The tariff classification and eligibility of a woman’s pullover from the Dominican Republic

N276053 June 24, 2016 CLA-2-61:OT:RR:NC:N3:359 CATEGORY: Classification TARIFF NO.: 6110.20.2079 Edmundo Torner, C.H.B. 9300 NW 25th Street #211 Miami, FL 33172 RE: The tariff classification and eligibility of a woman’s pullover from the Dominican Republic Dear Mr. Torner: In your letter dated May 18, 2016, on behalf of your client Vertical Textiles LLC, you requested the tariff classification and eligibility of a woman’s pullover under CAFTA-DR. Your samples will be returned. Style 05054 BT is a woman’s size medium, grey sleeveless tank style pullover constructed from 52% cotton and 48% polyester knit fabric. The garment’s outer surface fabric measures more than nine stitches per two centimeters in the direction the stitches are formed. The sleeveless pullover features three panels: one in the front and two in the back, a U-shaped front neckline, a scooped back neckline, self fabric capping around the necklines and armholes, and a hemmed shirt-tail bottom. The applicable subheading for style 05054 BT will be 6110.20.2079 which provides for Sweaters, pullovers, sweatshirts, waistcoats (vests) and similar garments, knitted or crocheted: Of cotton: Other: Other: Women’s or girls’: Other. The rate of duty will be 16.5 percent ad valorem. You have described the manufacturing process for the pullover as follows: The yarn of heading 5206 is of a staple fiber composed of a blend consisting of 52% cotton and 48% polyester. The fibers are converted into yarn in Indonesia. The fabric is then manufactured in the USA, from yarn that was transformed into fabric by knitting, dyeing and finishing in a US Mill which you have not identified. The sewing thread was formed in the USA and finished in the Dominican Republic. The garments are assembled in the Dominican Republic and will be exported from the Dominican Republic.General Note 29, HTSUS, sets forth the criteria for determining whether a good is originating under the CAFTA-DR. 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— the good is a good wholly obtained or produced entirely in the territory of one or more of the parties to the Agreement; the good was produced entirely in the territory of one or more of the parties to the Agreement, and— each of the non-originating materials used in the production of the good undergoes an applicable change in tariff classification specified in subdivision (n) of this note; or 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 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 of this garment is the 52% cotton 48% polyester knit fabric. For goods classified in heading 6110, General Note 29/61.25 requires: A change to any other good of heading 6105 through 6111 from any other chapter, except from headings 5111 through 5113, 5204 through 5212, 5310 through 5311, chapter 54, headings 5508 through 5516 or 6001 through 6006, provided that the good is cut or knit to shape or both, and sewn or otherwise assembled in the territory of one or more of the parties. Since the fibers are spun and extruded into yarns in Indonesia, the pullover does not satisfy the CAFTA-DR tariff shift rule above, which requires both the yarn and fabric to be formed and finished in one or more CAFTA-DR countries. Indonesia is not a party to the CAFTA-DR. The good must also meet the requirements of any applicable chapter rules to GN 29 (n) for Chapter 61. General Note 29 (n), Chapter 61, Chapter rule 4 states in part: Notwithstanding chapter rule 2 to this chapter, a good of this chapter containing sewing thread of headings 5204, 5401, or 5508 or yarn of heading 5402 used as sewing thread 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 the garment, will be formed and finished in one or more of the parties to the Agreement. In this case you state the thread will be finished in the Dominican Republic.Based on the facts provided, style 05054 BT does not qualify for CAFTA-DR preferential treatment, because it does not meet the requirements of HTSUS General Note 29 (b) (ii) (A). The merchandise will not be entitled to a free rate of duty under the CAFTA-DR as it is not in compliance of all applicable laws, regulations and agreements. 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 https://hts.usitc.gov/current. 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 Renée Orsat at renee.orsat@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division