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

N238946 February 27, 2013 CLA-2-61:OT:RR:NC:N3:348 CATEGORY: Classification TARIFF NO.: 6115.96.9020 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 socks from Mexico; Article 509. Dear Mr. Escobedo: In your letter dated February 25, 2013, on behalf of your client, Seamless Global Solutions, you requested a tariff classification ruling. The samples are being returned to you as requested. Styles HM6383 and HM6384 are socks composed of 92% polyamide and 8% elstane. HM6383 are ankle length socks with a hemmed top. HM6384 are knee length socks with unfinished bottom. The applicable subheading Styles HM6383 and HM6384 will be will be 6115.96.9020, Harmonized Tariff Schedule of the United States (HTSUS), which provides for other "Panty hose, tights, stockings, socks and other hosiery, other: of synthetic fibers: other, other." The duty rate will be 14.6 percent 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/. The manufacturing operations are as follows: In Mexico, the polyamide yarns from Brazil and the elastane yarns from US or MX are knitted into socks. The socks are sewn at the toe in Mexico. The socks are directly shipped to the U.S. 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at 19 U.S.C. 3592), enacted on December 8, 1994, provided rules of origin for textiles and apparel entered, or withdrawn from warehouse for consumption, on and after July 1, 1996.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                If the good is not knit to shape and consists of two or more component parts, except for goods of subheading 6117.10 provided for in paragraph (e) (2) of this section, a change to an assembled good of heading 6101 thru 6117 from unassembled components provided that the change is the result of the good being wholly assembled in a single country, territory, or insular possession. If the good does not consist of two or more component parts, a change to heading 6210 through 6212 from any heading outside that group, except from heading 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408, 5512 through 5516, 5602 through 5603, 5801 through 5806, 5809 through 5811, 5903, 5906 through 5907, 6001 through 6006, and 6217, and subheading 6307.90, and provided that the change is the result of a fabric-making process. 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 thru 6117 from any heading outside that group, provided that the knit to shape components are knit in a single country, territory, or insular possession. As the subject merchandise is knit to shape in Mexico, Section 102.21(c)(3) applies.HOLDING:The country of origin of the socks is 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 non-originating 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. Chapter 62, Chapter rule 3 states in pertinent part: 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 the rule for that good. The component that determines the classification is the knit-to-shape sock. The non-originating material is the Brazilian yarn classified in Chapter 54. For goods classified in heading 6115, General Note 12/61.39 requires: A change to headings 6113 through 6117 from any other chapter, except from headings 5106 through 5113, 5204 through 5212, 5307 through 5308 or 5310 through 5311, chapter 54, headings 5508 through 5516 or 6001 through 6006, provided that the good is both cut or sewn (or knit to shape) or otherwise assembled in the territory of one or more of the NAFTA parties. Based on the facts provided, Styles HM6383 and HM6384, do not qualify for NAFTA preferential treatment, because they do not meet the requirements of HTSUS General Note 12(b)(ii)(A). The merchandise will therefore not be entitled to a free rate of duty under the NAFTA 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). 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 Rosemarie Hayward at (646) 733-3064. Sincerely, Thomas J. Russo Director National Commodity Specialist Division