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HQ 965145





April 15, 2002

CLA-2 RR:CR:SM 965145 mbg

CATEGORY: CLASSIFICATION

TARIFF NO.: 6206.30.3060; 9819.11.09

Stacy L. Weinberg, Esq.
Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP 245 Park Avenue
33rd Floor
New York, NY 10167-3397

RE: African Growth and Opportunity Act; girl’s woven cotton shirt

Dear Ms. Weinberg:

This is in response to your letter of June 11, 2001, on behalf of your client, Mast Industries, requesting a binding ruling on the eligibility of a girl’s shirt for preferential treatment under the African Growth and Opportunity Act (“AGOA”).

FACTS:

Mast Industries plans to import from Mauritius a girl’s woven cotton blouse classified in subheading 6206.30.3060, of the Harmonized Tariff Schedule of the United States Annotated ("HTSUSA").

You have stated that the subject blouse, style number 852203, is constructed of 100 percent cotton woven fabric. The blouse features a full frontal opening with a six button closure, a shirt type collar and a hemmed bottom. The blouse has short sleeves with narrow adjustable elastic cords at the sleeve ends. On each of the elastic cords there is also a plastic toggle and plastic bead.

You have also stated in your original submission that the blouse will be cut and sewn in Mauritius from fabric made in the “AGOA region” and would fall under the “regional fabric provision.” Upon request, you have clarified that the blouse is constructed from fabric made in Madagascar from yarn manufactured in Madagascar and cut and sewn in Mauritius. The elastic cord, plastic bead and toggle are said to be of “foreign origin” and constitute less than 25 percent of the cost of the components for the subject blouse.

ISSUE:

Whether the subject apparel is eligible for preferential treatment under AGOA?

LAW AND ANALYSIS:

Title I of the Trade and Development Act of 2000, Pub. L 106-200, 114 Stat. 251, May 18, 2000, referred to as the African Growth and Opportunity Act (“AGOA”), seeks to promote trade opportunities between the U.S. and the countries of sub-Saharan Africa. The AGOA provides for the extension of duty-free treatment under the GSP to non-textile articles normally excluded from GSP duty-free treatment that are not import sensitive; and the entry of specific textile and apparel articles free of duty. In order to implement the AGOA, Customs issued Interim Regulations in T.D. 00-67, 65 Fed. Reg. 59668, which became effective October 1, 2000. With regard to the textile and apparel provisions, the law became effective on October 1, 2000, and shall remain in effect through September 30, 2008. See Sec. 112(f), AGOA.

The enhanced trade benefits provided by the AGOA are available to eligible textile and apparel articles imported directly from a country (1) that is designated as a beneficiary sub-Saharan African country and (2) which the U.S. Trade Representative (“USTR”) has determined by a proclamation published in the Federal Register has satisfied the requirements of the AGOA and therefore should be afforded the tariff treatment authorized in such Act. Such countries shall be enumerated in U.S. Note 1, Subchapter XIX, Chapter 98, HTSUS, whenever the USTR issues a Federal Register notice as described herein. See Presidential Proclamation 7350, Annex, dated October 2, 2000, 65 Fed. Reg. 59321.

Mauritius was designated as a beneficiary sub-Saharan African country under AGOA by Presidential Proclamation 7350. The USTR issued a determination finding that Mauritius has adopted an effective visa system and related procedures to prevent unlawful transshipment and the use of counterfeit documents in connection with shipments of textile and apparel articles and has implemented and follows, or is making substantial progress toward implementing and following, the customs procedures required by the AGOA, effective March 7, 2001. See 66 Fed. Reg. 14425, dated March 12, 2001.

Subheading 9819.11.09, HTSUS, provides as follows:

Apparel articles wholly assembled in one or more such countries from fabric wholly formed in one or more such countries from yarn originating in either the United States or one or more such countries (including fabrics not formed from yarns, if such fabrics are classifiable under heading 5602 or 5603 and are wholly formed and cut in one or more such countries), subject to the provisions of U.S. Note 2 to this subchapter.

