The tariff classification and status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA), of ladies’ pullover from El Salvador.

N237520 February 1, 2013 CLA-2-61:OT:RR:NC:N3:348 CATEGORY: Classification TARIFF NO.: 6110.30.3059 Tony Tsuei SanMar 22833 SE Black Nugget Road Suite 130 Issaquah, WA 98029 RE: The tariff classification and status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA), of ladies’ pullover from El Salvador. Dear Mr. Tsuei: In your letter dated January 15, 2013, you requested a ruling on the status of ladies’ pullovers from Guatemala under the DR-CAFTA. Style DM441 is a woman’s “District Made” label cut and sewn pullover that is constructed of 50% polyester, 37.5% cotton and 12.5% rayon jersey knit fabric. The outer surface of the fabric measures more than nine stitches per two centimeters in the direction that the stitches were formed. The garment features a round front neckline with capping, a high rear neckline, lace-like openwork construction on the upper rear panel extending to the shoulder area, short hemmed sleeves, and a straight hemmed garment bottom. The garment extends from the shoulders to below the waist. The applicable subheading for style DM441 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: Other: Women’s or girls’. The duty rate will be 32%. The manufacturing operations are as follows: The polyester/cotton/rayon fabric, for the body of the garment, is manufactured in El Salvador from yarns produced in the U.S. The cotton/polyester lace-like open work construction is manufactured in China. The sewing thread is manufactured in El Salvador. The fabric is cut, sewn and assembled in El Salvador. The garment is exported directly from El Salvador to the U.S. 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. As the good contains non-originating materials, it 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 61, 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 is the polyester/cotton/rayon fabric. Since it is determined to be originating, it does not need to meet the terms of the tariff shift. General Note 29 (n), Chapter 61, 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 both garments will be formed and finished in one or more of the parties to the Agreement. Based on the facts provided, the garments does qualify for DR-CAFTA preferential treatment, because they do meet the requirements of HTSUS General Note 29(b)(ii)(A). The merchandise will be entitled to a free rate of duty under the DR-CAFTA. 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 359 at 646-733-3049. If you have any questions regarding DR-CAFTA eligibility contact National Import Specialist Rosemarie Hayward at 646-733-3064. Sincerely, Thomas J. Russo Director National Commodity Specialist Division