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NY K81703




January 20, 2004
CLA-2-64:RR:NC:247: K81703

CATEGORY: CLASSIFICATION

TARIFF NO.: 6402.99.18, 6402.99.30, 6404.19.35, 6404.19.90

Ms. Nancy Dong
Shoes With Soles
728 Elm Street, #205
San Carlos, CA 94070

RE: The tariff classification of footwear from Colombia

Dear Ms. Dong:

In your letter dated January 7, 2004, you requested a tariff classification ruling for six shoe samples. You also inquired whether the footwear would benefit from the Andean Free Trade Agreement.

You describe the soles as 100 percent natural rubber and the uppers as 100 percent microfiber, a blend of polyester and polyurethane. In a telephone conversation on January 13, 2004 with National Import Specialist Richard Foley, you advised that the microfiber upper material is manufactured in Italy and sent to Colombia in sheets or rolls. The Italian material is cut into footwear upper parts in Colombia and combined with Colombian components to produce the finished footwear. Certain styles have an external layer of plastics applied to the microfibers to simulate the look and feel of natural leather. You have provided cost breakdown figures indicating that more than 35 percent of the value of the shoes is of Colombian origin.

You identify the samples as:

1. SO4SJW03, beige women’s slip-on mule 2. SO4SJW01, olive women’s Mary Jane
3. SO4SJW02, green women’s slip-on loafer 4. SO4SJM02, olive men’s slip-on loafer 5. SO4SJM01A, beige men’s lace-up chukka low boot 6. SO4SJM01, brown men’s lace-up chukka low boot

Style SO4JW03 is a women’s open heel, slip-on shoe with an outer sole of rubber or plastics and an upper of textile material.

Style SO4JW01 is a women’s shoe secured by a hook & loop strap closure. The outer sole is rubber or plastics and the upper is textile material.

Style SO4SJW02 is a women’s slip-on shoe with an outer sole and upper predominantly of rubber or plastics. The heel portion of the upper features a “kiltie” of textile material. The textile “kiltie” heel portion of the upper accounts for more than 10 percent of the external surface area of the upper including accessories or reinforcements.

Style SO4SJM02 is a man’s slip-on shoe with an outer sole of rubber or plastics and an upper of textile material.

Style SO4SJM01A is a man’s lace-up shoe with an outer sole of rubber or plastics and an upper of textile material.

Style SO4JSM01 is a man’s lace-up shoe with an outer sole and upper predominantly of rubber or plastics. The heel portion of the upper features a “kiltie” of textile material. Unlike the “kiltie” on style SO4SJW02, the “kiltie” on this style does not account for 10 percent of the external surface area of the upper including accessories or reinforcements.

The Trade and Development Act of 2002 ("the Act"), was signed into law on August 6, 2002 (Pub.L. 107-210, 116 Stat. 933). Title XXXI of the Act concerns the renewal and expansion of the Andean Trade Preference Act ("ATPA") and is entitled the "Andean Trade and Promotion Drug Eradication Act" ("ATPDEA"). The ATPDEA immediately restored duty-free trade treatment to articles that had been eligible for ATPA benefits prior to the program's expiration on December 4, 2001. The ATPDEA amends the ATPA, which is codified at 19 U.S.C. 3201 through 3206, to provide additional trade benefits to designated beneficiary countries. The amendment provides preferential tariff treatment for textile and apparel articles, as well as for certain non-textile goods previously excluded from ATPA eligibility. The expanded benefits require a presidential determination concerning the eligibility of products and countries.

Presidential Proclamation 7616 dated October 31, 2002 designated Colombia as an ATPDEA beneficiary country pursuant to Section 204(b)(6)(B) of the ATPA as amended. In addition, footwear not designated as of August 6, 2002 as eligible for purposes of the U.S. Generalized System of Preferences under title V of the Trade Act of 1974, that is the growth, product or manufacture of a beneficiary country for purposes of the ATPA, imported directly into the customs territory of the United States from a designated ATPDEA beneficiary country and that satisfies the customs requirements of the ATPDEA may be entered duty-free provided that such goods shall be designated in the “Special” subcolumn of the Harmonized Tariff Schedule of the United States (HTS) following the rate of duty of Free by the symbol “J+” in parentheses.

The ATPDEA renewed all existing provisions under the ATPA. The relevant provision of the ATPA, codified at 19 U.S.C. 3203(a)(1), for eligible articles provides:

(a) In general.

(1) Unless otherwise excluded from eligibility (or otherwise provided for) by this title, the duty-free treatment (or preferential treatment) provided under this title shall apply to any article which is the growth, product, or manufacture of a beneficiary country if -

(A) that article is imported directly from a beneficiary country into the customs territory of the United States; and

(B) the sum of -

(i) the cost or value of the materials produced in a beneficiary country or 2 or more beneficiary countries under this Act, or a beneficiary country under the Caribbean Basin Economic Recovery Act or 2 or more such countries, plus

(ii) the direct costs of processing operations performed in a beneficiary country or countries (under this Act or the Caribbean Basin Economic Recovery Act), is not less than 35 percent of the appraised value of such article at the time it is entered.

The applicable subheading for footwear styles SO4SJW03 and SO4SJM02 will be 6404.19.35, (HTS), which provides for footwear with outer soles of rubber/plastics and uppers of textile material, other, other, footwear of the slip-on type. The general rate of duty will be 37.5 percent ad valorem. The “Special” “J+” rate of duty is Free.

The applicable subheading for footwear styles SO4SJW01 and SO4SJM01A will be 6404.19.90, (HTS), which provides for footwear with outer soles of rubber/plastics and uppers of textile material, other, other, valued over $12/pair. The general rate of duty is 9 percent ad valorem. The “Special” “J+” rate of duty is Free.

The applicable subheading for style SO4SJW02 will be 6402.99.30, (HTS), which provides for footwear with outer soles and uppers of rubber or plastics, other, footwear of the slip-on type. The general rate of duty will be 37.5 percent ad valorem. The “Special” “J+” rate of duty is Free.

The applicable subheading for style SO4SJM01 will be 6402.99.18 (HTS), which provides for footwear with outer soles and uppers of rubber or plastics, other, having uppers of which over 90 percent of the external surface area including accessories or reinforcements is rubber/plastics, other. The general rate of duty will be 6 percent ad valorem. The “Special” “J+” rate of duty is Free.

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

The submitted samples are not marked with the country of origin. Therefore, if imported as is, will not meet the country of origin marking requirements of 19 U.S.C. 1304. Accordingly, the footwear would be considered not legally marked under the provisions of 19 C.F.R. 134.11 which states, "every article of foreign origin (or its container) imported into the U.S. shall be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article (or container) will permit, in such manner as to indicate to the ultimate purchaser in the U.S. the English name of the country of origin of the article."

This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).

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, Richard Foley at 646-733-3042.

Sincerely,

Robert B. Swierupski
Director,

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