U.S. Note 2, Subchapter XIX, Chapter 98, HTSUS, provides for a quantitative restriction for apparel articles classified in subheading 9819.11.09. U.S. Note 2(a) and (b), provide:

(a) Imports of apparel articles under subheadings 9819.11.09 and 9819.11.12 shall be limited, in the period beginning on the date announced in a notice published in the Federal Register by the United States Trade Representative and continuing through the close of September 30, 2001, to an aggregate quantity not to exceed 1.5 percent of the aggregate square meter equivalents of all apparel articles imported into the United States in the preceding 12-month period for which data are available. Of that aggregate quantity, an amount not to exceed 1 percent of such aggregate square meter equivalents shall be eligible to enter under such subheadings during the period beginning on the date announced in such Federal Register notice and continuing through the close of December 31, 2000. The remaining 0.5 percent of such aggregate square meter equivalents, together with any quantity remaining unfilled from the 1 percent eligible to enter prior to January 1, 2001, shall be eligible to enter under such subheadings during the period beginning on January 1, 2001 and continuing through the close of September 30, 2001.

(b) Such imports of apparel articles under subheadings 9819.11.09 and 9819.11.12 shall be limited, in each of the seven one-year periods beginning on October 1, 2001, to an aggregate quantity not to exceed the applicable percentage set forth herein of aggregate square meter equivalents of all apparel articles imported into the United States in the preceding 12-month period for which data are available:

12-Month Period Applicable Percentage

October 1, 2001 through September 30, 2002 1.7857 October 1, 2002 through September 30, 2003 2.0714 October 1, 2003 through September 30, 2004 2.3571 October 1, 2004 through September 30, 2005 2.6428 October 1, 2005 through September 30, 2006 2.9285 October 1, 2006 through September 30, 2007 3.2142 October 1, 2007 through September 30, 2008 3.5

In this case, the yarn and the fabric are wholly formed in Madagascar, and is cut and wholly assembled into apparel in Mauritius. Accordingly, the garments would be entitled to be classified in subheading 9819.11.09, HTSUS, subject to the quantitative limits set forth in U.S. Note 2, Subchapter XIX, Chapter 98, HTSUS.

II. Findings & Trimmings Requirements

Subchapter XIX, U.S. Note 3(a), HTSUSA, provides:

An article otherwise eligible for preferential treatment under any provision of this subchapter shall not be ineligible for such treatment because the article contains—

(i) findings and trimmings of foreign origin, if the value of such findings and trimmings does not exceed 25 percent of the cost of the components of the assembled article[.]

The Interim Regulations, regarding findings and trimmings further provide:

An article otherwise described under paragraph (a) of this section will not be ineligible for the preferential treatment referred to in [19 C.F.R.] § 10.211 because the article contains:

(A) Findings and trimmings of foreign origin, if the value of those findings and trimmings does not exceed 25 percent of the cost of the components of the assembled article. For the purposes of this section “findings and trimmings” include, but are not limited to, hooks and eyes, snaps, buttons, ‘bow buds’, decorative lace trim, elastic strips (but only if they are each less than 1 inch in width and are used in the production of brassieres), zippers (including zipper tapes), labels, and sewing thread except in the case of an article described in paragraph (a)(3) of this section.

See 19 C.F.R. §10.213(b)(1)(i).

Therefore, in regard to the facts of this case, the subject blouse classified in subheading 6206.30.3060, HTSUSA, is said to be cut and assembled in Mauritius from fabrics produced in Madagascar. The buttons, plastic toggle, and plastic bead of foreign origin and used in style number 852203 are acceptable as findings and trimmings under AGOA. Furthermore, the elastic cording used in each of the sleeves is also of foreign origin. The legislation limits the scope of the findings and trimmings exception provided for in AGOA by only allowing for a narrow use of elastic strips and specifically states that elastic strips are considered findings and trimmings “only if they are each less than 1 inch in width and are used in the production of brassieres.” However, the subject blouse uses a narrow elasticized cording for purely decorative purposes in the sleeves and therefore this cording would not be precluded as a finding and trimming.

Customs distinguishes the narrow elasticized cording in the subject merchandise from the drawstring cord in a jacket which was the subject of HQ 559794, dated June 3, 1996. In HQ 559794, Customs viewed the drawstring cord as a utilitarian item for the jacket. The drawstring was not considered to be a finding or trimming in HQ 559794 because the textile drawstring cord was a fabric component which was not analogous to findings and trimmings, whereas in the subject blouse the elasticized drawstring is decorative in its purpose.

HOLDING:

The subject blouse is eligible for preferential treatment under the AGOA and is appropriately entered under visa group 4 and preference group D.

Provided the cost of the foreign findings and trimmings is less than 25 percent of the cost of the components of the assembled blouse and if constructed of fabrics wholly formed in an AGOA beneficiary country from yarns originating in either the US or an AGOA beneficiary country, the subject girl’s blouse, as described above, is eligible for duty free/quota free treatment under subheading 9819.11.09, HTSUSA, provided it is imported directly into the customs territory of the U.S. from an AGOA 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

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