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NY F85402




May 8, 2000

CLA-2-62:RR:NC:TA:361 F85402

CATEGORY: NAFTA

Mr. Sean Frankel
Import & Export Manager
Azteca Production International, Inc.
5804 E. Slauson Avenue
Commerce, CA 90040

RE: The status under the North American Free Trade Agreement (NAFTA), Article 509, of women’s denim jeans from Mexico; applicability of Tariff Preference Levels (TPLs) to such garments.

Dear Mr. Frankel:

In your letter of March 28, 2000, you requested a ruling on the status of women’s denim jeans from Mexico under the NAFTA. No sample was submitted with your request.

NAFTA DETERMINATION

According to the information provided, on occasion, non-NAFTA cotton woven denim fabric is used in the production of women’s denim jeans. The fabric will be cut and sewn into a completed garment in Mexico.

As you have indicated, the denim jeans do not qualify for preferential treatment under the NAFTA because one or more of the non-originating materials used in the production of the goods will not undergo the change in tariff classification required by General Note 12(t)/62.28, HTSUSA.

You have also requested a clarification of the status of such garments under the provisions of the Tariff Preference Levels (TPL). The requirements of the TPL’s are found in Section XI, Additional U.S. note 3, which states, in part: 3. (b) The rate of duty in the "Special" subcolumn of rates of duty column 1 followed by the symbol "MX" in parentheses shall apply to imports from Mexico, up to the annual quantities specified in subdivisions (g)(i) 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.

(d) Notwithstanding the provisions of subdivisions (b) and (c) of this note, the rate of duty in the "Special" subcolumn of rates of duty column 1 followed by the symbol "MX" in parentheses shall not apply to imports from Mexico of the following:

(i) apparel goods provided for in chapters 61 and 62, in which the fabric that determines the tariff classification of the good is classified in one of the following subheadings--

(a) blue denim: subheadings 5209.42, 5211.42, 5212.24.60 and 5514.32.00;

Specifically, you requested a clarification of the rule, specifically as to whether the TPL exclusion covers all denim or only blue denim. The language of the HTS, which is based on the language found in the NAFTA, is clear, in that only blue denim of the named subheadings is excluded from the TPLs, not all denim. Thus, if the garments in question were made from blue denim, the TPL would not apply. If, however, the garments were made from any other color denim fabric, under the above scenario, then these garments may qualify for a preferential duty rate under the Tariff Preference Levels defined in the HTSUSA, section XI, additional U.S. note 3(b). Since the garments are cut and sewn in Mexico, they would qualify for the reduced rate up to the quantity specified in note 3(g) provided that a Certificate of Eligibility accompanies the imported merchandise.

HOLDING:

The women’s denim jeans, a product of Mexico, are not considered to originate under the rules of the NAFTA. The garments may qualify for a TPL if they are not made from blue denim fabric, and if they meet the other requirements noted above.

This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 C.F.R. 181), as well as Part 177 of the Customs Regulations (19 C.F.R. 177). Should it be subsequently determined that the information furnished is not complete and does not comply with 19 CFR 177.9(b)(1), the ruling will be subject to modification or revocation. In the event there is a change in the facts previously furnished, this may affect the determination of country of origin. Accordingly, if there is any change in the facts submitted to Customs, it is recommended that a new ruling request be submitted in accordance with 19 CFR 177.2.

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 Angela De Gaetano at 212-637-7029.

Should you wish to request an administrative review of this ruling, submit a copy of this ruling and all relevant facts and arguments within 30 days of the date of this letter, to the Director, Commercial Rulings Division, Headquarters, U.S. Customs Service, 1300 Pennsylvania Ave. N.W., Washington, D.C. 20229.

Sincerely,

Robert B. Swierupski

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