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

N241113 May 17, 2013 CLA-2-61:OT:RR:NC:N3:361 CATEGORY: Classification CLASSIFICATION: 6109.10.0060 Ms. Hee Jung Park INT Trading Calzada Roosevelt 22-43, Zone 11 Guatemala RE: The tariff classification and status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA), of ladies’ tank tops from Guatemala. Dear Ms. Park: In your letter dated April 23, 2013, you requested a ruling on the status of ladies’ tank tops from Guatemala under the DR-CAFTA. The item (no style number available at this time) is a woman’s tank top. The garment is constructed from two fabrics. The upper back and shoulder straps are constructed of 90 percent nylon and 10 percent spandex lace like knit fabric. The front panel, lower back panel and capping are constructed of 98 percent cotton and 2 percent spandex rib knit fabric. The garment features a scooped front neckline, a racer style back neckline, 1 ¼ inch wide shoulder straps, self-fabric capping around the neckline and armholes and a hemmed bottom. The garment extends from the shoulders to below the waist but not to mid-thigh. Because the garment is constructed of two different fabrics we apply GRI 3(b), which states that garments will be classified by the component which gives them their essential character. The cotton/spandex component of the garment imparts the essential character to the garment. The applicable subheading will be 6109.10.0060, Harmonized Tariff Schedule of the United States (HTSUS), which provides for T-shirts, singlets, tank tops and similar garments, knitted or crocheted: Of cotton: Women’s: Tank tops: Women’s. The duty rate will be 16.5% 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: The cotton/spandex fabric: The yarn is produced in the United States or a DR-CAFTA country; the fabric is knitted in Guatemala. The nylon/spandex lace-like open work fabric is manufactured in China. The spandex yarn used in the lace like fabric is produced in Asia. The spandex in the rib knit fabric is formed and finished in the United States. The sewing thread is manufactured in Honduras. Both fabrics are cut, sewn and assembled in Guatemala. The garment is exported directly from Guatemala 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 cotton/spandex rib knit fabric. Since it is determined to be originating, it does not need to meet the terms of the tariff shift. GN 29(d)(i), HTSUS, also states in pertinent part, A textile or apparel good containing elastomeric yarns in the component of the good that determines the classification of the good shall be considered to be originating good only if such yarns are wholly formed in the territory of the party to the Agreement. The elastomeric yarn in the component that determines the classification is formed and finished in the United States. 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 tank tops qualify for DR-CAFTA preferential treatment, because they 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 Peggy Fitzgerald at 646-733-3052. 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