The tariff classification, country of origin determination and status under the North American Free Trade Agreement (NAFTA), of men’s trousers from Mexico; 19 C.F.R. 102.21 (c )(2); tariff shift; General Note 12(b)(ii)(A); Article 509

N243672 July 18, 2013 CLA-2-62:OT:RR:NC:N3:356 CATEGORY: Classification TARIFF NO.: 6203.43.4010 Mr. Randy Moffitt Calhoun Apparel, Inc. P.O. Box 1204 150 G C Hudson Drive Calhoun City, MS 38916 RE: The tariff classification, country of origin determination and status under the North American Free Trade Agreement (NAFTA), of men’s trousers from Mexico; 19 C.F.R. 102.21 (c )(2); tariff shift; General Note 12(b)(ii)(A); Article 509 Dear Mr. Moffitt: In your letter dated June 17, 2013, you requested a ruling on the tariff classification, country of origin and status of men’s trousers from Mexico under the NAFTA. The sample submitted will be returned. Style 2670-005 is a pair of men’s trousers constructed from 65% polyester, 35% cotton, solid color woven twill fabric. The pants have a flat waistband with seven belt loops, a zippered fly front opening with a single button closure on the waistband, slant pockets in the front, two rear welt pockets, a button closure on the left welt pocket, and hemmed leg openings. The applicable subheading for Style 2670-005 will be 6203.43.4010, Harmonized Tariff Schedule of the United States (HTSUS), which provides for men’s or boys’… trousers, . . . and shorts (other than swimwear): of synthetic fibers: other: other: other: other: trousers: men’s. The rate of duty is 27.9% 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 the World Wide Web at http://www.usitc.gov/tata/hts/. The manufacturing operations for Style 2670-005 are as follows: The warp and filling yarns are manufactured in the United States. The yarns are woven into fabric in the United States. The 70% polyester, 30% cotton pocket lining fabric is manufactured in Pakistan. The polyester fusible interfacing is manufactured in the United States. The belt loop tape, left fly tape, waistband fusible, zipper chain brass, and the zipper slide brass are manufactured in the United States. The bottom stop brass is manufactured in Japan. The buttons are manufactured in China. The waistband ticket, size/wash care label and sewing thread are manufactured in the United States. The components are shipped to Mexico where the fabric is cut into component parts. The parts are sewn and assembled into finished trousers in Mexico. The trousers will be exported from Mexico directly to the United States. 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. As the good contains non-originating materials, the goods would have to undergo an applicable change in tariff classification in order to meet the requirements of GN 12(b)(ii)(A).  General Note 12 (t), Chapter 62, Chapter rule 3 states in pertinent part: For purposes of determining the origin of a good of this chapter, 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 of the trousers is the 65% polyester, 35% cotton woven twill fabric. Since the fabric is determined to be originating, it does not need to meet the terms of the tariff shift. Based on the facts provided, Style 2670-005 qualifies for NAFTA preferential treatment because it meets the requirements of HTSUS General Note 12(b)(ii)(A). The merchandise will therefore be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements. 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 6201-6208 (1) If the good consists of two or more component parts, a change to an assembled good of heading 6201 through 6208 from unassembled components, provided that the change is the result of the good being wholly assembled in a single country, territory, or insular possession. The garments are made of two or more component parts and are cut, sewn and assembled in Mexico. As Style 2670-005 meets the terms of the tariff shift requirement of 19 C.F.R. 102,21, country of origin is conferred in Mexico. 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 the classification of this merchandise, contact National Import Specialist Mary Ryan at (646) 733-3271. If you have any questions regarding eligibility for preferential treatment under NAFTA, contact National Import Specialist Rosemarie Hayward at (646) 733-3064. Sincerely, Thomas J. Russo Director National Commodity Specialist Division