The tariff classification and eligibility under subheading 9802.00.50, HTSUS, for women’s knit garments

N308852 January 29, 2020 CLA-2-61:OT:RR:NC:N3:361 CATEGORY: Classification TARIFF NO.: 9802.00.50 Ms. Carolina Franco-Garcia Zisser Group 9355 Airway Road San Diego, CA 92154 RE: The tariff classification and eligibility under subheading 9802.00.50, HTSUS, for women’s knit garments Dear Ms. Franco-Garcia: In your letter dated November 8, 2019, you requested a tariff classification ruling on behalf of your client, Tee Shirt Central Inc., concerning the eligibility under subheading 9802.00.50, Harmonized Tariff Schedule of the United States (HTSUS), for certain women’s knit garments imported into the United States. Your sample will be returned to you, as requested. The submitted sample is a women’s T-shirt constructed from 100 percent cotton knit fabric. The garment features a crew styled, ribbed knit neckline, short hemmed sleeves, and a straight hemmed bottom. You state the garments will be produced in various countries such as Honduras, Dominican Republic and Haiti. The finished garments will be imported into the United States and then exported to Mexico for screen-printing operations. After the operations are performed in Mexico, the garments will be returned to the United States for sale and distribution. Subheading 9802.00.50, HTSUS, provides a partial or complete duty exemption for articles exported from and returned to the United States after having been advanced in value or improved in condition by repairs or alterations, provided that the documentary requirements of Section 181.64, Customs Regulations (19 C.F.R. § 181.64), are satisfied. 19 C.F.R. § 181.64 (a) states that “repairs or alterations” means restoration, addition, renovation, redyeing, cleaning, resterilizing, or other treatment which does not destroy the essential characteristics of, or create a new and commercially different good from, the good exported from the United States. However, entitlement to this tariff treatment is precluded in circumstances where the operations performed abroad destroy the identity of the exported articles or create new or commercially different articles through a process of manufacture. Subheading 9802.00.50, HTSUS, treatment is also precluded where the exported articles are incomplete for their intended use and the foreign processing operation is a necessary step in the preparation or manufacture of finished articles. Furthermore, the merchandise must be in compliance with the pertinent legal notes of the HTSUS. For example, Section XXII, Chapter 98, Subchapter II, U.S. Note 1(b) states that heading 9802 HTSUS shall not apply to any article exported with benefit of drawback (other than NAFTA drawback). In this instance, the garments are complete for their intended use prior to being exported to Mexico to undergo the stated operations. As exported from the United States, the garments are finished products in that they are suitable for use as wearing apparel. Although the operations performed in Mexico alter the appearance of the garments, such operations do not otherwise enhance the character of the garments. They are shipped to Mexico solely for printing before being returned to the United States. The merchandise in its condition as exported from the United States and as returned from Mexico can be marketed and sold to consumers for the same use. The operations performed in Mexico do not result in the loss of the good’s identity nor create a new article with a different commercial use. Therefore, the operations performed in Mexico constitute acceptable repairs and alterations within the meaning of subheading 9802.00.50, HTSUS. The garments will qualify for the special tariff treatment of that provision, provided that the documentary requirements of 19 C.F.R. § 181.64 are met. 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 Antoinette Peek-Williams at antoinette.peek-williams@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division