United States International Trade Commision Rulings And Harmonized Tariff Schedule
faqs.org  Rulings By Number  Rulings By Category  Tariff Numbers
faqs.org > Rulings and Tariffs Home > Rulings By Number > 2003 HQ Rulings > HQ 966022 - HQ 966105 > HQ 966060

Previous Ruling Next Ruling
HQ 966060





January 13, 2003

CLA-2 RR:CR:TE 966060 mbg

CATEGORY: CLASSIFICATION

TARIFF NO.: 6110.20.2075; 6110.30.3055

Ms. Marina Cheung
San Francisco Sales Inc.
385 8th Street
San Francisco, CA 94103

RE: African Growth and Opportunity Act; knit pullover sweaters

Dear Ms. Cheung:

This is in response to your letter of October 23, 2002, requesting a binding ruling on the eligibility of women’s pullover sweaters for preferential treatment under the African Growth and Opportunity Act (“AGOA”).

FACTS:

Samples of the subject women’s pullover sweaters were provided. Style M1060 is a woman’s pullover constructed from 100 percent cotton 2X2 ribbed knit fabric. The outer surface of the garment measures more than nine stitches per two centimeters in the horizontal direction. The garment features a round neckline and long sleeves. The garment is knit to shape and assembled in Madagascar from yarn originating in China.

Style 2029P is a woman’s pullover constructed from 100 percent acrylic knit fabric. The outer surface of the garment measures more than nine stitches per two centimeters in the horizontal direction. The garment features a round neckline, long hemmed sleeves, and a hemmed bottom. The garment is knit to shape and assembled in Madagascar from yarn originating in Taiwan.

The subject women’s pullover sweater designated as style M1060 will be classified in subheading 6110.20.2075, of the Harmonized Tariff Schedule of the United States Annotated (“HTSUSA”) which provides for “Sweaters, pullovers, sweatshirts, waistcoats (vests) and similar articles, knitted or crocheted: of cotton: other: other: other: women’s.”

The subject women’s pullover sweater designated as style 2029P will be classified in subheading 6110.30.3055, HTSUSA, which provides for “Sweaters, pullovers, sweatshirts, waistcoats (vests) and similar articles, knitted or crocheted: of man-made fibers: other: other: other: women’s.”

ISSUE:

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

LAW AND ANALYSIS:

The Trade and Development Act of 2000 (“the Act”) was signed into law on May 18, 2000 (Pub. L. 106-200, 114 Stat. 251). Title I of the Act concerns trade benefits for sub-Saharan Africa and is referred to as the African Growth and Opportunity Act (“AGOA”). Section 112 of the Act (codified at 19 U.S.C. 3721) specifies the textile and apparel articles that are eligible for duty-free and quota-free treatment when imported directly into the customs territory of the U.S. from a beneficiary sub-Saharan African country. Section 3108 of the Trade Act of 2002 (Pub. L. 107-210, 116 Stat. 933), enacted on August 6, 2002, amended the AGOA to modify the treatment accorded to textile and apparel articles imported from beneficiary sub-Saharan African countries.

Presidential Proclamation 7350 dated October 2, 2000, published in the Federal Register on October 4, 2000 (65 FR 59321), implemented the AGOA by designating the eligible beneficiary sub-Saharan African countries and amending Chapter 98, Harmonized Tariff Schedule of the U.S. (“HTSUS”) (including the creation of new subchapter XIX) to facilitate the entry of the specific textile and apparel articles eligible for preferential treatment under the 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. Madagascar was designated as a beneficiary sub-Saharan African country under AGOA by Presidential Proclamation. The USTR issued a determination finding that this sub-Saharan country 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 have implemented and follow, or are making substantial progress toward implementing and following, the customs procedures required by the AGOA, effective March 9, 2001, for Madagascar. See 66 Fed. Reg. 14242, dated March 9, 2001.

Subheading 9819.11.12, HTSUS, provides as follows:

Apparel articles wholly assembled or knit to shape and wholly assembled, or both, in one or more lesser developed countries enumerated in U.S. note 2(d) to this subchapter, subject to the provisions of U.S. note 2 to this subchapter, regardless of the country of origin of the fabric or the yarn used to make such articles, if entered during the period beginning on the date announced in a Federal Register notice issued by the United States Trade Representative and continuing through September 30, 2004, inclusive.

U.S. Note 2, Subchapter XIX, Chapter 98, HTSUS, provides for a quantitative restriction for apparel articles classified in subheading 9819.11.12.

In this case, the yarn is wholly formed in either China or Taiwan. The yarn is used to make a knit to shape garment in Madagascar where the looping, stitching, washing, ironing and packing will occur. Since Madagascar has been designated as a lesser developed beneficiary country, the yarn and fabric used in the manufacture of apparel can originate from any other country until the LDC status expires on September 30, 2004. See 65 Fed. Reg. 59321, dated October 2, 2000. Since the sweaters are constructed of cotton and acrylic yarns, the provisions for knit to shape sweaters in the AGOA are inapplicable; however, Madagascar is eligible to use yarn of foreign origin until the expiration of the LDC status and therefore the subject garments are eligible for AGOA preferential trade benefits.

You have also requested information regarding which documents are necessary for the subject merchandise to receive preferential treatment. The exporter in the beneficiary country or producer is required to prepare an AGOA Textile Certificate of Origin pursuant to 19 C.F.R. 10.214. (See attached sample of the Certificate of Origin and 19 C.F.R. 10.214). In addition, pursuant to 19 C.F.R. 10.215, the importer must make a written declaration that the article qualifies for preferential treatment. (See 19 C.F.R. 10.215).

HOLDING:

The subject women’s pullover sweaters, designated as Style M1060 and style 2029P, are eligible for preferential treatment under the AGOA and are appropriately entered under visa group 5 and preference group E.

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,

Myles Harmon, Acting Director
Commercial Rulings Division

Previous Ruling Next Ruling

See also: