The tariff classification and status under the North American Free Trade Agreement (NAFTA), of men’s pullover garments from Mexico and Columbia; Article 509 and the Andean Trade Promotion and Drug Eradication Act (ATPDEA).

N032555 July 29, 2008 CLA-2-61:OT:RR:NC:TA:348 CATEGORY: Classification TARIFF NO.: 6110.30.3053; 9821.11.07 Tony Ferguson Patagonia 259 West Santa Clara Street Ventura, CA 93001 RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of men’s pullover garments from Mexico and Columbia; Article 509 and the Andean Trade Promotion and Drug Eradication Act (ATPDEA). Dear Mr. Ferguson: In your letter dated June 30, 2008, you requested a ruling on the status of men’s pullover garments under NAFTA and ATPDEA. The submitted garment, Style 86135, “Men’s Longsleeve, Hooded, Rashguard.” is a men’s pullover garment constructed from 84% polyester, 16% spandex finely knit fabric. The garment has a self-fabric hood with a drawcord and cord lock; a neoprene bill on the hood; long, hemmed sleeves; a zippered pocket on the lower back panel; and a hemmed bottom. The applicable subheading for Style 86135 will be 6110.30.3053, Harmonized Tariff Schedule of the United States, (HTSUS), which provides for: sweaters, pullovers, sweatshirts, waistcoats (vests) and similar articles, knitted or crocheted: of man-made fibers: other: other: other: other: men’s or boys’. The rate of duty is 32% ad valorem. 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 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 With the exception of certain products of China, quota/visa requirements are no longer applicable for merchandise which is the product of World Trade Organization (WTO) member countries.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. The manufacturing operations for Style 86135 from Mexico are as follows: The polyurethane and polyester yarns are manufactured in the U.S. The yarns are knitted into fabric and then dyed and finished in the U.S. The fabric is then shipped to Mexico. The neoprene fabric is manufactured in Japan and shipped to Mexico. In Mexico, the fabrics are cut, sewn and assembled into the finished garment. The garment is exported directly from Mexico 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 nonoriginating 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. General Note 29 (n), 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, 5801 through 5802 or 6001 through 6006, provided that the good is both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or more of the NAFTA parties. 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. The component that determines the classification of the good is the knit fabric. Since the fabric is stated to be an originating material, it does not have to 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. Based on the facts provided, Style 86135, qualifies for NAFTA preferential treatment, because they meet the requirements HTSUS General Note 12(b)(ii)(B). The merchandise would therefore be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements. Alternatively, Style 86135 will be cut, sewn and assembled in Colombia. The garment will be shipped directly from Colombia into the U.S. Colombia is an ATPDEA beneficiary country in accordance with U.S. note 1 to subchapter 9821. ATPDEA, 9821.11, HTSUS, requires: Apparel articles sewn or otherwise assembled in one or more such countries or the United States or both, exclusively from… fabrics or yarns, provided apparel of such fabrics or yarns would be considered an originating good under the terms of general note 12(t) to the tariff schedule without regard to the source of the fabric or yarn if such apparel article had been imported from the territory of Canada or the territory of Mexico directly into customs territory of the United States. ATPDEA, U.S. Note 4(a) states in pertinent part, A textile or apparel article otherwise eligible for preferential treatment under the provisions of this subchapter shall not be ineligible for such treatment because the article contains- findings or trimmings of foreign origin, if the value of such findings and trimmings does not exceed 25 percent of the cost of the components of the assembled article. For the purposes of subdivision 4(a)(i), findings or trimmings eligible under such subdivision include sewing thread, hooks and eyes, snaps, buttons, “bow buds”, decorative lace trim, elastic strips, zippers (including zipper tapes), labels and other similar products. We determined above that the garment would qualify for NAFTA preferential treatment when it is assembled in Mexico. Since ATPDEA rule of origin references General Note 12(t) of the NAFTA rules, and based on the information that you supplied, provided all requirements are met, Style 86135 would be eligible for duty free treatment under subheading 9821.11.07, HTSUS. 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