatment under the NAFTA. In order to answer that question, we will need to know the specific manufacturing operations and where they will be performed. In addition, we will need to know exactly what kind of fabric and garments will be produced. When the above information is available, you may wish to consider resubmission of your request. If you decide to resubmit your request, please include a copy of this letter or refer to it by reference number K89423. 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 Mitchel Bayer at 646-733-3102. 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 and Border Protection, 1300 Pennsylvania Ave. N.W., (Mint Annex), Washington, D.C. 20229. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division