The tariff classification of footwear produced in the Dominican Republic and the eligibility for preferential treatment under the Dominican Republic – Central America Free Trade Agreement (DR-CAFTA).

N194916 December 23, 2011 CLA-2-64:OT:RR:NC:N4:447 CATEGORY: Classification TARIFF NO.: 6403.99.9065 Sandra Tovar CST, Inc.500 Lanier Avenue, W., Suite 901 Fayetteville, GA 30214 RE: The tariff classification of footwear produced in the Dominican Republic and the eligibility for preferential treatment under the Dominican Republic – Central America Free Trade Agreement (DR-CAFTA).  Dear Ms. Tovar:In your letter dated October 15, 2011 you requested a tariff classification ruling on behalf of Colina Business Group, SRL (“Colina”) for a ladies’ thong sandal assembled in the Dominican Republic from non-originating materials. Your request concerns the eligibility for preferential duty treatment for the footwear under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA).  You describe the sandal as follows: Style “Emmy 101402” is identified by you as a ladies’ flat thong sandal with a rubber outer sole and a leather strap upper and midsole. You state that both the leather upper and midsole and the rubber outer sole are produced in countries other than the Dominican Republic (or other CAFTA countries) and assembled in the Dominican Republic. You suggest that at the time of importation into the Dominican Republic, these footwear parts would be classified under subheadings 6406.10 and 6406.20, Harmonized Tariff Schedule of the United States (HTSUS), which provides for in pertinent part; “uppers and parts thereof” and “outer soles and heel, of rubber or plastics,” respectively. Once assembled, the sandal would have an F.O.B. value over $2.50/pair.  The applicable subheading for the ladies’ flat thong sandal identified as style “Emmy 101402” will be 6403.99.9065, Harmonized Tariff Schedule of the United States (HTSUS), which provides for footwear with outer soles of rubber, plastics, leather or composition leather and uppers of leather: other footwear: not covering the ankle; other: other: other: for other persons: valued over $2.50/pair: other: other: for women: other. The general rate of duty will be 10% ad valorem. General Note 29, HTSUS, sets forth the criteria for determining whether a good is originating under the DR-CAFTA. General Note 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 non-originating materials used in the production of the good undergoes an applicable change in tariff classification specified in subdivision (n) of this note; … Based on the facts provided, the goods described above qualify for DR-CAFTA preferential treatment because they will meet the requirements of HTSUS General Note 29(b)(ii)(A) and 29(n)/64.2. The goods will therefore be entitled to a free rate of duty under the DR-CAFTA 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 ruling, contact National Import Specialist, Stacey Kalkines at 646-733-3042.Sincerely, Robert B. Swierupski Director National Commodity Specialist Division