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March 16, 1999

CLA-2-62:RR:NC:3:353 D88925

CATEGORY: CLASSIFICATION

TARIFF NO.: 6217.90.9085

Mr. Richard Barkowitz
Barwood Group
124 South Lancaster
Mt. Prospect, IL 60056

RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA) and Tariff Preference Levels (TPL) for tie parts.

Dear Mr. Barkowitz:

In your letter dated February 11, 1999, you requested a ruling regarding tariff classification, status under NAFTA and eligibility for TPL.

FACTS:

The submitted samples are cut to shape tie tips. Items Cleopatra and Carlos consist of woven 100% acetate fabric.

The fabric is woven in Italy. The fabric is shipped to Canada where it is cut to shape for use as tie tips. The cut to shape tie tips are then imported into the United States.

CLASSIFICATION:

The applicable subheading for the Cleopatra and Carlos cut to shape tie tips will be 6217.90.9085, Harmonized Tariff Schedule of the United States (HTS), which provides for “Other made up clothing accessories; parts of garments or of clothing accessories, other than those of heading 6212: Parts: Other...Other: Of man-made fibers.” The general rate of duty will be 15% ad valorem.

NAFTA:

Regarding the North American Free Trade Agreement (NAFTA), General Note (GN) 12(a)(i) states:
a) Goods originating in the territory of a party to the North American Free Trade Agreement (NAFTA) are subject to duty as provided herein. For the purposes of this note??

(i) Goods that originate in the territory of a NAFTA party under the terms of subdivision (b) of this note and that qualify to be marked as goods of Canada under the terms of the marking rules set forth in regulations issued by the Secretary of the Treasury (without regard to whether the goods are marked), when such goods are imported into the customs territory of the United States and are entered under a subheading for which a rate of duty appears in the "Special" subcolumn followed by the symbol "CA" in parentheses, are eligible for such duty rate, in accordance with section 201 of the North American Free Trade Agreement Implementation Act.

GN 12(b)(ii)(A) states in part:

(b) 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??

(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...

Accordingly the subject merchandise qualifies for NAFTA treatment only if the provisions of General Note 12(b)(ii)(A) are met, that is, if the merchandise is transformed in the territory of Canada so the non-originating materials undergo a change in tariff classification as described in subdivision (t).

As the tie tips are classified in heading 6217, HTSUS, GN 12(t)/62.38 applies, which states:

A change to headings 6213 through 6217 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 the good is both cut and sewn or otherwise assembled in the territory of one or more of the NAFTA parties.

As the fabric from Italy is classified under heading 5516, which is an excepted heading, the tie tips are not NAFTA eligible.

TPL:

Tie tips are considered apparel goods and are thus eligible for consideration under Trade Preference Levels (TPL). Additional U.S. Note 3(a) applies, which states:

The rate of duty in the “Special” subcolumn of rates of duty column 1 followed by the symbol “CA” in parentheses shall apply to imports from Canada, up to the annual quantities specified in subdivisions (f) of this note, of apparel goods provided for in chapters 61 and 62 that are both cut (or knit to shape) and sewn or otherwise assembled in the territory of a NAFTA party from fabric or yarn produced or obtained outside the territory of one of the NAFTA parties.

Although the tie tips are considered apparel goods, they have only been cut to shape in Canada; they have not been sewn or otherwise assembled in Canada. The tie tips do not meet the requirements of Additional U.S. Note 3(a), and are thus not eligible for TPL treatment.

This ruling is being issued under the provisions of Parts 177 and 181 of the Customs Regulations (19 C.F.R. 177 and 181).

This ruling letter is binding only as to the party to whom it is issued and may be relied on only by that party.

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 Kenneth Reidlinger at 212-637-7084.

Sincerely,

Robert B. Swierupski
Director,

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