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 966496 - HQ 966648 > HQ 966514

Previous Ruling Next Ruling
HQ 966514




September 5, 2003

CLA-2: RR:CR:TE 966514 ASM

CATEGORY: CLASSIFICATION

TARIFF NO.: 9819.11.12

David S. Levy
Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP 245 Park Avenue
33rd Floor
New York, NY 10167-3397

RE: African Growth and Opportunity Act; subheading 9819.11.12; foreign-origin elastic fabric waistband

Dear Mr. Levy:

This is in response to your request on behalf of your client, Kids International Corp., dated June 2, 2003, requesting a binding ruling on the eligibility of certain girls’ shorts for duty-free treatment under the African Growth and Opportunity Act (“AGOA”). Samples have been provided with the request.

FACTS:

The subject garments are girls’ shorts that will be cut, sewn and wholly assembled in Swaziland, using fabric originating in Taiwan. The sample girl’s shorts feature a woven elastic fabric waistband measuring approximately 3.175 cm (1.25 inch) in width and having a decorative bow sewn to the front center of the waistband. The bow is approximately 12.7 cm (5 inches) in length and is formed from a fabric cord. The elastic fabric used to construct these waistbands will be imported from Taiwan into Swaziland in rolls where it will be cut and assembled into the waistband. The sample bears a label identifying the fabric as 100 percent cotton. The exterior panels of the shorts are knit fabric of open mesh construction with small pinpoint holes running at regular intervals throughout the fabric. The shorts have an interior lining and turned hem with visible stitching on the exterior.

ISSUE:

Whether the girls’ shorts, when manufactured as described above, are eligible for duty-free treatment under the AGOA.

LAW AND ANALYSIS:

The African Growth and Opportunity Act (AGOA) provides certain specified trade benefits for countries of sub-Saharan Africa. These benefits include duty-free treatment for certain non-textile articles previously excluded from preferential treatment under the Generalized System of Preferences, and duty- and quota-free treatment for certain textile and apparel articles which meet the requirements set forth in Section 112 of the Act (codified at 19 U.S.C. 3721). Beneficiary countries are designated by the President of the United States after having met eligibility requirements set forth in the AGOA. Once designated, a beneficiary country is entitled to the duty-free treatment for the designated non-textile articles determined not to be import-sensitive in the context of imports from the beneficiary sub-Saharan African countries. A second designation by the United States Trade Representative (USTR), published in the Federal Register, that a beneficiary country has taken the measures required by the Act to prevent unlawful transshipment and has adopted an effective visa system, is necessary before a beneficiary country may enjoy the duty-and quota-free benefits extended to textile and apparel articles under the Act. Swaziland was designated a beneficiary country by Presidential Proclamation 7400, published in the Federal Register on January 23, 2001 (66 Fed. Reg. 7373). It was determined to be eligible for textile benefits under the AGOA by the USTR effective July 26, 2001. See 66 Fed. Reg. 41648, dated August 8, 2001.

The provisions implementing the textile provisions of the AGOA in the Harmonized Tariff Schedule of the United States (HTSUS) are contained, for the most part, in Subchapter XIX, Chapter 98, HTSUS (one provision may be found in subheading 9802l.00.80, HTSUS). The regulations pertinent to the textile provisions of the AGOA may be found at Sections 10.211 through 10.217 of the Customs Regulations (19 CFR 10.211 through 10.217).

Subheading 9819.11.12, HTSUS, provides, in relevant part, as follows:

Articles imported from a designated beneficiary sub-Saharan African country enumerated in U.S. note 1 to this subchapter:

Apparel articles wholly assembled in one or more such 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

Swaziland is designated as a beneficiary sub-Saharan African country under AGOA pursuant to U.S. Note 1, Subchapter XIX, HTSUS. Swaziland is also designated as a lesser developed beneficiary country as provided for in U.S. Note 2(d), Subchapter XIX, Chapter 98, HTSUS. U.S. Note 2, Subchapter XIX, Chapter 98, HTSUS, provides for a quantitative restriction for apparel articles classified in subheading 9819.11.12.

Findings and trimmings are defined in U.S. Note 3(b), Subchapter XIX, Chapter 98, HTSUS, to include elastic strips “only if they are each less than 2.54 cm in width and used in the production of brassieres” (2.54 cm is equivalent to 1inch). Accordingly, the elastic waistband is not considered a finding and trimming because it is 3.175 cm (1.25 inch) in width.

It is important to note, however, that when determining eligibility under the AGOA, the decorative bow appearing on the front of the waistband would be considered a “trimming” if it is imported into Swaziland as a pre-formed bow. Accordingly, Subchapter XIX, U.S. Note 3(a), HTSUSA, provides:

An Article Otherwise eligible for preferential treatment under any provision of this subchapter shall not be ineligible for such treatment because the article contains –
findings or trimmings of foreign origin, if the value of such findings and trimmings does not exceed 25 percent of the cost of the components of the assembled article;

In this case, the decorative bow is only 12.7 cm (5 inches) in length and represents less then 25 percent of the cost of the components of the assembled article. Such a trimming would not render the garment ineligible for preferential treatment under the AGOA.

Section 10.213(a)(5), Customs Regulations (19 CFR 10.213(a)(5)), states that preferential tariff treatment applies to textile and apparel articles that are imported directly into the customs territory of the United States from a beneficiary country and “wholly assembled . . . in one or more lesser developed beneficiary countries regardless of the country of origin of the fabric or the yarn used to make the articles.”

Since Section 10.213(a)(5), by express language, states that the use of foreign-origin fabric would not render an article ineligible for AGOA treatment under this provision, the use of foreign-origin elastic fabric imported in rolls used to make the waistband would not render the girls’ shorts ineligible for classification in subheading 9819.11.12, HTSUS.

In view of the foregoing, the girls’ shorts would be classified in subheading 9819.11.12, HTSUS, subject to the quantitative limits set forth in U.S. Note 2, Subchapter XIX, Chapter 98, HTSUS. This classification is consistent with our decisions in HQ 562451, dated September 4, 2002, and HQ 562766, dated August 6, 2003, wherein women’s trousers constructed with foreign origin elastic fabric waistbands were deemed eligible for duty free treatment under subheading 9819.11.12, HTSUS.

HOLDING:

Based on the information provided, the girls’ shorts are eligible for duty free treatment under subheading 9819.11.12, HTSUS, subject to the quantitative limitations set forth in U.S. Note 2, Subchapter XIX, Chapter 98, HTSUS, and assuming that the garments are imported from a designated beneficiary country directly into the customs territory of the United States.

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

Previous Ruling Next Ruling

See also: