The tariff classification and status under the North American Free Trade Agreement (NAFTA), of a glove from Mexico

N280044 November 8, 2016 CLA-2-61:OT:RR:NC:3:354 CATEGORY: Classification TARIFF NO.: 6116.10.5520 Ms. Sandra Tovar CST, Inc. 500 Lanier Ave., W. Suite 901 Fayetteville, GA 30214 RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of a glove from Mexico Dear Ms. Tovar: In your letter dated September 26, 2016 you requested a ruling, on behalf of your client Wells Lamont industry LLC, on the status of a glove from Mexico under the NAFTA. Style Y9297W is a work glove composed of 88% nylon, 6% polyester and 6% “X” yarn which you state is composed of ethyl vinyl acetate, polyester and Lycra. The palm side of the glove is dipped in a polyurethane coating which extends up the sides of the fingers and the sides of the glove. You state that the polyurethane makes up 35% of the total weight of the glove. The manufacturing process is as follows: 100% nylon textured yarn, 100% polyester yarn with a spandex core and “X” yarn, composed of 50.4% polyester, 35.6% ethyl vinyl acetate, 14% Lycra, are formed in the United States. In Mexico, the gloves are knit to shape and then dipped in a polyurethane which originates in Korea. The glove is then imported directly into the United States from Mexico. The applicable tariff provision for the glove will be 6116.10.5520, Harmonized Tariff Schedule of the United States (HTSUS), which provides for gloves, mittens or mitts, knitted or crocheted: impregnated, coated or covered with plastics or rubber, other, without fourchettes, other, containing 50 percent or more by weight of cotton, man-made fibers or other textile fibers, or any combination thereof, subject to man-made fiber restraints. The general rate of duty will be 13.2% 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 https://hts.usitc.gov/current. NAFTA ELIGIBILITY – LAW AND ANALYSIS: 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. For goods classified in heading 6116, General Note 12 (b) (ii) (B) 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, or heading 5508 through 5516 or 6001 through 6006, provided that the good is both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or more of the NAFTA parties. Based on the facts provided, the goods described above, qualify for NAFTA preferential treatment. The non-originating polyurethane, classified in chapter 39, will meet the requirements of HTSUS General Note 12(b)(ii)(B) 61.39. The goods 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 requirements6101 – 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 gloves are classifiable in heading 6116, HTSUS. This change to heading 6116 occurs in Mexico. As the gloves are knit-to-shape in a single country, as per the tariff shift requirement, country of origin is conferred in Mexico. HOLDING: The country of origin of the glove is Mexico. The holding set forth above applies only to the specific factual situation and merchandise identified in the ruling request. This position is clearly set forth in section 19 CFR 177.9(b)(1). This section states that a ruling letter, either directly, by reference, or by implication, is accurate and complete in every material respect. This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177). Should it be subsequently determined that the information furnished is not complete and does not comply with 19 CFR 177.9(b)(1), the ruling will be subject to modification or revocation. In the event there is a change in the facts previously furnished, this may affect the determination of country of origin. Accordingly, if there is any change in the facts submitted to Customs, it is recommended that a new ruling request be submitted in accordance with 19 CFR 177. This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 C.F.R. 181). The samples will be returned to you under separate cover. 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 K. Lenore Calabrese at k.lenore.calabrese@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division