United States International Trade Commision Rulings And Harmonized Tariff Schedule
faqs.org  Rulings By Number  Rulings By Category  Tariff Numbers
faqs.org > Rulings and Tariffs Home > Rulings By Number > 1999 NY Rulings > NY D87688 - NY D87745 > NY D87724

Previous Ruling Next Ruling



March 5, 1999

CLA?2?62:RR:NC:WA:D87724

CATEGORY: CLASSIFICATION

TARIFF NO.: 6204.33.5010; 6204.53.3010

Sergio Galindo
Galindo Customhouse Broker
310 Rio Grande
Pan-Am Bldg - Suite 101
Eagle Pass, TX 78852

RE: Classification and status under the North American Free Trade Agreement (NAFTA), of women's woven jackets and skirts made in Mexico; Article 509; applicability of subheading 9802.00.90, HTS

Dear Mr. Galindo:

In your letter dated February 1, 1999, you requested a ruling on the classification and status under the North American Free Trade Agreement (NAFTA), on behalf of Rhodes Collections Inc. As you requested, the sample is being returned to you.

Style 2410 consists of a tailored women’s jacket and skirt. The jacket and skirt are manufactured from woven fabric that is 75% polyester and 25% rayon. Both garments are fully lined with a 100% acetate woven fabric. The long sleeved jacket is made up of four or more panels sewn together lengthwise and features a full front opening with a one button, off center, closure and a V shaped neckline. At the neck opening, there is a piece of sheer, man-made fiber fabric, sewn to the garment which serves as a collar or scarf. The fabric extends down the front of the jacket, meets at the side with another piece of sheer fabric and fastens. The skirt extends to the mid-calf and features a waistband with a rear button closure, a rear zipper and a rear center vent.

Note 3, Chapter 62, defines the term suit for purposes of headings 6203 and 6204. While the jacket consists of four or more panels and the jacket and skirt appear to be made up of identical fabric, i.e., the same fabric construction, style, color and composition, there is a difference that affects the classification. The fabric forming the collar is of a sheer plain weave while the fabric of the jacket and skirt is constructed from a complex weave (bengaline slub); the sheer fabric is not repeated on the skirt. The garments therefore are not made of the same fabric construction and composition and do not constitute a suit for tariff purposes. Accordinglt, the jacket and skirt comprising style 2410 are separately classifiable.

The applicable subheading for the jacket of style 2410 will be 6204.33.5010, Harmonized Tariff Schedule of the United States (HTS), which provides for women’s or girls’ jackets of synthetic fibers. The general duty rate will be 28.2% ad valorem.

The applicable subheading for the skirt of style 2410 will be 6204.53.5010, Harmonized Tariff Schedule of the United States (HTS), which provides for women’s or girls’ skirts of synthetic fibers. The general duty rate will be 16.5.2% ad valorem.

The jacket falls within textile category designation 635 and the skirt within category 642.

The designated textile and apparel category may be subdivided into parts. If so, visa and quota requirements applicable to the subject merchandise may be affected. Since part categories are the result of international bilateral agreements which are subject to frequent renegotiations and changes, to obtain the most current information available, we suggest that you check, close to the time of shipment, the Status Report On Current Import Quotas (Restraint Levels), an internal issuance of the U.S. Customs Service, which is available for inspection at your local Customs office.

You also question whether the jacket and skirt may be considered NAFTA originating goods. You have indicated that the yarn and fabric of the main body of the jacket and skirt, as well as the lining fabric, will be manufactured in the United States and that the fabric will be cut into component parts in the United States and sent to Mexico for assembly into a completed garment. The collar however, will be made in Canada.

The rule applicable to the jacket of subheading 6204, HTS, is set out in General Note 12(t)/ 62.21 which provides:

21. A change to subheadings 6204.31 through 6204.33 from any other chapter, except from headings 5106 through 5113, 5204 through 5212, 5307 through 5308 or 5310 through 5311, chapter 54, or headings 5508 through 5516, 5801 through 5802 or 6001 through 6002, provided that:

(A) the good is both cut and sewn or otherwise assembled in the territory of one or more of the NAFTA parties, and

(B) the visible lining fabric listed in chapter rule 1 for chapter 62 satisfies the tariff change requirements provided therein.

The rule applicable to the skirt of subheading 6204, HTS, is set out in General Note 12(t)/ 62.25 and is identical to the one cited above.

Furthermore, Chapter 62 rule 3 states:

For determining the origin of a good of this chapter, the rule applicable to that good shall 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.

As the collar does not not determine the tariff classification of the jacket, it may be disregarded in making the determination. Accordingly, we find that the jacket and skirt qualify for NAFTA preferential treatment.

Style 2410 qualifies for preferential treatment under the NAFTA because materials used in the production of the goods will undergo the change in tariff classification required by General Notes 12(t)/62.21 and 12(t)62.25, HTS. The garments produced in Mexico may be entitled to a free rate of duty under NAFTA upon compliance with applicable laws, regulations, and agreements. Further, as NAFTA originating products, the garments, when imported from Mexico, are not subject to quota or visa requirements.

Your final question is whether the jacket and skirt would be eligible for duty-free treatment under subheading 9802.00.90, HTS. You have indicated that the yarn and fabric of the garments as well as the lining fabric will be manufactured in the United States, that the fabric will be cut into component parts in the United States and sent to Mexico for assembly into a completed garment. The collar, however, will be made in Canada.

One of the special provisions contained in Annex 300?B of the North American Free Trade Agreement ("NAFTA") is Appendix 2.4, which provides for the elimination of customs duties on textile and apparel goods that are assembled in Mexico from fabrics wholly formed and cut in the U.S. To implement this provision, a new tariff item was created in subheading 9802.00.90, HTSUS.

Subheading 9802.00.90, HTSUS, provides as follows:

Textile and apparel goods, assembled in Mexico in whole of fabrics wholly formed and cut in the United States, which (a) were exported in condition ready for assembly without further fabrication, (b) have not lost their physical identity in such articles by change in form, shape or otherwise, and (c) have not been advanced in value or improved in condition abroad except by being assembled and except by operations incidental to the assembly process; provided that goods classifiable in Chapters 61, 62, or 63 may have been subject to bleaching, garment dyeing, stone?washing, acid?washing or perma?pressing after assembly asprovided for herein.

The entire good must be considered in making a 9802.00.90, HTS, determination. Subheading 9802.00.90, HTS, requires that all of the fabric be of U.S. origin. In this case, the fabric of the collar of the jacket is not of U.S. origin. Accordingly, the jacket will not qualify for duty?free treatment under subheading 9802.00.90, HTS. The skirt, however, is made of fabric wholly formed and cut in the U.S. and would therefore qualify for duty-free treatment. This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 C.F.R. 181).

A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise is imported. If the documents have been filed without a copy, this ruling should be brought to the attention of the Customs officer handling the transaction. If you have any questions regarding the ruling, contact National Import Specialist Patricia Schiazzano at 212 - 637-7080.

Sincerely,

Robert B. Swierupski
Director,

Previous Ruling Next Ruling

See also: