The status under the North American Free Trade Agreement (NAFTA) of boys’ knit T-shirts from Mexico.

N036029 August 29, 2008 CLA-2-61:OT:RR:NC:TA:N3:358 CATEGORY: Classification Mr. Simon Salame Micha Distribuidora De Ropa Viva, S.A. De C.V. Avena No. 513 2DO Piso Col. Granjas Mexico 08400 Mexico, D.F. RE: The status under the North American Free Trade Agreement (NAFTA) of boys’ knit T-shirts from Mexico. Dear Mr. Micha: In your letter dated August 12, 2008, you requested a ruling on the tariff classification and status under the North American Free Trade Agreement (NAFTA), of boys’ knit T-shirts and pullovers from Mexico. The submitted samples will be returned to you. We are unable to provide a ruling on the specific tariff classification for the garments you submitted because the samples are garment blanks and lack identifying style numbers. We can, however, for purposes of determining the status under NAFTA, indicate the two tariff headings under which these garments would be classified. You have submitted five garments, together with the fabric and yarn used to produce the garments. While we cannot specifically identify your submitted garments, we can state that they share certain common physical characteristics. They are boys’ T-shirts and pullovers constructed from 100% cotton jersey knit fabric and have rib knit crew necklines and straight hemmed bottoms. The fabric weight is in the range of 180 to 230 grams per square meter. Some fabric shells, according to you, will have printed fabric and some will have embroidery work, with the particular outcome dependent on customer preferences. The boys’ cotton T-shirts and pullovers fall within headings 6109 and 6110 of the Harmonized Tariff Schedule of the United States (HTSUS). You state that the yarn used to make the garments will be produced in India and exported to Mexico where it will be knit into cotton jersey knit fabric. The fabric will be dyed and/or bleached in Mexico. The fabric will then be cut into T-shirt and pullover components, sewn and assembled into finished garments. The yarn used to sew the garments will be produced in Mexico. The finished garments will be imported into the United States. You ask whether NAFTA preferential treatment applies to the finished garments. 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. The merchandise does not qualify for preferential treatment under the NAFTA because none of the above requirements are met. It is noted that the non-originating yarn from India used in the production of the goods will not undergo the change in tariff classification required by General Note 12(t)/61.35, HTSUS, which states: 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, or headings 5508 through 5516 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. However, noting Additional U.S. Note 3(a) to Section XI, HTS, the T-shirts and pullovers may be eligible to a preferential duty rate under the Tariff Preference Levels (TPL), which provides for a NAFTA rate to imports of a particular good up to the specified quantity indicated in Additional U.S. Note 3(f)(i), upon compliance with all applicable regulations. This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 C.F.R. 181) as well as Part 177 of the Customs Regulations (19 C.F.R. 177). Should it be subsequently determined that the information furnished is not complete and does not comply with 19 C.F.R.177.9 (b)(1), the ruling will be subject to modification or revocation. In the event there is a change in the facts previously furnished, this may affect the determination of country of origin. Accordingly, if there is any change in the facts submitted to Customs, it is requested that a new ruling request be submitted in accordance with 19 C.F.R. 177.2. A copy of this ruling letter 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 this ruling, contact National Import Specialist Bruce Kirschner at 646-733-3048. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division