The tariff classification and status under the North American Free Trade Agreement (NAFTA), of coveralls from Mexico; Article 509

N120175 September 21, 2010 CLA-2-62:OT:RR:NC:TA:357 CATEGORY: Classification TARIFF NO.: 6211.32.0010; 6211.33.0010 Ms. Carolina Alvarez IFR Workwear Inc. #14, 7896-49 Ave. Red Deer, AB T4P 2K2 Canada RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of coveralls from Mexico; Article 509 Dear Ms. Alvarez: In your letter dated August 12, 2010, you requested a ruling on the status of coveralls from Mexico under the NAFTA. Each of the garments is made for industrial applications and protects workers from risks associated with flash fires, arc flash or other electrical or heat exposure. They are made from flame resistant fabric. Although depicted in the attached documentation as being worn by both men and women, the garments are made according to men’s cutting specifications. Accordingly, they are classifiable as men’s. The first item, style 100, Nomex IIIA Coverall, is made from a woven, 6-ounce, synthetic fabric composed of 93% Nomex, 5% Kevlar and 2% carbon (for anti-static performance). It has a two-way front zipper closure covered by a flap, long sleeves with snaps at the cuffs, a standup collar with a hook and loop closure at the throat, partial elastic at the waist, slant pockets at the waist, patch pockets with flaps in the chest, rear patch pockets, long legs with snaps at the bottom hem and reflective tape with contrasting colored fabric at various points on the body, the legs and the sleeves. The second and third items, style 100, Kermel Coverall, and style 101, Indura Ultrasoft Coverall, have the same features as the style 100 Nomex IIIA Coverall, differing only in the composition of the fabric. The Kermel garment is composed of a woven 99% Kermel/1% carbon synthetic fabric, while the Indura garment is made from an 88% cotton/12% high tenacity nylon woven fabric. The fourth item, style 106, Indura Coverall, is made from a 100% cotton woven fabric. It has a front opening secured by a two-way zipper covered by a flap, long sleeves with a snap at the ends, a standup collar with a hook and loop closure at the throat, partial elastic at the waist, slant pockets at the waist, patch pockets in the chest and in the back, long legs and reflective tape with contrasting colored fabric at various points on the body, the legs and the sleeves. The applicable tariff provision for the style 100, Nomex IIIA Coverall and style 100, Kermel Coverall will be 6211.33.0010, Harmonized Tariff Schedule of the United States (HTSUS), which provides for other men’s coveralls, jumpsuits and similar apparel, of man-made fibers. The general rate of duty will be 16 percent ad valorem. The applicable tariff provision for the style 101, Indura Ultrasoft Coverall and style 106, Indura Coverall will be 6211.32.0010, Harmonized Tariff Schedule of the United States (HTSUS), which provides for other men’s coveralls, jumpsuits and similar apparel, of cotton. The general rate of duty will be 8.1 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/. For style 100, Nomex IIIA, fiber produced in the United States is spun into yarn and woven into fabric in Canada, then cut into parts and sewn into garments in Mexico. Other components include an IFR label made in Hong Kong, reflective trim, zipper, mesh insert and other labels made in Canada, and snaps, whose origin is not identified. For style 106, Indura Coverall, the cotton yarn is spun, dyed, finished and woven into fabric in the United States, then cut into parts and sewn into garments in Mexico. Other components include an IFR label made in Hong Kong, reflective trim, zipper, mesh insert and other labels made in Canada, and snaps, whose origin is not identified. 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. Based on the facts provided, styles 100, Nomex IIIA and 106 Indura qualify for NAFTA preferential treatment because it will meet the requirements of HTSUS General Note 12(b)(ii)(A). The goods will therefore be entitled to a Free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements. Based on the facts provided, the goods described above qualify for NAFTA preferential treatment, because they will meet the requirements of HTSUS General Note 12(t) Chapter 62, Chapter rule 3.  The chapter rule directs that only the component that determines the tariff classification must meet the terms of the shift rule.  The fabric for the body of the coveralls is the component that determines the classification.  Since the fabric is stated to be an originating material it does not have to meet the terms of the tariff shift rule.  We are unable to rule on the NAFTA status of styles 100 Kermel and 101 Indura Ultrasoft because we need to know where the man-made fiber was extruded. As a product of Mexico, each garment should be legibly, conspicuously and permanently marked “Made in” or “Product of” Mexico. 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 William Raftery at (646) 733-3047. Sincerely, Robert B. Swierupski Director National Commodity Specialist Division