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HQ 561892

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August 30, 2002

CLA-2 RR:IA 561892 RFC

CATEGORY: CLASSIFICATION

TARIFF NO.: 6110.30; 6002.43

Port Director
Port of St. Albans
U.S. Customs Service
50 S. Main Street
St Albans, VT 05478

RE: Internal Advice; NAFTA; HTSUS General Note 12; Jerseys

Dear Sir or Madam:

This is in reference to your September 15, 2000, memorandum seeking internal advice concerning whether certain hockey jerseys are eligible for preferential tariff treatment under General Note 12 to the Harmonized Tariff Schedule of the United States (HTSUS). The internal advice was requested by Deringer Logistics Consulting Group, 1 Lincoln Blvd., Suite 225, Rouses Point, New York 12979, on behalf of Sport Maska Inc.

FACTS:

The facts as presented in a September 12, 2000, submission by the Deringer Logistics Consulting Group, are as follows: Hockey jerseys are cut and sewn in Canada from fabrics that are knit and contain the same fiber content—100 percent polyester. Three types of jerseys have been presented: type 104 (Maple Leaf Toronto), type 168 (Nashville Predators) and type 108 (All Star). Samples of the jerseys were submitted with the request.

The jerseys are made from NAFTA originating 100 percent polyester knit fabric and non-originating 100 percent polyester knit fabric. The non-originating polyester knit fabric is used to make the following portions of each type of jersey:

Type 104: side mesh panels

Type 168: dazzle fabric portion that begins at top of shoulder and runs down sleeves and in small sections at the bottom front of the garment

Type 108: dazzle fabric portions that run in small diagonal strip in front and back and in wider strip along the sleeves

The above-mentioned portions of the jerseys are made from 100 percent polyester knit fabric that is non-originating material.

ISSUE:

Whether the goods satisfy the applicable rule of origin under General Note 12 to the HTSUS.

LAW AND ANALYSIS:

Classification of the Merchandise

Merchandise imported into the United States is classified under the HTSUS. The tariff classification of merchandise under the HTSUS is governed by the principles set forth in the General Rules of Interpretation (GRIs) and, in the absence of special language or context which otherwise requires, by the Additional U.S. Rules of Interpretation. The GRIs and the Additional U.S. Rules of Interpretation are part of the HTSUS and are to be considered statutory provisions of law for all purposes. See Sections 1204(a) and 1204(c) of the Omnibus Trade and Competitiveness Act of 1988 (19 U.S.C. § 1204(a), 1204(c)).

GRI 1 requires that classification be determined first according to the terms of the headings of the tariff schedule (i.e., (1) merchandise is to be classified under the 4-digit heading that most specifically describes the merchandise; (2) only 4-digit headings are comparable; and (3) merchandise must first satisfy the provisions of a 4-digit heading before consideration is given to classification under a subheading within this 4-digit heading) and any relative section or chapter notes and, provided such headings or notes do not otherwise require, then according to the other GRIs.

GRI 6 prescribes that, for legal purposes, GRIs 1 to 5 shall govern, mutatis mutandis, classification at subheading levels within the same heading. Therefore, merchandise is to be classified at equal subheading levels (i.e., at the same digit level) within the same 4-digit heading under the subheading that most specifically describes or identifies the merchandise.

Classification of Hockey Jerseys:

Heading 6110 provides for sweaters, pullovers, sweatshirts, waistcoats (vests) and similar articles, knitted or crocheted.

Pursuant to GRI 1, the hockey jerseys are classified in heading 6110. Within heading 6110, subheading 6110.30 provides for sweaters, pullovers, sweatshirts, waistcoats (vests) and similar articles, knitted or crocheted or man-made fibers. Pursuant to GRI 1 and 6, the hockey jerseys are classified in subheading 6110.30 (2000 edition of HTSUS).

Classification of Non-Originating Fabrics:

Heading 6001 provides for pile fabrics, including “long pile” fabrics and terry fabrics, knitted or crocheted and heading 6002 provides for other knitted or crocheted fabrics.

Pursuant to GRI 1, and based on the samples submitted, the above-mentioned non-originating fabric is classified in heading 6002. Pursuant to GRIs 1 and 6, and based on the samples submitted, the fabric is classified in subheading 6002.43 (2000 edition of HTSUS).

Preferential Treatment Under General Note 12

In order to be eligible for preferential tariff treatment under General Note 12 to the HTSUS, a good must satisfy one of the following rules:

(b) 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; or

(iv) they are produced entirely in the territory of Canada, Mexico and/or the United States but one or more of the non-originating materials falling under provisions for "parts" and used in the production of such goods does not undergo a change in tariff classification because

(A) the goods were imported into the territory of Canada, Mexico and/or the United States in unassembled or disassembled form but were classified as assembled goods pursuant to general rule of interpretation 2(a), or

(B) the tariff headings for such goods provide for and specifically describe both the goods themselves and their parts and is not further divided into subheadings, or the subheadings for such goods provide for and specifically describe both the goods themselves and their parts,
provided that such goods do not fall under chapters 61 through 63, inclusive, of the tariff schedule, and provided further that the regional value content of such goods, determined in accordance with subdivision (c) of this note, is not less than 60 percent where the transaction value method is used, or is not less than 50 percent where the net cost method is used, and such goods satisfy all other applicable provisions of this note. For purposes of this note, the term "material" means a good that is used in the production of another good, and includes a part or an ingredient.

General Note 12(b) to the HTSUS (2000).

In the instant case, in order for the hockey jerseys to be eligible for preferential tariff treatment under General Note 12 by application of the tariff-shift rule for heading 6110, each of the non-originating materials used in the production of the good must undergo the required change in tariff classification. See HTSUS General Note 12 (b)(I)(A). The rule for heading 6110 provides as follows:

A change to headings 6109 through 6111 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 or 6001 through 6002, provided that the good is both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or more of the NAFTA parties.

GN 12(t)/61.35 to the HTSUS (2000).

Chapter Rule 2 to Chapter 61 to General Note 12 states as follows:

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.

Chapter Rule 2 to Chapter 61 to General Note 12 to the HTSUS (2000)

In the instant case, as indicated above, each of the above-mentioned hockey jerseys is classified by application of GRI 1 in heading 6110. Therefore, there is no need to employ an essential character analysis to classify the jerseys. Accordingly, the above-mentioned chapter rule 2 has no application in the instant case.

As discussed above, in order for the hockey jerseys to be eligible for preferential tariff treatment under General Note 12 by application of the tariff-shift rule for heading 6110, each of the non-originating materials used in the production of the good must undergo the required change in tariff classification. Upon review, one finds that the non-originating fabric in each jersey does not satisfy the required change in tariff classification because the non-originating fabric comes from an excepted heading, i.e., 6002.

In light of the above, the hockey jerseys are not eligible for preferential tariff treatment under HTSUS General Note 12 insofar as they do not satisfy the tariff-shift rule for heading 6110 (GN 12(t)/61.35 to the HTSUS (2000)).

HOLDING:

The above-mentioned hockey jerseys are not eligible to receive preferential tariff treatment under HTSUS General Note 12.

This internal advice should be mailed by your office to the requester no later than sixty days from the date of this letter. Sixty days from the date of this letter, the Office of Regulations and Rulings will take steps to make this decision available to Customs Service personnel and to the public on the Customs Service’s home page on the World Wide Web at , and by means of the Freedom of Information Act as well as by other means of public distribution.

Sincerely,

Myles Harmon, Acting Director
Commercial Rulings Division

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