The tariff classification and status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA), of women’s tops from Guatemala

N223935 July 24, 2012 CLA-2-61:OT:RR:NC: N3:361 CATEGORY: Classification TARIFF NO.: 6114.30.1020, 9822.05.10 Ms. Emilia Arroyo Jerry Leigh 7860 Nelson Road Van Nuys, CA 91402 RE: The tariff classification and status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA), of women’s tops from Guatemala Dear Ms. Arroyo: In your letter dated June 27, 2012, you requested a ruling on the status of women’s tops under the DR-CAFTA and applicability of subheading 9822.05.10. The sample is being returned. The submitted sample, style JT11424, is a woman’s top constructed from 50 percent polyester, 38 percent cotton and 12 percent rayon knit jersey fabric. The top features a U-shaped neckline; a screen print design; metal rhinestones; exaggerated, revealing armholes; and a flared, hemmed bottom. In your letter you suggest classification under 6109.90.1065 as a tank top. However, the exaggerated, revealing armholes and the flared bottom preclude classification under 6109 as a tank top. The exaggerated, revealing armholes preclude classification under 6110. The applicable subheading will be 6114.30.1020, Harmonized Tariff Schedule of the United States (HTSUS), which provides for other garments, knitted: of man made fibers: tops: women’s. The duty rate will be 28.2% 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 describe the manufacturing and assembly operations as follows: 1. Yarns made in China 2. Fabric knitted in the United States 3. Sewing thread made in the United States 4. Fabric cut and assembled in Guatemala 5. Screen printing applies in Guatemala 6. Metal rhinestones made in China 7. Metal rhinestones applied to garment in Guatemala 8. Packing done in Guatemala The merchandise will be shipped directly from Guatemala to the United States. 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 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. The merchandise does not qualify for preferential treatment under DR-CAFTA because (a) it will not be wholly obtained or produced entirely in the territory of one or more DR-CAFTA countries; (b) one or more of the non-originating materials used in the production of the goods will not undergo the change in tariff classification required by General Note 29(n)/61.38, HTSUS; and (c) it will not be produced entirely in the territory of one or more of the DR-CAFTA parties exclusively from originating materials. The tops however may be subject to a reduced rate of duty based upon the provisions of subheading 9822.05.10, subchapter XXII of the HTSUS. U.S. Note 22 to that chapter states: For a textile or apparel good provided for in chapters 61 through 63 of the tariff schedule that is not an originating good under general note 29 and for which the duty treatment set forth in heading 9822.05.10 is claimed, the rate of duty set forth in the general subcolumn of rate of duty column 1 shall apply only on the value of the assembled good minus the value of fabrics formed in the United States, components knit-to-shape in the United States and any other materials of U.S. origin used in the production of such a good, provided that the good is sewn or otherwise assembled in the territory of a party to the Agreement (other than the United States) specified in general note 29(a) with thread wholly formed in the United States, from fabrics wholly formed in the United States and cut in one or more parties to the Agreement (other than the United States) as defined in general note 29(a) or from components knit-to-shape in the United States, or both. For purposes of this note- (a) a fabric is wholly formed in the United States if all the production processes and finishing operations, starting with the weaving, knitting, needling, tufting, felting, entangling or other process, and ending with a fabric ready for cutting or assembly without further processing, took place in the United States; and (b) a thread is wholly formed in the United States if all the production processes, starting with the extrusion of filaments, strips, film or sheet, and including slitting a film or sheet into strip, or the spinning of all fibers into thread, or both, and ending with thread, took place in the United States. The woman’s top is cut and assembled, as well as sewn in a DR-CAFTA country, using fabric that is formed in the U.S., using thread that is formed in the U.S. In this regard, the top would be eligible under 9822.05.10, HTSUS. 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 Peggy Fitzgerald at 646-733-3052. If you have any questions regarding 9822.05.10 status contact National Import Specialist Rosemarie Hayward at 646-733-3064. Sincerely, Thomas J. Russo Director National Commodity Specialist Division