Classification and country of origin determination for men’s apparel; 19 CFR 102.21(c)(2); tariff shift; the status under the North American Free Trade Agreement (NAFTA); Article 509.

N028797 June 13, 2008 CLA-2-61:OT:RR:NC:TA:348 CATEGORY: Classification TARIFF NO.: 6101.30.2010, 6103.43.1520, 6110.30.3040 Nikki Adams Fruit of the Loom 1 Fruit of the Loom Drive P.O. Box 90015 Bowling Green, KY 42102 RE: Classification and country of origin determination for men’s apparel; 19 CFR 102.21(c)(2); tariff shift; the status under the North American Free Trade Agreement (NAFTA); Article 509. Dear Ms. Adams: In your letter dated May 9, 2008, you requested a ruling on the status of men’s sweatpants, sweatshirts and jackets under NAFTA. Style 993M / 993MR is a men’s jacket constructed from 50% polyester, 50% cotton, finely knit fabric that is napped on the inside surface. Style 993M / 993MR has a self-fabric hood with a drawstring, a full front opening with a zippered closure, long sleeves with rib knit cuffs, pouch pockets below the waist, and a rib knit bottom. Style 973M / 973MR is a men’s sweatpant constructed from 50% polyester, 50% cotton, finely knit fabric that is napped on the inside surface. Style 973M / 973MR has a covered elastic waistband with an inside drawcord and covered elastic at the ankles. Style 562M / 562MR is a men’s sweatshirt constructed from 50% polyester, 50% cotton, finely knit fabric that is napped on the inside surface. Style 562M / 562MR has a rib knit crew neckline, long sleeves with rib knit cuffs, and a rib knit bottom. Style 996M / 996MR is a men’s hooded sweatshirt constructed from 50% polyester, 50% cotton, finely knit fabric that is napped on the inside surface. Style 996M / 996MR has a lined, self-fabric hood with a drawstring, long sleeves with rib knit cuffs, pouch pockets below the waist, and a rib knit bottom. For Styles 993M / 993MR, 973M / 973MR, 562M / 562MR, and 996M / 996MR, the 50% polyester, 50% cotton knit fabric determines the classification of the good. At the time of entry, Customs may verify the actual fiber content of Styles 993M / 993MR, 973M / 973MR, 562M / 562MR, and 996M / 996MR. If the fiber content differs from that indicated in your letter, the tariff classification may change from the information indicated. Following note 2(A) of section XI, if no textile material predominates by weight, the garment is classifiable in the heading that occurs last in numerical order among those which equally merit consideration. Consequently, the applicable subheading for Style 993M / 993MR will be 6101.30.2010, Harmonized Tariff Schedule of the United States, (HTSUS), which provides for: men’s or boys’ overcoats, carcoats, capes, cloaks, anoraks (including ski-jackets), windbreakers, and similar articles, knitted or crocheted: other than those of heading 6103: of man-made fibers: other: other: men’s. The rate of duty is 28.2% ad valorem. The applicable subheading for Style 973M / 973MR will be 6103.43.1520, HTSUS, which provides for men’s or boys’… trousers, …knitted or crocheted: of synthetic fibers: trousers, breeches and shorts: other: trousers and breeches: men’s. The rate of duty will be 28.2% ad valorem. The applicable subheading for Styles 562M / 562MR and 996M / 996MR will be 6110.30.3040, HTSUS, which provides for: sweaters, pullovers, sweatshirts, waistcoats (vests) and similar articles, knitted or crocheted: of man-made fibers: other: other: other: other: sweatshirts: men’s or boy’s. The rate of duty is 32% ad valorem. Style 993M / 993MR falls within textile category designation 634. Style 973M / 973MR falls within textile category designation 647. Styles 562M / 562MR and 996M / 996MR fall within textile category designation 638. With the exception of certain products of China, quota/visa requirements are no longer applicable for merchandise which is the product of World Trade Organization (WTO) member countries. Quota and visa requirements are the result of international agreements that are subject to frequent renegotiations and changes. To obtain the most current information on quota and visa requirements applicable to this merchandise, we suggest you check, close to the time of shipment, the "Textile Status Report for Absolute Quotas" which is available on our web site at www.cbp.gov. For current information regarding possible textile safeguard actions on goods from China and related issues, we refer you to the web site of the Office of Textiles and Apparel of the Department of Commerce at otexa.ita.doc.gov. You state the yarn that will be used to manufacture the fabric is from 40% U.S. grown cotton, 40% polyester staple fibers produced in the U.S. and 20% black polyester staples fibers from a non-NAFTA country. The manufacturing operations for these garments are as follows: In U.S., the cotton and polyester fibers are blended. The fibers are carded and drawn, then spun into yarn. The spun yarn is wound onto a cylindrical or conical package and the packages are shipment to a fabric manufacturer in the U.S. After the fabric has been knitted, it is then shipped to a NAFTA country to be cut into the finished good and packaged for export to the U.S. 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. For goods classified in heading 6110, General Note 12/61.35 requires: A change to headings 6109 through 6111 from any other chapter, except from headings 5106 through 5113, 5204 through 5212, 5307 through 5308 or 5310 through 5311, chapter 54, headings 5508 through 5516 or 6001 through 6006, provided that the good is both cut and sewn or otherwise assembled in the territory of one or more of the NAFTA parties. The non-originating material is the black polyester staple fiber and would be classified in heading 5503. Those fibers are transformed within the NAFTA territories into yarn then into fabric and finally into sweatshirts, sweatpants and jackets. Based on the facts provided, the garments qualify for NAFTA preferential treatment, because they meet the requirements of HTSUS General Note 12(b)(ii)(A). The merchandise will therefore be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements. Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at http://www.usitc.gov/tata/hts/. This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177). 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 Rosemarie Hayward at 646-733-3064. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division