The tariff classification and status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA), of woven shirts from the Dominican Republic.

N156143 April 1, 2011 CLA-2-62:OT:RR:NC:N3:348 CATEGORY: Classification TARIFF NO.: 6206.40.3030; 6205.30.2070 Bruce Schiller Schiller Trade Systems Inc. P.O. Box 2821 West Palm Beach, FL 33402 RE: The tariff classification and status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA), of woven shirts from the Dominican Republic. Dear Mr. Schiller: In your letter dated March 23, 2011, you requested a ruling on the status of woven shirts under the DR-CAFTA. The samples are being returned to you. Style ST18BO is a woman’s blouse, submitted in a size medium.  The short sleeve blouse is constructed from 65% polyester and 35% cotton solid color woven fabric.  It features a buttoned spread collar, a right over left full front opening with six button closures, two patch pockets with button closures on the chest, hemmed sleeves, and a hemmed bottom.   Style ST28BO is a men’s shirt, submitted in a size medium. The garment is constructed from 65% polyester, 35% cotton, solid color woven fabric and has a buttoned spread collar; a left over right, full front opening with seven button closures; two patch pockets on the chest with button closures; short, hemmed sleeves; and a curved, hemmed bottom. The applicable subheading for style ST18BO will be 6206.40.3030, Harmonized Tariff Schedule of the United States (HTSUS), which provides for women’s or girls’ blouses, shirts and shirt blouses: of man-made fibers: other: other: other: women’s. The duty rate will be 26.9 percent ad valorem. The applicable subheading for Style ST28BO will be 6205.30.2070, Harmonized Tariff Schedule of the United States, (HTSUS), which provides for: men’s or boys’ shirts: of man-made fibers: other: other: other: other: men’s. The duty rate is 29.1¢/kg+25.9% 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/. You have described the manufacturing and assembly of the garments as follows: The woven fabric for the collar, sleeves and front and back panels are composed of 65% polyester /35% cotton. The polyester/cotton yarns and fabric are produced in the U.S. The woven fabric for the side seam panels, rear yoke, and the front shoulder overlays are constructed from 65% polyester, 35% cotton. The polyester/cotton yarns and fabric are produced in Pakistan or a non-DR-CAFTA country. All fabric will be shipped to the Dominican Republic. In the Dominican Republic, the fabric will be cut-to-pattern and assembled. The sewing thread used to assemble the garments will be produced in the U.S. The garments will be shipped directly from the Dominican Republic to the U.S. General Note (GN) 29, HTSUS, sets forth the criteria for determining whether a good is originating under the DR-CAFTA. GN 29(b), HTSUS, (19 U.S.C. § 1202) states, in pertinent part, that For the purposes of this note, subject to the provisions of subdivisions (c), (d), (m) and (n) thereof, a good imported into the customs territory of the United States is eligible for treatment as an originating good under the terms of this note if— (i)the good is a good wholly obtained or produced entirely in the territory of one or more of the parties to the Agreement; (ii) the good was produced entirely in the territory of one or more of the parties to the Agreement, and— (A) each of the nonoriginating materials used in the production of the good undergoes an applicable change in tariff classification specified in subdivision (n) of this note; or (B) the good otherwise satisfies any applicable regional value content or other requirements specified in subdivision (n) of this note; and the good satisfies all other applicable requirements of this note; or (iii) the good was produced entirely in the territory of one or more of the parties to the Agreement exclusively from originating materials. As the goods contain nonoriginating materials, they would have to undergo an applicable change in tariff classification in order to meet the requirements of GN 29(b)(ii)(A). General Note 29 (n), Chapter 62, Chapter rule 2 states: 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 that rule for that good. The component that determines the classification for both garments is the woven polyester/cotton fabric. For goods classified in heading 6206, General Note 29/62.31 requires: A change to heading 6206 from any other chapter, except from headings 5111 through 5113, 5204 and 5212, 5310 through 5311, chapter 54, headings 5508 through 5516, 5801 through 5802 or 6001 through 6006, provided that the good is cut or knit to shape or both, and sewn or otherwise assembled in the territory of one or more of the parties. For goods classified in subheading 6205.30, General Note 29/62.30D requires: A change to any other good of subheadings 6205.30 from any other chapter, except from headings 5111 through 5113, 5204 through 5212, 5310 through 5311, chapter 54, headings 5508 through 5516, 5801 through 5802 or 6001 through 6006, provided that the good is cut or knit to shape or both, and sewn or otherwise assembled in the territory of one or more of the parties to the Agreement. General Note 29 (n), Chapter 62, Chapter rule 4 states: Notwithstanding chapter rule 2 to this chapter, a good of this chapter containing sewing thread of headings 5204, 5401 and 5508 shall be considered originating only if such sewing thread is both formed from yarns and finished in the territory of one or more of the parties to the Agreement. The sewing thread used to assemble the garment will be formed and finished in one of the parties to the Agreement. Since the polyester/cotton woven fabric is classified in either Chapter 54 or 55, the garments do not meet the terms of the tariff shift rule. Based on the facts provided, Styles ST18BO and ST28BO do not qualify for DR-CAFTA preferential treatment, because they do not meet the requirements of HTSUS General Note 29(b)(ii)(A). The merchandise will not be entitled to a free rate of duty under the DR-CAFTA upon compliance with all applicable laws, regulations, and agreements. This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177). If you have any questions regarding subheading 6206.40.3030, HTSUS, please contact National Import Specialist Kimberly Rackett at (646) 733-3051. If you have any questions regarding subheading 6205.30.2070, contact National Import Specialist Mary Ryan at (646) 733-3271. If you have any questions regarding eligibility for preferential treatment under DR-CAFTA, contact National Import Specialist Rosemarie Hayward at (646) 733-3064. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division