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HQ 561880




November 26, 2001

MAR-2 RR:CR:SM 561880 KSG

CATEGORY: CLASSIFICATION

TARIFF NO.: 9820.11.24

Patrick D. Gill, Esq.
Rode & Qualey
295 Madison Avenue
New York, NY 10017

RE: U.S.-Caribbean Basin Trade Partnership Act; men's and boys' shirts; subheading 9820.11.24; subheadings 6205.20 and 6205.30, HTSUS: GN 12(t)

Dear Mr Gill:

This is in response to your letter of August 18, 2000, on behalf of Capital-Mercury Apparel, Ltd., requesting a binding ruling on the eligibility of certain men’s and boys’ shirts for duty-free treatment under the United States-Caribbean Basin Trade Partnership Act (“CBTPA”).

FACTS:

The men’s and boys’ shirts will be made of cotton or man-made fiber fabrics. The fabrics used for the shirts will either be oxford fabrics classified in subheadings 5208.29, 5208.39, and 5208.49, of the Harmonized Tariff Schedule of the United States (“HTSUS”), or broadcloth fabrics classified in subheadings 5208.22, 5208.32, 5210.21, 5210.31, 5513.11, and 5513.21, HTSUS, and possibly other eligible fabrics. The fabric used for the outer shell of the shirts, exclusive of collars and cuffs, will be manufactured in countries other than the U.S. or CBTPA beneficiary countries. The shirts will be cut and assembled in Guatemala or El Salvador. You state that the shirts will be classified in subheadings 6205.20 and 6205.30, HTSUS. For the purposes of this ruling, we are assuming that these are the correct classifications for the shirts.

ISSUE:

Whether the shirts, manufactured as described above, are eligible for duty-free treatment under the CBTPA.

LAW AND ANALYSIS:

Title II of the the Trade and Development Act of 2000, (Pub. L. 106-200, 114 Stat. 251), concerns trade benefits for the Caribbean Basin and is referred to as the United States-Caribbean Basin Trade Partnership Act ("CBTPA"). Section 211 of the CBTPA amended section 213 (b) of the Caribbean Basin Economic Recovery Act (CBERA) (19 U.S.C. 2703(b)) to provide expanded trade benefits during a “transition period” to designated countries in the Caribbean Basin.

Section 211 of the CBTPA eliminates tariffs and quantitative restrictions on specific textile and apparel articles and extends North American Free Trade Agreement duty treatment standards to non-textile articles that previously were ineligible for preferential treatment under the CBERA. “Transition period” is defined in section 19 U.S.C. 2703(b)(5)(D) as meaning, with respect to a designated CBTPA country, the period that begins on October 1, 2000, and ends on the earlier of September 30, 2008, or the date on which a free trade agreement enters into force with respect to the U.S. and the CBTPA country.

Presidential Proclamation 7351, dated October 2, 2000, published in the Federal Register on October 4, 2000 (65 Fed. Reg. 59329), implemented the CBTPA by designating the eligible CBTPA countries and amending Chapter 98, HTSUS (including the creation of new subchapter XX) to facilitate the entry of the specific textile and apparel articles eligible for preferential treatment under the CBTPA.

The enhanced trade benefits provided by the CBTPA are available to eligible articles imported directly from a country: (1) that is designated as a CBTPA beneficiary country; and (2) which the U.S. Trade Representative (“USTR”) has determined has implemented and follows, or is making substantial progress toward implementing and following certain customs procedures that allow U.S. Customs to verify the origin of the articles. Both Guatemala and El Salvador are designated as CBTPA beneficiary countries (see Presidential Proclamation 7351, dated October 2, 2000, 65 Fed. Reg. 59329) and have satisfied the second criterion (see 65 Fed. Reg. 60236, dated October 10, 2000).

