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NY I80835




May 17, 2002

CLA-2-61:RR:NC:TA:359:I80835

CATEGORY: CLASSIFICATION

TARIFF NO.: 6110.11.0080

Ms. Karanda Ho
L&K Knitters (Canada), Ltd.
245 West Beaver Creek Road, Unit 1
Richmond Hill, Ontario, Canada L4B 1L1

RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of women’s knitwear from Canada; Article 509

Dear Ms. Ko:

In your letter dated April 17, 2002, you requested a ruling on the status of one style of women’s knitted wearing apparel from Canada under the NAFTA.

Style W-612 is a woman’s knitted pullover with a turtleneck and long sleeves. The bottom and the sleeves of the pullover are finished with rib knit fabric. In addition, the sleeve ends have a functional side opening that fastens with five buttons. The jersey knitted fabric of the pullover has more than nine stitches per two centimeters, measured in the direction in which the stitches were formed. The fiber content is 100% wool. Your sample is returned as requested.

The applicable tariff provision for the pullover, Style W-612, will be 6110.11.0080, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for sweaters, pullovers---knitted or crocheted: of wool or fine animal hair: of wool: other: women’s The general rate of duty will be 16.2% ad valorem.

The pullover falls within textile category designation 438. Based upon international textile trade agreements products of Canada are neither subject to the restraints of quota nor the requirement of a visa.

You state that the manufacturing process for this style is as follows:
the wool yarn is spun in China the front, back and sleeve panels are knit to shape in Canada the panels are assembled into the pullover by looping in China the pullover is washed, ironed, packed and inspected in China the finished pullover is shipped to the United States. Since, as you have stated, all of the major panels (the sleeves, the back, and the front) are knit to shape in Canada, the country of origin for Style W-612 is Canada. Section 102.21 ©(3), Customs Regulations, noted.

However, Style W-612, the knitted woman’s pullover, does not qualify for preferential treatment under the NAFTA because one or more of the non-originating materials used in the production of this garment will not undergo the change in tariff classification required by General Note 12(t)/61.35, HTSUSA. Specifically, the style is not “both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or more of the NAFTA parties,” as is required by the General Note.

We also note Additional U.S. Note 3 (a), Section XI, HTSUSA, which provides for a reduced rate of duty (the Tariff Preference Levels – TPL) for apparel goods of Chapters 61 and 62, which are imported from Canada, provided that they 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. Since the pullover is not imported from Canada, and it is not sewn or otherwise assembled in the territory of a NAFTA party, it does not qualify for this reduced rate of duty.

This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 C.F.R. 181).

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 Mike Crowley at 646-733-3049.

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
Director,

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