The tariff classification, country of origin determination and status under the North American Free Trade Agreement (NAFTA), of a garment from Mexico; Article 509

N238869 March 20, 2013 CLA-2-61:OT:RR:NC:N3:354 CATEGORY: Classification TARIFF NO.: 6109.90.1065 Mr. Luciano Escobedo Global Link Logistics 11901 Gavin Rd. Laredo, TX 78045 RE: The tariff classification, country of origin determination and status under the North American Free Trade Agreement (NAFTA), of a garment from Mexico; Article 509 Dear Mr. Escobedo: In your letter received February 25, 2013, you requested a ruling on the status of a garment from Mexico under the NAFTA. Style HM2341, “Women’s Invisible Tank” is a woman’s underwear camisole constructed of 92% polyamide and 8% elastane. The camisole features a v-neckline, capping at the neck and arm openings and light shaping at the waist area. The area at the bust is outlined by a change in knit pattern. The manufacturing operation of the garment is as follows: Style HM2341 is knit to shape in Mexico with polyamide yarns from Brazil and elastane yarns from the US or Mexico.     The applicable subheading for style HM2341 will be 6109.90.1065, Harmonized Tariff Schedule of the United States (HTSUS), which provides for T-shirts, singlets, tank tops and similar articles, knitted or crocheted: of other textile materials: of made-made fiber: women’s or girls’: tank tops and singlets: women’s. The duty rate will be 32 percent ad valorem. COUNTRY OF ORIGIN - LAW AND ANALYSIS:Section 334 of the Uruguay Round Agreements Act (codified at 19 U.S.C. 3592), enacted on December 8, 1994, provided rules of origin for textiles and apparel entered, or withdrawn from warehouse for consumption, on and after July 1, 1996. Section 102.21, Customs Regulations (19 C.F.R. 102.21), published September 5, 1995 in the Federal Register, implements Section 334 (60 FR 46188). Section 334 of the URAA was amended by section 405 of the Trade and Development Act of 2000, enacted on May 18, 2000, and accordingly, section 102.21 was amended (68 Fed. Reg. 8711). Thus, the country of origin of a textile or apparel product shall be determined by the sequential application of the general rules set forth in paragraphs (c)(1) through (5) of Section 102.21.Paragraph (c)(1) states, “The country of origin of a textile or apparel product is the single country, territory, or insular possession in which the good was wholly obtained or produced.” As the subject merchandise is not wholly obtained or produced in a single country, territory or insular possession, paragraph (c)(1) of Section 102.21 is inapplicable.Paragraph (c)(2) states, “Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1) of this section, the country of origin of the good is the single country, territory, or insular possession in which each of the foreign materials incorporated in that good underwent an applicable change in tariff classification, and/or met any other requirement, specified for the good in paragraph (e) of this section:” Paragraph (e) in pertinent part states, The following rules shall apply for purposes of determining the country of origin of a textile or apparel product under paragraph (c)(2) of this section:HTSUS          Tariff shift and/or other requirements 6101 – 6117          (3) If the good is knit to shape, except for goods of subheading 6117.10 provided for in paragraph (e)(2) of this section, a change to 6101 through 6117 from any heading outside that group, provided that the knit to shape components are knit in a single country, territory or insular possession.The subject knit-to-shape camisole is classifiable in heading 6109, HTSUS; synthetic yarn used to knit the gloves is classifiable in chapter 54, HTSUS. As the gloves are knit-to-shape in a single country, that is, Mexico, as per the terms of the tariff shift requirement, country of origin is conferred in Mexico. 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. The merchandise does not qualify for preferential treatment under the NAFTA because none of the above requirements are met. It is noted that the non-originating yarn used in the production of the goods will not undergo the change in tariff classification required by General Note 12(t)/61.35, HTSUS. This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 C.F.R. 181). 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 NAFTA, contact National Import Specialist Rosemarie Hayward at (646) 733-3064 and any questions regarding classification, contact National Import Specialist 354 at (646) 733-3054. Sincerely, Thomas J. Russo Director National Commodity Specialist Division