In addition, Interim Customs Regulations to implement the trade benefit provisions of section 211 of the CBTPA were published in the Federal Register as T.D. 00-68 on October 5, 2000 (65 Fed. Reg. 59650). The T.D. invited public comments to be submitted on the Interim Regulations by December 4, 2000. It is noted that the issue raised in this ruling letter is outside the scope of the comments received.

The relevant provision is set forth in 19 U.S.C. 2703(b)(2)(A)(v)(I), which provides as follows:

Apparel articles that are both cut (or knit-to-shape) and sewn or otherwise assembled in one or more CBTPA beneficiary countries, from fabrics or yarn that is not formed in the United States or in one or more CBTPA beneficiary countries, to the extent that apparel articles of such fabrics or yarn would be eligible for preferential treatment, without regard to the source of the fabrics or yarn, under Annex 401 of the NAFTA.

Subheading 9820.11.24, HTSUS, was created for the entry of articles eligible for preferential treatment under the above section (see Presidential Proclamation 7351, dated October 2, 2000, published in the Federal Register on October 4, 2000 (65 Fed. Reg. 59329)). This subheading provides for the duty-free entry of:

Apparel articles both cut (or knit-to-shape) assembled in one or more such countries from fabrics or yarn not formed in the United States or in one or more such countries, provided that such apparel articles of such fabrics or yarn would be considered an originating good under the terms of general note 12(t) to the tariff schedule without regard to the source of the fabric or yarn if such apparel article had been imported from the territory of Canada or the territory of Mexico directly into the customs territory of the United States.

Therefore, in regard to the facts of this case, imported men’s and boys' shirts classified in subheading 6205.20 or 6205.30, HTSUS, cut and assembled in Guatemala or El Salvador from foreign fabrics (not produced in the U.S. or one or more CBTPA beneficiary countries), are eligible for preferential treatment if the fabric is identified in the NAFTA preference subheading rule in General Note (“GN”) 12(t)62.SR30, HTSUS. The subheading rule states:

Men’s or boys’ shirts of cotton (subheading 6205.20) or of man-made fibers (subheading 6205.30) shall be considered to originate if they are both cut and assembled in the territory of one or more of the parties and if the fabric of the outer shell, exclusive of collars or cuffs, is wholly of one or more of the following:

Various fabrics are then listed in paragraphs (a) through (i). Fabrics of subheadings 5208.29, 5208.39, 5208.49, 5208.22, and 5208.32, HTSUS, of average yarn number exceeding 135 metric are listed in the subheading rule in GN 12(t) 62.SR30(a). Fabrics of subheading 5210.21, and 5210.31, HTSUS, not of square construction, containing more than 70 warp ends and filling picks per square centimeter, of average yarn number exceeding 70 metric are listed in the subheading rule in GN 12(t) 62.SR30(c). Fabrics of subheading 5513.11, and 5513.21, HTSUS, not of square construction, containing more than 70 warp ends and filling picks per square centimeter, of average yarn number exceeding 70 metric are listed in the subheading rule in GN 12(t)62.SR30(b).

Since the foreign fabrics used in this case to make the outer shell of the men’s and boys’ shirts classified in subheading 6205.20 or 6205.30, HTSUS, are listed in the applicable subheading rule in GN 12(t), the shirts are eligible for duty-free treatment under subheading 9820.11.24, HTSUS, provided they are cut and assembled in Guatemala or El Salvador, both CBTPA beneficiary countries, and they are imported directly to the U.S. from a CBTPA beneficiary country.

HOLDING:

Based on the information provided, the men’s and boys' shirts, are eligible for duty free/quota free treatment under subheading 9820.11.24, HTSUS, provided they are manufactured as described in this case, are classified in subheadings 6205.20 or 6205.30, HTSUS, are made from the oxford or broadcloth fabrics indicated above, and are imported directly into the customs territory of the U.S. from a CBTPA beneficiary country.

A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise is entered. If the documents have been filed without a copy, this ruling should be brought to the attention of the Customs officer handling the transaction.

Sincerely,

John Durant, Director
Commercial Rulings Division

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