The tariff classification and status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA), of blankets from Honduras, El Salvador or the Dominican Republic.

N028806 June 6, 2008 CLA-2-63:OT:RR:NC:TA:349 CATEGORY: Classification TARIFF NO.: 6301.40.0020 Ms. Nikki Adams Fruit of the Loom One Fruit of the Loom Drive Bowling Green, KY 42102-9015 RE: The tariff classification and status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA), of blankets from Honduras, El Salvador or the Dominican Republic. Dear Ms. Adams: In your letter dated May 9, 2008, received by this office on May 20, 2008, you requested a ruling on the status of blankets from Honduras, El Salvador or the Dominican Republic under the DR-CAFTA. The submitted sample is a blanket referred to as Style # 815T / 815TR. It is made from 60 percent polyester and 40 percent cotton knit fleece fabric. The blanket measures 48 x 60 inches and has rounded corners. The edges are finished with an overlock stitch (serged). The thread used for the overlock stitch is a single yarn made up of multiple polyester monofilaments. It is not considered a sewing thread for tariff purposes. The cotton fibers are grown in the United States and two thirds of the polyester staple fibers (40 percent by weight) are produced in the United States. The remaining third of the polyester fibers (20 percent by weight), referred to as the black polyester staple fibers, are produced in a non DR-CAFTA country. The fibers are blended, carded and spun into the 60/40 polyester and cotton yarn in the United States. The yarn is shipped to either a fabric manufacturer in the United States or a DR-CAFTA country where it is knitted to form the fleece fabric. The fabric is then shipped to Honduras, El Salvador or the Dominican Republic to be cut and sewn into the finished blanket. The yarn used for the overlock stitch is made in the United States with the bleaching, dyeing, finishing and twisting applied in the DR-CAFTA country. The blankets are packed and shipped to the United States. The applicable tariff provision for the blankets will be 6301.40.0020, Harmonized Tariff Schedule of the United States (HTSUS), which provides for blankets and traveling rugs: blankets (other than electric blankets) and traveling rugs, of synthetic fibers. The general rate of duty will be 8.5 percent ad valorem. The blanket falls within textile category 666. 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. General Note 29, HTSUS, sets forth the criteria for determining whether a good is originating under the DR-CAFTA. General Note 29(b), HTSUS, (19 U.S.C. § 1202) states, in pertinent part, that For the purposes of this note, subject to the provisions of subdivisions (c), (d), (m) and (n) thereof, a good imported into the customs territory of the United States is eligible for treatment as an originating good under the terms of this note if— (i)the good is a good wholly obtained or produced entirely in the territory of one or more of the parties to the Agreement; (ii) the good was produced entirely in the territory of one or more of the parties to the Agreement, and— (A) each of the nonoriginating materials used in the production of the good undergoes an applicable change in tariff classification specified in subdivision (n) of this note; or (B) the good otherwise satisfies any applicable regional value content or other requirements specified in subdivision (n) of this note; and the good satisfies all other applicable requirements of this note; or (iii) the good was produced entirely in the territory of one or more of the parties to the Agreement exclusively from originating materials. Based on the facts provided, the goods described above qualify for DR-CAFTA preferential treatment, because they will meet the requirements of HTSUS General Note 29(b)(ii)(A). For subheading 6301, HTSUS, the appropriate subdivision (n) change in tariff classification rule requires: A change to headings 6301 through 6302 from any other chapter, except from headings 5111 through 5113, 5204 through 5212, 5310 through 5311, chapter 54, headings 5508 through 5516, 5801 through 5802, or 6001 through 6006, provided that the good is cut or knit to shape, or both, and sewn or otherwise assembled in the territory of one or more of the parties to the Agreement. When exported from the non DR-CAFTA country the black polyester staple fibers are classified in heading 5503, HTSUS. Those fibers are transformed within the DR-CAFTA territories into yarn then into fabric and finally into blankets. The goods will therefore be entitled to a Free rate of duty under the DR-CAFTA 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 John Hansen at 646-733-3043. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division