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NY I89181




December 4, 2002

CLA-2-62:RR:NC:TA:358 I89181

CATEGORY: CLASSIFICATION

TARIFF NO.: 6211.42.0081; 6217.10.9510

Betsy Thomas
BUMMIS
55 Mont Royal West, Suite 210
Montreal, QC. H2T 2S6

RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of training pants and liners from Canada; Article 509

Dear Ms. Thomas:

In your letter dated November 25, 2002, you requested a ruling on the status of training pants and liners from Canada under the NAFTA.

Submitted samples 1 and 2 are TRAINING PANT garments for toddlers, resembling panties, manufactured from an outershell of knitted polyester, which is coated on its inner surface by urethane, from a lining of cotton flannel, and from a woven, three-layered padding of 94% cotton/6% polyester throughout the crotch. By providing absorbency, it is this padding which imparts the essential characteristic of these garments.

Sample 3 is a TERRY LINER and is an elliptical pad, constructed from three layers of woven terry fabric of 94% cotton/6% polyester, sewn together. Sample 4 is a STAY DRY LINER and it differs from “3” by a fourth layer of knitted mesh of polyester which forms one of the outer surfaces of the item. You state that samples 3 and 4 are worn within cotton diapers to provide additional absorbency.

The applicable subheading for samples 1 and 2 will be 6211.42.0081, Harmonized Tariff Schedule of the United States (HTS), which provides for other garmentsgirls’, of cotton, other; and for samples 3 and 4 will be 6217.10.9510, which provides for other made up clothing accessories, parts of garments or of clothing accessories, other than those of heading 6212, accessories, other, other, of cotton. The duty rates will be 8.2 and 14.8 per cent ad valorem, respectively.

All of the submitted samples fall within textile category designation 359. Based upon international textile trade agreements products of Canada are not presently subject to quota or the requirement of a visa.

The designated textile and apparel categories and their quota and visa status are the result of international agreements that are subject to frequent renegotiations and changes. To obtain the most current information, we suggest that you check, close to the time of shipment, the U.S. Customs Service Textile Status Report, an internal issuance of the U.S. Customs Service, which is available at the Customs Web site at www.customs.gov. In addition, the designated textile and apparel categories may be subdivided into parts. If so, visa and quota requirements applicable to the subject merchandise may be affected and should also be verified at the time of shipment.

You inquire as to whether the training pants and liners may be considered NAFTA originating goods. The interior cotton lining originates in China and all other components originate in the U.S. and/or Canada.

As stated previously, the essential character of the training pants, samples 1 and 2, is imparted by the woven cotton terry absorbent liner insert as this is the fabric which provides the absorbency.

LAW AND ANALYSIS:

General Note 12, HTSUS, which incorporates Article 401 of the NAFTA, into the HTSUS. Note 12(b) provides in pertinent part:

For the purposes of this note, goods imported into the customs territory of the United States are eligible for the tariff treatment and quantitative limitations set forth in the tariff schedule as “goods originating in the territory of a NAFTA party” only if--

(I) they are goods wholly obtained or produced entirely in the territory of Canada, Mexico and/or the United States; or

(ii) they have been transformed in the territory of Canada, Mexico and/or the United States so that--

(A) except as provided in subdivision (f) of this note, each of the non-originating materials used in the production of such goods undergoes a change in tariff classification described in subdivisions (r), (s) and (t) of this note or the rules set forth therein, or,

(B) the goods otherwise satisfy the applicable requirements of subdivisions (r), (s) and (t) where no change in tariff classification is required, and the goods satisfy all other requirements of this note; or

(iii) they are goods produced entirely in the territory of Canada, Mexico and/or the United States exclusively from originating materials....

Samples 3 and 4, the TERRY LINER and STAY DRY LINER, being wholly obtained or produced entirely in the territory of Canada, Mexico and the United States, will meet the requirements of HTSUSA General Note 12(b)(i), and will therefore be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements.

Samples 1 and 2 will not be wholly obtained or produced entirely in the territory of Canada, Mexico and/or the U.S. Therefore, we turn to the rules applicable to goods of subheading 6211.42.0081, HTSUS, where we have stated that the training pant at issue is classifiable, which is provided for in General Note 12(t)/ 62.35.

General Note 12(t)/62.35 provides:

A change to subheading 6211.31 through 6211.49 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, 5801 through 5802 or 6001 through 6002, provided that the good is both cut and sewn or otherwise assembled in the territory of one or more of the NAFTA parties.

In applying the above cited rules, Note 12(t)/62, Chapter rule 3, must also be applied. That rule states:

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. If the rule requires that the good must also satisfy the tariff change requirements for visible lining fabrics listed in chapter rule 1 for this chapter, such requirement shall only apply to the visible lining fabric in the main body of the garment, excluding sleeves, which covers the largest surface area, and shall not apply to removable linings.

For purposes of this ruling request, the component that determines the tariff classification of the good is the woven terry absorbent interior liner. As this terry interior liner is cotton pile fabric of heading 5802 that is made from fibers that are wholly obtained or produced in the territory of Canada, Mexico and the United States and subsequently woven in the United States and further processed here, it satisfies the tariff change requirements of the notes. The other components may be disregarded in determining whether the training pants are eligible for NAFTA preferential tariff treatment. As provided by Chapter rule 3, General Note 12(t)/62.35, only applies to the component that determines the tariff classification of the good. As the knitted polyester outershell and the woven cotton flannel interior lining do not determine the tariff classification of the training pant, they may be disregarded. Accordingly, we find that samples 1 and 2, TRAINING PANTS, will qualify for NAFTA preferential treatment, including duty free treatment, upon return to the U.S assuming the cotton fabric originates in the territory of one or more of the NAFTA parties and all subsequent operations performed there.

The merchandise qualifies for preferential treatment under the NAFTA assuming the materials used in the production of the goods undergo the change in tariff classification required by General Note 12(t)/62.35.

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 Bruce Kirschner at 646.733.3048.

This ruling letter is binding only as to the party to whom it is issued and may be relied on only by that party.

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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