The tariff classification and status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA) of blankets from El Salvador

N300406 October 1, 2018 CLA-2-63:OT:RR:NC:N3:349 CATEGORY: Classification TARIFF NO.: 6301.40.0020 Mr. Davis Barlow Kelly Global Logistics, Inc. 9901 N.W. 106th Street, Suite 18 Medley, FL 33178 RE: The tariff classification and status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA) of blankets from El Salvador Dear Mr. Barlow: In your letter dated September 4, 2018, you requested on behalf of your client, Supertex America, Inc., a ruling on the tariff classification and status under the DR-CAFTA of blankets from El Salvador. A sample was provided with your letter. The sample will be returned to you, as requested. The submitted sample is a blanket referred to as Proto 8584, Style 22105. The blanket is made from two fabrics; one side (face A) is a 100 percent polyester knitted fleece fabric and the other side (face B) is a 100 percent nylon woven fabric. The blanket measures approximately 57 X 65 inches and has rounded “wing grab” (pocket) corners. The edges of the two fabrics are sewn together with an overlock stitch and a narrow woven binding fabric is sewn over the overlock stitching to finish the edges. A 3 centimeter loop of the binding fabric is sewn under the finished edge at the center of each side and at each corner. No information was provided on the function and use of the eight loops. A 1 ½ X 5 centimeter woven label with the “patagonia” logo is sewn to the woven face fabric in one corner. In your letter, you state the blanket is intended to be used to provide warmth. The Explanatory Notes to heading 6301, Harmonized Tariff Schedule of the United States (HTSUS), state the following, in pertinent part: "Blankets and traveling rugs are usually made of wool, animal hair, cotton or man-made fibers, frequently with a raised pile surface, and generally of thick heavy-texture material for protection against the cold." With respect to the instant sample, it is the knitted fleece fabric that captures and holds the heat of the body. Therefore, this office finds that it is the 100 percent polyester knitted fleece fabric that provides the essential character of the blanket. The applicable subheading for the blanket will be 6301.40.0020, HTSUS, which provides for “Blankets (other than electric blankets) and traveling rugs of synthetic fibers: Other.” The rate of duty will be 8.5 percent ad valorem. DR-CAFTA ELIGIBILITY: With respect to the eligibility of the blanket under DR-CAFTA, you have described the manufacturing process as follows: Honduras: Sewing thread (heading 5401) is formed and finished and shipped to El Salvador. Taiwan: - 100 percent nylon fabric (face B) is woven and shipped to El Salvador. United States: - Binding fabric is woven and shipped to El Salvador. - Yarn A (heading 5509) for knit fabric (face A) is spun and shipped to El Salvador. El Salvador: - Yarn B (heading 5402) for knit fabric (face A) is extruded. - 100 percent polyester fleece fabric (face A) is knit from yarns A and B produced in the United States and El Salvador. - Fabrics are cut to size. - Components are assembled using thread produced in Honduras. 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 article contains non-originating nylon woven fabric, the blanket would have to meet the requirements of GN 29(b)(ii)(A). General Note 29(n) 63.1 requires: A change to headings 6301 through 6302 from any other chapter, except from headings 5111 through 5113, 5204 through 5212, 5310 through 5311, chapter 54, headings 5508 through 5516, 5801 through 5802 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 to the Agreement. In addition to satisfying the product-specific rule noted above, the DR-CAFTA chapter rules 1 (tariff classification component), 2 (sewing thread) and 3 (short supply sewing thread or yarn) of General Note (n), Chapter 63, must also be met. The applicable chapter rules state: Chapter rule 1: 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. Chapter rule 2: Notwithstanding chapter rule 1 to this chapter, a good of this chapter containing sewing thread of headings 5204, 5401, or 5508 or yarn of 5402 used as sewing thread, shall be considered originating only if such sewing thread or yarn is wholly formed in the territory of one or more of the parties to the Agreement. Chapter rule 3: Notwithstanding chapter rule 2 to this chapter, a good of this chapter shall be considered originating regardless of the origin of the sewing thread or yarn of heading 5402 used as sewing thread described in chapter rule 2 to this chapter, provided the thread or yarn is listed in U.S. note 20 to subchapter XXII of chapter 98 and the good meets all other applicable requirements for preferential tariff treatment under this note. The component that determines the classification of the blanket is the face A 100 percent polyester fleece fabric (heading 6001) knit in El Salvador, a party to the DR-CAFTA Agreement, from yarns produced in El Salvador and the United States. The sewing thread is wholly formed in Honduras, also a party to the DR-CAFTA Agreement. Based on the facts provided, the goods described above qualify for DR-CAFTA preferential treatment, because they will meet the requirements of HTSUS General Note 29(b)(ii)(A). The goods will, therefore, be entitled to a Free rate of duty under the DR-CAFTA upon compliance with 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 Kim Wachtel at kimberly.a.wachtel@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division