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

N031349 July 9, 2008 CLA-2-61:OT:RR:NC:TA:348 CATEGORY: Classification TARIFF NO.: 6104.44.2010 BJ Shannon Alston and Bird 950 F Street, NW Washington, DC 20004 RE: The tariff classification and status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA), of ladies’ knit dresses from Honduras, El Salvador, Dominican Republic, Guatemala or Nicaragua. Dear Ms. Shannon: In your letter dated June 17, 2008, on behalf of your client Buhler Quality Yarns, you requested a ruling on the status of ladies’ knit dresses under the DR-CAFTA. Style S70054 is a women’s dress which you state is constructed of 50% cotton 50% micromodal fiber knitted fabric. For purposes of this ruling, we are assuming that what you call micromodal fiber is actually an artificial fiber which is derived from modal. The dress features a boat neckline with two decorative non-functioning buttons on each shoulder, short sleeves with self-fabric cuffs, and a straight hemmed bottom. The dress extends from the shoulders to below the mid-thigh. You describe the garment as a pullover of 6110, Harmonized Tariff Schedule of the United States (HTSUS). However, based on styling, length and coverage, the garment is more properly described as a dress classifiable under 6104, HTSUS. Due to the fact that the dress is to be constructed of a 50/50 blend of fibers, it is classified using HTSUS Section XI Note 2(A) and Subheading Note 2(A). The dress will be classified as if it consisted wholly of that one textile material which is covered by the heading which occurs last in numerical order among those which equally merit consideration. Even a slight change in the fiber content may result in a change of classification, as well as visa and quota requirements. The dress may be subject to Customs laboratory analysis at the time of importation, and if the fabric is other than a 50/50 blend it may be reclassified by Customs at that time. The applicable tariff provision for style S70054 will be 6104.44.2010 HTSUS, which provides for women's or girls' suits, ensembles, suit-type jackets, blazers, dresses, skirts, divided skirts, trousers, bib and brace overalls, breeches and shorts (other than swimwear), knitted or crocheted, dresses, of artificial fibers, other, women’s. The general rate of duty will be 14.9 percent. 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/. The garment falls within textile category 636. 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 manufacturing operations for this garment are as follows: U.S. grown cotton and micromodal staple fibers, produced in a non-DR-CAFTA country, are blended. The blended fibers are spun into yarn in a DR-CAFTA country. The yarn is knitted into a fabric in a DR-CAFTA country. After the fabric has been knitted, it is cut, sewn and assembled into the finished good in a DR-CAFTA country and packaged for export to the U.S. The sewing thread used to assemble the garment is formed and finished in a DR-CAFTA country. 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. General Note 29 (n), Chapter 61, Chapter rule 2 states in pertinent part: For purposes of determining whether a good of this chapter is originating, the rule applicable to that good shall only apply to the component that determines the tariff classification of the good and such component must satisfy the tariff change requirements set out in the rule for that good. General Note 29 (n), Chapter 61, Chapter rule 4 states: Notwithstanding chapter rule 2 to this chapter, a good of this chapter containing sewing thread of headings 5204, 5401 and 5508 shall be considered originating only if such fabrics are both formed from yarn and finished in the territory of one or more of the parties to the Agreement. General Note 29 (n), 61.20 requires: A change to headings 6104.41 through 6104.49 from any other chapter, except from headings 5111 through 5113, 5204 through 5212, 5310 through 5311, chapter 54, headings 5508 through 5516 or 6001 through 6006, provided that the good is both cut or sewn or otherwise assembled in the territory of one or more of the parties to the Agreement. The component that determines the classification of the good is the knit fabric. The knit fabric contains micromodal staple fiber that is produced in a non-DR-CAFTA country. The micromodal staple fiber would be classified in heading 5504, if not carded or combed or heading 5507, if carded or combed. The micromodal staple fibers meet the terms of the tariff shift rule. The knit fabric will be cut, sewn and assembled within the territory of one or more of the parties to the Agreement. The sewing thread used to assemble the garment will be formed and finished in one or more the parties to the Agreement. Based on the facts provided, style S70054, qualifies for DR-CAFTA preferential treatment, because it meets the requirements of HTSUS General Note 29(b)(ii)(A). The merchandise will therefore be entitled to a free rate of duty under the DR-CAFTA upon compliance with all applicable laws, regulations, and agreements. Please note that separate Federal Trade Commission marking requirements exist regarding country of origin, fiber content, and other information that must appear on many textile items. You should contact the Federal Trade Commission, Division of Enforcement, 600 Pennsylvania Avenue, N.W., Washington, D.C., 20580, for information on the applicability of these requirements to this item. Information can also be found at the FTC website www.ftc.gov (click on “For Business” and then on “Textile, Wool, Fur”). 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