NY G82162 - The status under the North American Free Trade Agreement (NAFTA), Article 509, of pocketing fabric from outside the NAFTA territory, made into pockets and incorporated into garments. - United States International Trade Commision Rulings

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NY G82162

September 25, 2000

CLA-2-62:RR:NC:TA:361 G82162

CATEGORY: NAFTA

Mr. Jason M. Waite
Grunfeld, Desiderio, Lebowitz & Silverman LLP Counselors at Law
303 Peachtree Street, N.E. Suite 2980
Atlanta, GA 30308

RE: The status under the North American Free Trade Agreement (NAFTA), Article 509, of pocketing fabric from outside the NAFTA territory, made into pockets and incorporated into garments.

Dear Mr. Waite:

In your letter of September 12, 2000, you requested a general ruling on the status under the NAFTA of garments of Chapter 61 and 62, Harmonized Tariff Schedules of the United States (HTSUS) imported from Mexico with non-originating pocketing fabric. You have noted that men’s and women’s jeans and casual pants will be the most prevalent type of garments for which this ruling is sought. The ruling is requested on behalf of Cotswold Industries, Inc. No sample was provided with the request.

NAFTA DETERMINATION:

The fibers, yarns, and fabrics comprising the bodies of imported garments are stated to be all produced in the United States, Canada and/or Mexico. The fabric will be cut into garment parts in Mexico and those parts will be assembled into the completed garments by sewing in Mexico. The pocketing fabric, which is not produced in the United States, Canada or Mexico, will be shipped to Mexico where it will be made into pockets and incorporated garments.

The issue presented is whether this pocketing fabric will cause otherwise originating garments to be non-originating goods and, therefore, ineligible for NAFTA treatment. You have limited your request to those garments for which the originating determination uses the following rule found in HTSUS General Note 12(t) 61 and 62. A change to tariff items (the Chapter 61 or 62 heading) 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 or 6001 through 6002, provided that the good is both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or more of the NAFTA parties.

You have also cited Chapter 61, rule 2, and Chapter 62, rule 3, General Note 12(t), HTSUS (identical rules), which are applicable to goods classifiable in chapters 61 and 62, and provide, in part:

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

Pocketing fabric that is made into a pocket, in general, is not considered in determining the classification of garments into which it has been incorporated. The chapter rules cited above require that only the component which determines the tariff classification of the good must satisfy the tariff change requirements. Therefore, assuming the garment is classified in a provision requiring the above General Note 12(t) rule, and the garment meets that requirement, then that garment is considered an originating good according to the terms of the NAFTA.

HOLDING:

Under the above cited rule, where a garment’s fibers are spun into yarns in Canada, Mexico and/or the United States, those yarns are formed into fabric in Canada, Mexico and/or the United States, and the fabrics are cut and sewn into finished garments in Mexico, those garments are originating goods under the NAFTA even though the pocketing fabric in the garments may be from outside the NAFTA territory.

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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