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NY M85941




September 20, 2006

CLA-2-62:RR:NC:WA:359 NY M85941

CATEGORY: CLASSIFICATION

TARIFF NO. 6110.30.3059

Mr. Seung Hwan Oh
Sae-A Trading Co., Ltd.
Sae-A Venture Tower 8th Floor
Daechidong, Gangnamgu
Seoul, Korea 135-846

RE: The tariff classification and status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA), of a woman’s pullover from Guatemala.

Dear Mr. Oh:

In your letter received on August 28, 2006, you requested a ruling on the classification and status of a woman’s pullover from Guatemala under DR-CAFTA.

The submitted garment is a pullover, style 1884, constructed from 93 percent rayon, 7 percent spandex knit fabric with trim constructed from 90 percent nylon, and 10 percent spandex raschel knit fabric. The pullover has a draped front neckline, ¾ length sleeves, and a hemmed bottom. The 5-1/2 inch raschel knit fabric forms an interior band across the front upper panel of the garment and is visible at the neckline when the garment is worn.

You have described the manufacturing process as follows:

Fabric for the main body of the garment will be knit and finished in Guatemala from US origin yarns. Raschel knit fabric will be knit, dyed and finished in Korea from Korean Nylon/spandex yarns. The fabric will be imported directly into Guatemala in continuous length. Fabric will be cut and sewn in Guatemala, using sewing thread originating in Guatemala.

The applicable tariff provision for the pullover will be 6110.30.3059, Harmonized Tariff Schedule of the United States (HTSUS), which provides for sweaters, pulloversand similar articles, knitted or crocheted: Of man-made fibers: Other: Other: Other: Other: Other: Women’s or girls’: Other. The general rate of duty will be 32 percent.

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/.

The pullover falls within textile category 639. With the exception of certain products of China, quota/visa requirements are no longer applicable for merchandise that is the product of World Trade Organization (WTO) member countries.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 29(b), HTSUS, sets forth the criteria for determining whether a good is originating under DR-CAFTA. General Note 29(b), HTSUS, (19 U.S.C. § 1202) states, in pertinent part, that

For the purposes of this note, subject to the provisions of subdivisions (c), (d), (m) and (n) thereof, a good imported into the customs territory of the United States is eligible for treatment as an originating good under the terms of this note if--

(i) the good is a good wholly obtained or produced entirely in the territory of one or more of the parties to the agreement;

(ii) the good was produced entirely in the territory of one or more of the parties to the agreement, and--

(A) each of the non-originating materials used in the production of the good undergoes an applicable change in tariff classification specified in subdivision (n) of this note; or

(B) the good otherwise satisfies any applicable regional value content or other requirements specified in subdivision (n) of this note;
and the good satisfies all other applicable requirements of this note; or

(iii) the good was produced entirely in the territory of one or more of the parties to the Agreement exclusively from originating materials.

The merchandise does not qualify for preferential treatment under DR-CAFTA because (a) it will not be wholly obtained or produced entirely in the territory of one or more DR-CAFTA countries; (b) one or more of the non-originating materials used in the production of the goods will not undergo the change in tariff classification required by General Note 29(n)/62.29, HTSUS; and (c) it will not be produced entirely in the territory of one or more of the DR-CAFTA parties exclusively from originating materials.

You asked specifically, whether the garment meets the requirements of General Note 29(n), Chapter 61, notes 2 and 3, and whether the raschel knit fabric would be considered a finding or trimming. Chapter 61, notes 2 and 3 enumerate the following requirements:

Chapter rule 2:
For purposes of determining whether a good of this chapter is originating, the rule applicable to that good shall only apply to the component that determines the tariff classification of the good and such component must satisfy the tariff change requirements set out in the rule for that good. If the rule requires that the good must also satisfy the tariff change requirements for visible lining fabrics listed in chapter rule 1 to this chapter, such requirement shall only apply to the visible lining fabric in the main body of the garment, excluding sleeves, which covers the largest surface area, and shall not apply to removable linings.

Chapter rule 3:
Notwithstanding chapter rule 2 to this chapter, a good of this chapter containing fabrics of subheading 5806.20 or heading 6002 shall be considered originating only if such fabrics are both formed from yarn and finished in the territory of one or more of the parties to the Agreement.

The raschel fabric is classified in heading 6002 as a narrow knitted fabric containing 5% or more elastomeric yarns. Chapter note 3 does not require that this fabric provide the essential character, but that the garment “contains” this fabric. Because the garment “contains” fabric of heading 6002, it does not meet the tariff change requirements.

You also asked whether the raschel fabric would be considered a finding or trimming under the DR-CAFTA. Under the agreement, there is no finding or trimming rule.

Therefore, as noted above, because of the raschel knit fabric, the garment does not qualify for preferential treatment under the DR-CAFTA rules.

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 Camille Ferraro at 646-733-3049.

Should you wish to request an administrative review of this ruling, submit a copy of this ruling and all relevant facts and arguments within 30 days of the date of this letter, to the Director, Commercial Rulings Division, Headquarters, U.S. Customs and Border Protection, 1300 Pennsylvania Ave. N.W., (Mint Annex), Washington, D.C. 20229.

Sincerely,

Robert B. Swierupski
Director,

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