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NY M85381




August 30, 2006

CLA-2-61:RR:NC:TA:N3:356 M85381

CATEGORY: CLASSIFICATION

TARIFF NO.: 6110.30.3053

Ms. Sandy Stubblefield
Augusta Sportswear
426 Park West Drive
Grovetown, GA 30813

RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of men’s and boy’s knit pullover garments from Mexico; Article 509.

Dear Ms. Stubblefield:

In your letter dated July 31, 2006, you requested a ruling on behalf of High Five Sportswear on the status of Style 201 from Mexico under the NAFTA. As requested, your sample will be returned.

Style 201 “Starter Jersey” is a pullover garment constructed from 100% polyester, finely knit jacquard fabric that measures 36 stitches per two centimeters measured in the horizontal direction. The garment will be imported in men’s sizes S-2XL and in boy’s (Youth) sizes S-L. Style 201 features a rib knit V-neckline; short, hemmed sleeves; and a straight, hemmed bottom.

Two manufacturing scenarios are presented. In Scenario 1, you state that you will purchase the knit fabric in Taiwan and ship the fabric to Mexico where it will be cut, sewn and assembled into finished garments. The finished garments will then be imported into the United States.

In Scenario 2, you state that you will purchase the knit fabric in Taiwan and ship the knit fabric to the United States. In the United States, the fabric will be cut into parts and the parts will be shipped to Mexico where they will be sewn and assembled into finished garments. The finished garments will then be imported into the United States.

The applicable subheading for Style 201 “Starter Jersey” will be 6110.30.3053, Harmonized Tariff Schedule of the United States, (HTS), which provides for: sweaters, pullovers, sweatshirts, waistcoats (vests) and similar articles, knitted or crocheted: of man-made fibers: other: other: other: other: men’s or boys’. The general rate of duty is 32% ad valorem.

Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at http://www.usitc.gov/tata/hts/.

Style 201 “Starter Jersey” falls within textile category designation 638. With the exception of certain products of China, quota/visa requirements are no longer applicable for merchandise which is the product of World Trade Organization (WTO) member countries. The textile category number above applies to merchandise produced in non-WTO member-countries. Quota and visa requirements are the result of international agreements that are subject to frequent renegotiations and changes. To obtain the most current information on quota and visa requirements applicable to this merchandise, we suggest you check, close to the time of shipment, the “Textile Status Report for Absolute Quotas” which is available on our web site at www.cbp.gov. For current information regarding possible textile safeguard actions on goods from China and related issues, we refer you to the web site of the Office of Textiles and Apparel of the Department of Commerce at otexa.ita.doc.gov.

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.

The merchandise does not qualify for preferential treatment under the NAFTA because none of the above requirements are met. It is noted that the non-originating fabric used in the production of the goods will not undergo the change in tariff classification required by General Note 12(t)/61.35, HTSUS.

As of January 1, 2005, there is only one Tariff Preference level (TPL) for goods from Mexico that do not originate under General Note 12(t), but are cut and sewn in Mexico. Therefore, there is no difference between the two scenarios noted in your request. Under both scenarios, the pullover may qualify for a preferential duty rate under the TPL defined in the HTSUS, Section XI, Additional U.S. note 3(b). Since the garments are both cut and sewn in the NAFTA territory, the pullover would qualify for the reduced rate up to the quantity specified in note 3(g)(i), provided the merchandise is accompanied by a Certificate of Eligibility. Under the TPL, the special rate of duty for Style 201 is free.

You have also asked for additional clarification of the treatment of the pullover under the two scenarios. First, as noted above, there is no difference in the duty rate or treatment under the TPL’s for the pullover under the two scenarios. (see HQ 967594 dated June 24,2005). If the TPL has reached its quantitative limit, the goods entered under either scenario will be liable to the general duty rate noted above. If the TPL has been reached, and the goods are not exported until after January 2007, the goods will be eligible for the TPL in that calendar year, depending upon the quantity remaining open. Finally, under both scenarios, the goods must be marked to indicate that they have been made in Mexico.

This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 C.F.R. 181) as well as Part 177 of the Customs Regulations (19 C.F.R. 177). Should it be subsequently determined that the information furnished is not complete and does not comply with 19 C.F.R.177.9 (b)(1), the ruling will be subject to modification or revocation. In the event there is a change in the facts previously furnished, this may affect the determination of country of origin. Accordingly, if there is any change in the facts submitted to Customs, it is requested that a new ruling request be submitted in accordance with 19 C.F.R. 177.2.

A copy of this ruling letter 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 this ruling, contact National Import Specialist Mary Ryan at 646-733-3271.

Sincerely,

Robert B. Swierupski

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