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NY K87829




July 27, 2004

CLA-2-65:RR:NC:3:353 K87829

CATEGORY: CLASSIFICATION

TARIFF NO.: 6505.90.6090

Ms. Terry D. Liner:
Liner Services International, Inc.
PO Box 6386
Diamond Head, MS 39525

RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of headgear from Mexico; Article 509

Dear Ms. Liner:

In your letter dated July 7, 2004 you requested a ruling, on behalf of Third Associates, Inc., on the status of headgear from Mexico under the NAFTA. Electronic photographs of the item in question were furnished.

The item, called a Bandana Hat, is constructed of a crown of knit nylon/spandex mesh fabric in the shape of a bandana. There is a 2-inch wide headband secured to the bottom of the bandana that wraps around the head and ties in the back to secure the bandana to the head. The headband is constructed of either knit 100% polyester fabric or knit 100% cotton fabric. There will be a logo screen printed or embroidered on the front of the headband. The Bandana Hat is designed so that it can only be worn on the head.

The manufacturing process is as follows:

Scenario 1:

Korea or Brazil

Fabric for crown is formed

Mexico, Canada or United States

Fabric for the headband is formed

Mexico

Both fabrics are will be cut to shape
Headband will be screen printed or embroidered Cut-to-shape pieces will be assembled together

Scenario 2:

Korea or Brazil

Fabric for crown is formed

Mexico, Canada or United States

Fabric for the headband is formed

United States

Both fabrics are will be cut to shape

Mexico

Headband will be screen printed or embroidered Cut-to-shape pieces will be assembled together

The applicable tariff provision for the Bandana Hat will be 6505.90.6090, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for “Hats and other headgearOther: Of man-made fibers: Knitted or crocheted or made up from knitted or crocheted fabric: Not in part of braid, Other: Other: Other.” The general rate of duty will be 20 cents per kilogram plus 7% ad valorem.

General Note 12(b), HTSUS, sets forth the criteria for determining whether a good is originating under the NAFTA. General Note 12(b), HTSUS, (19 U.S.C. § 1202) states, in pertinent part, that

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 nonoriginating 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.

Based on the facts provided, the goods described above qualify for NAFTA preferential treatment, because they will meet the requirements of HTSUSA General Note 12(b)(ii)(A) and 12(t) 65.2. The goods will therefore be entitled to a Free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements.

With regards to your question on fabric, there is no NAFTA rule for chapter 65 that states that the change rule applies only to the component that determines the tariff classification of the good.

This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 C.F.R. 181).

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 Kenneth Reidlinger at 646-733-3053.

Sincerely,

Robert B. Swierupski
Director,

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