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HQ 966120




March 14, 2003

CLA-2 RR:CR:TE 966120 ttd

CATEGORY: CLASSIFICATION

TARIFF NO.: 9821.11.25

John Imbrogulio
Customs Compliance Department
Nordstrom, Inc.
1617 Sixth Ave., Suite 1000
Seattle, WA 98101-1742

RE: Andean Trade Promotion and Drug Eradication Act; Men’s Knit Pullover

Dear Mr. Imbrogulio:

This is in response to your letter of November 22, 2002, requesting a binding ruling on the classification and eligibility of a men’s knit pullover for preferential treatment under the Andean Trade Promotion and Drug Eradication Act (“ATPDEA”). A sample was submitted.

FACTS:

The item under consideration is a men’s knit pullover, identified as style number IS35108. The garment is comprised of 85 percent cotton and 15 percent silk. The garment features long sleeves and a ribbed knit bottom, cuffs, and neckline. The fabric from which the garment is made measures 15 stitches per inch vertically and horizontally.

The garment will be made in Peru by mixing the cotton and silk fibers at the carding process, before the yarn is spun. This process consists of blending the fibers, carding and combing into top. The tops are then spun into yarn, which is used to knit panels and ribbed knit edging material. The panels and ribbed knit edging are then linked or sewn to make the pullover. All of the processes described are performed in Peru. The cotton fibers are from Peru and the silk fibers are from the People’s Republic of China. The garment will be imported directly into the United States from Peru.

ISSUE:

Whether the subject men’s knit pullover is eligible for preferential treatment under the ATPDEA?

LAW AND ANALYSIS:

The Trade and Development Act of 2002 (“the Act”) was signed into law on August 6, 2002. Title XXXI of the Act concerns the renewal and expansion of the Andean Trade Preference Act (ATPA) and is entitled the “Andean Trade Promotion and Drug Eradication Act” (ATPDEA). The ATPDEA provides for the entry of specific textile and apparel articles free of duty and free of any quantitative restrictions, as well as other benefits to non-textile products. Presidential Proclamation 7616, dated October 31, 2002 and published in the Federal Register (67 FR 67283) on November 5, 2002, implemented the ATPDEA by designating the eligible beneficiary countries and amending Chapter 98, Harmonized Tariff Schedule of the United States (HTSUS) (including the creation of new subchapter XXI) to facilitate the entry of the specific textile and apparel articles eligible for preferential treatment under the ATPDEA.

Section 3103 of the Act (Pub. L. 107-210) outlines the treatment of certain textile and apparel articles under the ATPDEA. Wearing apparel articles that meet the specific production requirements set forth in the ATPDEA may enter into the customs territory of the United States free of duty and free of any quantitative restrictions, limitations, or consultation levels. Peru was designated as a beneficiary country under the ATPDEA by Presidential Proclamation 7616.

Garments meeting the description in subheading 9821.11.25, HTSUSA, are eligible for preferential treatment under the ATPDEA. This subheading provides as follows:

Articles imported from a designated ATPDEA beneficiary country enumerated in U.S. note 1(a) to this subchapter: Apparel articles sewn or otherwise assembled in one or more such countries from fabrics or from fabric components formed or from components knit-to-shape in one or more such countries, from yarns wholly formed in the United States or in one or more such countries (including fabrics not formed from yarns, if such fabrics are classifiable in heading 5602 or 5603 of the tariff schedule and are formed in one or more such countries); the foregoing apparel articles imported under the terms of U.S. note 3(d) and U.S. note 3(e) to this subchapter.

U.S. note 3(d) to subchapter XXI, Chapter 98, HTSUS, provides that the duty-free treatment afforded to goods under subheading 9821.11.25 is limited to specific aggregate quantities for certain time periods as set forth therein. In addition, U.S. note 3(e) provides the following:

For purposes of subheading 9821.11.25, duty-free treatment shall be afforded to goods imported under such subheading whether or not the apparel articles are also made from any of the fabrics, fabric components formed or components knit-to-shape described in subheadings 9821.11.01 through 9821.11.10, inclusive, unless such articles are made exclusively from any of the fabrics, fabric components formed or components knit-to-shape described in such subheadings.

Interim regulations applicable to the ATPDEA will be published in the near future. In the absence of such regulations, we look to the definitions provided for similarly structured programs, such as the African Growth and Opportunity Act (AGOA) and the Caribbean Basin Trade Partnership Act (CBTPA), for guidance. The AGOA defines "wholly formed" as set forth in 19 CFR 10.212 as follows:

"Wholly formed," when used with reference to yarns or thread, means that all of the production processes, starting with the extrusion of filament or the spinning of all fibers into yarn or both and ending with a yarn or plied yarn, took place in a single country, . . .

In this situation, the Peruvian cotton fibers and Chinese silk fibers are blended and spun into yarn in Peru. The yarn is then knit into panels and ribbed knit edging in Peru. The garment is then assembled in Peru (a designated ATPDEA beneficiary country) from fabric components formed in Peru, from yarns wholly formed in Peru. Therefore, the garment is eligible for duty free treatment under subheading 9821.11.25, HTSUSA.

HOLDING:

Provided the subject garment is manufactured as described above, it is eligible for duty free treatment under the provisions of the ATPDEA, provided the apparel articles are imported directly into the customs territory of the U.S. from an ATPDEA beneficiary country and the apparel article meets the remaining requirements of the relevant ATPDEA provisions.

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 B. Harmon, Director
Commercial Rulings Division

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