Classification and country of origin determination for women’s short sleeve pullovers 19 CFR 102.21(c)(2); tariff shift; the status under the North American Free Trade Agreement (NAFTA); Article 509.

N127035 October 26, 2010 CLA-2-61:OT:RR:NC:TA:348 CATEGORY: Classification TARIFF NO.: 6110.30.3059 Emilia Arroyo Jerry Leigh 7860 Nelson Road Van Nuys, CA 91402 RE: Classification and country of origin determination for women’s short sleeve pullovers 19 CFR 102.21(c)(2); tariff shift; the status under the North American Free Trade Agreement (NAFTA); Article 509. Dear Ms. Arroyo: In your letter dated October 7, 2010, you requested a ruling on the status of pullovers under the NAFTA. We are retaining the sample for our files. Style JT9748 is a women’s short sleeve pullover that is constructed from 90% cotton 10% polyester jersey fabric (the front panel, the raglan sleeves, and neckline trim) and 92% nylon 8% spandex openwork raschel lace-like knit fabric (the back panel). A large screen print design is found on the front panel that consists of the words “SMILE 82” and the image of a smiling face. The garment also features a v-shaped front neckline, a slightly curved hemmed front panel bottom, and a straight hemmed rear panel bottom. The garment extends to below the waist. Because the garment is constructed of jersey fabric and raschel lace-like fabric components we apply GRI 3 (b), which states that garments will be classified by the component which gives them their essential character. The openwork knit raschel lace-like component of the article at issue imparts the essential character to the pullover based on the nature of the material. By providing a visual and significant decorative effect, the openwork knit lace-like fabric defines this garment. Accordingly, classification of this garment is based on its openwork knitted lace-like component and classification is proper under 6110.30.3059, HTSUS. Therefore, your suggested classification as a cotton pullover under 6110.20.2079, HTSUS, is not applicable. The applicable subheading for Style JT9748 will be 6110.30.3059, 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: Women’s or girls’: Other. The duty rate will be 32% ad valorem. The manufacturing operations for Style JT9748 are as follows: The non-originating cotton and polyester fibers are spun into yarns in the U.S. The U.S. cotton and polyester yarns are knit into fabric in the U.S. The nylon and spandex fabric is manufactured in China. All of the fabrics are cut in the U.S. and then shipped to Mexico. In Mexico, the garment is sewn and assembled. A screen print is also applied. The garment will be exported 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. Chapter 61, 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. The component that determines the classification of the good is the raschel lace-like fabric. The applicable tariff heading for this fabric is 6004. For goods classified in heading 6110, General Note 12/61.35 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, 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 NAFTA parties. Based on the facts provided, Style JT9748, does not qualify for NAFTA preferential treatment, because it does not meet the requirements HTSUS General Note 12(b)(ii)(A). The merchandise will not 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 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 classification, contact National Import Specialist Francine Vivona-Brock 646-733-3049. If you have any questions regarding the eligibility under NAFTA, contact National Import Specialist Rosemarie Hayward at 646-733-3064. Sincerely, Robert B. Swierupski Director National Commodity Specialist Division