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HQ 965014




April 24, 2002

CLA-2 RR:CR:TE 965014 mbg

CATEGORY: CLASSIFICATION

TARIFF NO.: 6002.40.8080; 9820.11.09

Ms. Sandra Tovar
CST, Inc.
120 C Commerce Circle
Fayetteville, GA 30214

RE: CBTPA; knit elastic fabrics

Dear Ms. Tovar:

This is in response to your letter of March 26, 2001, requesting a binding ruling on behalf of your client, Just-A-Stretch of R.I., Inc., requesting a binding ruling on the eligibility of garments which incorporate certain knit elastic fabrics for preferential treatment under the United States-Caribbean Basin Trade Partnership Act (“CBTPA”).

FACTS:

You are requesting classification for certain knit elastic fabrics manufactured by Just-A-Stretch of R.I., Inc. You have provided that the subject fabrics are likely to be manufactured of polyester or other man made fiber yarns and would contain 5 percent or more of elastomeric yarns or rubber thread. All of the yarns are produced in the United States and shipped to the Dominican Republic for knitting. The final knitted elastic fabrics are then sold to producers of apparel. You have submitted nine samples of the knit elastic fabrics which range in size from 5/16 of an inch to 1 5/16 of an inch in width.

ISSUE:

Whether wearing apparel which incorporates the subject knit elastic fabrics are eligible for preferential tariff treatment under the CBTPA?

LAW AND ANALYSIS:

Title II of 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 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. The Dominican Republic is designated as a CBTPA beneficiary country (see Presidential Proclamation 7351, dated October 2, 2000, 65 Fed. Reg. 59329) and has satisfied the second criterion (see 65 Fed. Reg. 60236, dated October 10, 2000).

Garments meeting the description contained in subheading 9820.11.09, HTSUSA, are eligible for preferential tariff treatment as provided for in Subchapter XX, U.S. Note 2(a) HTSUSA, which provides:

Except as provided in this note, textile and apparel articles described in subheading 9820.11.03 through 9820.11.30, inclusive, of this subchapter that are imported directly into the custom territory of the United States from a designated beneficiary CBTPA country enumerated in general note 17(a) to the tariff schedule shall be eligible to enter free of duty and free of any quantitative limitations, except as provided in this subchapter, under the terms of the provisions set forth in such subheadings and applicable legal notes, as indicated by the rate of duty of “Free” in the Special rates of duty subcolumn for such provisions.

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.

The subject knit elastic fabrics are eo nomine classified in subheading 6002.40.8080, HTSUSA, which provides for “Knitted or crocheted fabrics of a width not exceeding 30 cm, containing by weight 5 percent of more of elastomeric yarn or rubber thread, other than those of heading 6001: Containing by weight 5 percent or more of elastomeric yarn but not containing rubber thread: Other: Other.”

Furthermore, subheading 9820.11.09, HTSUSA, provides for the duty-free entry of:

Apparel articles (other than socks provided for in heading 6115 of the tariff schedule) knit to shape in such a country from yarns wholly formed in the United States; knitted or crocheted apparel articles (except t-shirts, other than underwear, classifiable in subheadings 6109.10.00 and 6109.90.10 and described in subheading 9820.11.12) cut and wholly assembled in one or more such countries from fabrics formed in one or more such countries or from fabrics formed in one or more such countries and the United States, all the foregoing from yarns wholly formed in the United States (including fabrics not formed from yarns, if such fabrics are classifiable in heading 5602 or 5603 of the tariff schedule and are formed in one or more such countries) and subject to the provisions of U.S. note 2(b) to this subchapter.

Therefore, in regard to the facts of this case, the subject knit elastic fabrics are said to be manufactured in the Dominican Republic from man made fiber yarns and elastomeric yarns produced in the United States. Therefore, apparel garments utilizing the subject knit elastic fabrics would be eligible to receive preferential treatment under the CBTPA provided the garments would otherwise qualify for such benefits.

HOLDING:

Provided the subject knit elastic fabrics are manufactured as described above, apparel garments which utilize the subject knit elastic fabrics may be eligible for duty free/quota free treatment under subheading 9820.11.09, HTSUSA, provided they are imported directly into the customs territory of the U.S. from a CBTPA beneficiary country and the apparel garments meet the requirements of the relevant HTSUSA subheading.

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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