The tariff classification and eligibility under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA) Short Supply Provision for two polyester knit fabrics

N319785 October 7, 2021 CLA-2-60:OT:RR:NC:N3:352 CATEGORY: Classification TARIFF NO.: 6001.22.0000 David G. Blondino Blondino Enterprises, Inc. 511 Goodwood Drive Lutz, Florida 33549 RE: The tariff classification and eligibility under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA) Short Supply Provision for two polyester knit fabrics Dear Mr. Blondino: In your letter dated June 01, 2021, on behalf of Wuxi Jinmao Co. Ltd., you requested a ruling for tariff classification and eligibility under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA) Short Supply Provision for two fabrics to be used to manufacture sleepwear. Two fabric styles, identified as Navy/Burgundy/Cream Fleece “Velour Minky” and Red/Black Fleece “Velour Minky,” were submitted and sent for laboratory analysis. FACTS: The U.S. Customs and Border Protection Laboratory (CBP Laboratory) has determined that the fabric style Navy/Burgundy/Cream Fleece “Velour Minky” is composed wholly of polyester of weft knit sinker loop pile construction. The fabric is both printed and brushed; the fabric weighs 143.3 g/m2. Additionally, the CBP Laboratory was not able to determine if the fabric was of circular knit construction. The CBP Laboratory has determined that the fabric style Red/Black Fleece “Velour Minky” is composed wholly of polyester of weft knit sinker loop pile construction. The fabric is both printed and brushed; the fabric weighs 136.2 g/m2. Additionally, the CBP Laboratory was not able to determine if the fabric was of circular knit construction. You have requested consideration of the fabric under the Office of Textiles and Apparel’s (OTEXA) short supply number 16. You have described the manufacturing operations as follows: The 100 percent polyester fabrics (Navy/Burgundy/Cream Fleece “Velour Minky” and Red/Black Fleece “Velour Minky”) were produced in China. The fabrics will be imported into Guatemala or El Salvador to be cut and sewn into the finished product (sleepwear) and shipped to the United States. CLASSIFICATION: The applicable subheading for the two fabric styles, identified as Navy/Burgundy/Cream Fleece “Velour Minky” and Red/Black Fleece “Velour Minky,” will be 6001.22.0000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Pile fabrics, including “long pile” fabrics and terry fabrics, knitted or crocheted: Looped pile fabrics: Of man-made fibers. The rate of duty will be 17.2% 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 the World Wide Web at https://hts.usitc.gov/current. DR-CAFTA SHORT SUPPLY PROVISION ELIGIBILITY – LAW AND ANALYSIS: In your request, you ask whether the fabric may be afforded DR-CAFTA preferential duty treatment as the result of the fabric matching one of the fabrics listed on the DR-CAFTA short supply list. You have requested consideration of the fabric under the OTEXA’s short supply number 16. Information concerning the designated fabric can be found within both the HTSUS, Chapter 98, subchapter XXII, U.S. Note 20(a) and OTEXA’s short supply list for CAFTA-DR (Annex 3.25). General Note (GN) 29, HTSUS, sets forth the criteria of 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 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 (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. General Note (GN) 29, Subdivision (m), provides at paragraph (viii)(B):An apparel good of chapter 61 or 62 of the tariff schedule and imported under heading 9822.05.01 of the tariff schedule shall be considered originating if it 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, and if the fabric of the outer shell, exclusive of collars and cuffs where applicable, is wholly of— (1) one or more fabrics listed in U.S. Note 20 to subchapter XXII of chapter 98; . . . .U.S. Note 20(a), Subchapter XXII, Chapter 98, provides, in relevant part:Heading 9822.05.01 shall apply to textile or apparel goods of chapters 50 through 63 and subheading 9404.90 that contain any of the fabrics, yarns or fibers set forth herein, are described in general note 29 to the tariff schedule and otherwise meet the requirements of such general note 29: (16) 100 percent polyester crushed panne velour fabric of circular knit construction, not over 271 g/m2, classified in subheading 6001.92.00. Please note that only fabrics meeting the exact description and specifications set out above will be deemed to be commercially unavailable and eligible to be used to qualify products for DR-CAFTA preferential treatment pursuant to GN 29(m)(viii)(B). Based on the lab analysis, the fabric is constructed of weft knit sinker loop pile construction. Additionally, the lab was unable to determine if the fabric was of circular knit construction. Since the fabric does not conform to all the specifications of DR-CAFTA short supply number 16, the fabric would not be eligible for DR-CAFTA preferential duty treatment. Therefore, the goods will not be entitled to a free rate of duty under the DR-CAFTA upon compliance with all applicable laws, regulations, and agreements specified in GN 29. HOLDING: The applicable subheading for the two fabric styles, identified as Navy/Burgundy/Cream Fleece “Velour Minky” and Red/Black Fleece “Velour Minky,” will be 6001.22.0000, HTSUS, which provides for Pile fabrics, including “long pile” fabrics and terry fabrics, knitted or crocheted: Looped pile fabrics: Of man-made fibers. The rate of duty will be 17.2% ad valorem. As indicated above, the fabrics do not conform to all the specifications of DR-CAFTA short supply number 16. Accordingly, this merchandise does not qualify for preferential treatment under the DR-CAFTA because the requirements have not been met under GN (29(m)(viii)(B)(1). Therefore, the merchandise will not be entitled to a free rate of duty under the DR-CAFTA. 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 Nicole Rosso via email at nicole.rosso@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division