The tariff classification and status under the North American Free Trade Agreement (NAFTA), of an overall and jackets from Canada; Article 509

N039597 October 10, 2008 CLA-2-62:OT:RR:NC:3:353 CATEGORY: Classification TARIFF NO.: 6210.40.5020, 6210.40.5040 Mr. Joe Reaser Actionwear FR 114 Melville Street Saskatoon, Saskatchewan Canada S7J 0R1 RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of an overall and jackets from Canada; Article 509 Dear Mr. Reaser: In your letter received in this office on September 25, 2008, you requested a ruling on the status of a jacket and overalls from Canada under the NAFTA. Garment specifications and a sample of the shell fabric were supplied. The merchandise is Style 8330DV Bib-style Pant, and Styles JB60 and JL65 Jackets. All three items are constructed of an outer shell of woven Nomex®IIIA aramid fabric with a visible waterproof breathable polyurethane coating on the inner surface, and feature a quilted lining of Indura® woven 88% cotton, 12% nylon fabric and Thinsulate™ fiber fill insulation that is fire resistant. Style 8330DV Bib-style Pant is a men’s bib and brace overall with front and rear bibs, adjustable shoulder straps, two-way front and leg zippers, inside flies, two front patch pockets with flaps, two rear patch pockets, one tool pocket on the right leg, elastic back, and knee patches. Style JB60 Jacket is a men’s jacket with a full front zipper closure with a storm flap, collar with snaps for an optional hood, hanger loop, adjustable snap cuffs, two lower front slash pockets, pencil pocket on the left arm, inside pocket, and elastic sides at the waist. Style JL65 Jacket is a men’s jacket with a right over left full front snap closure, hanger loop, rib knit collar and cuffs, two lower front slash pockets, pencil pocket on the left arm, and an inside pocket. The manufacturing process is as follows: Nomex® IIIA staple fibers from either originating or non-originating sources are spun into yarn in the United States. The yarns are woven into Nomex® fabric and dyed and finished in the United States. The Indura® fabric is woven in the United States. The Indura® fabric and Thinsulate™ fiber fill insulation of Chinese origin are quilted together in the United States to form a quilted lining. The goods are shipped to Canada. In Canada, the polyurethane coating is applied to the Nomex fabric. In Canada the Nomex® fabric and quilted lining are cut to shape and sewn, assembled and finished into overalls or jackets. The applicable tariff provision for the Style 8330DV Bib-style Pant (bib and brace overall) will be 6210.40.5020, Harmonized Tariff Schedule of the United States (HTSUS), which provides for garments, made up of fabrics of heading 5602, 5603, 5903, 5906 or 5907: other men’s or boys’ garments: of man-made fibers: other: anoraks (including ski-jackets), windbreakers and similar articles. The general duty rate will be 7.1 percent ad valorem. The applicable tariff provision for the Styles JB60 and JL65 Jackets will be 6210.40.5040, Harmonized Tariff Schedule of the United States (HTSUS), which provides for garments, made up of fabrics of heading 5602, 5603, 5903, 5906 or 5907: other men’s or boys’ garments: of man-made fibers: other: overalls and coveralls. The general duty rate will be 7.1 percent 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/. Style 8330DV falls within textile category 659. Styles JB60 and JL65 fall within textile category 634. 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 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. Chapter 62, Chapter rule 3 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.For goods classified in heading 6210, General Note 12/62.32C requires: A change to headings 6208 through 6210 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, 5801 through 5802 or 6001 through 6006, provided that the good is both sewn or otherwise assembled in the territory of one or more of the NAFTA parties. . The component that determines the classification of the overall and jackets is the outer shell composed of woven Nomex®IIIA aramid fabric visibly coated with polyurethane. The Nomex® shell fabric may contain staple fibers that are produced in a non-NAFTA country. The staple fiber would be classified in heading 5503. The staple fibers meet the terms of the tariff shift rule. The Nomex® shell 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, the garments described above do qualify for NAFTA preferential treatment. The garments 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 181 of the Customs Regulations (19 C.F.R. 181). 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 Kenneth Reidlinger at (646) 733-3053. Sincerely, Robert B. Swierupski Director National Commodity Specialist Division