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 > 2006 NY Rulings > NY M86040 - NY M86088 > NY M86058

Previous Ruling Next Ruling
NY M86058




September 14, 2006

CLA-2-42:RR:NC:3:353 M86058

CATEGORY: CLASSIFICATION

TARIFF NO.: 4203.30.0000

Mr. Joseph A. Acayan
Givens & Johnston PLLC
950 Echo Lane, Suite 360
Houston, TX 77024-2788

RE: The tariff classification and eligibility for preferential duty treatment under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA) for belts from Guatemala.

Dear Mr. Acayan:

In your letter dated August 14, 2006, on behalf of TATA, S.A., you requested a ruling on the tariff classification and eligibility for preferential duty treatment under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA) for belts.

The merchandise, belts, is constructed of either full grain leather or bonded leather. They are described as Feather Edge or Cut Edge Belts and have buckles.

Foreign full grain leather or bonded leather is imported into Guatemala. In Guatemala the leather is inspected for defects and cut into straps, which are ½ to 3 inches wide by 3 to 6 inches in length, by a water jet cutting machine and dyed. These straps can be further manufactured into a variety of items including belts, gun belts, animal collars and leashes, harnesses, handbag straps, luggage trim and reinforcement, musical instrument straps and wallets.

The straps are then made into men’s, women’s or children’s belts. Belt panels are cut size and glued together, the edges and tips are shaped, holes are punched, belt loops are added, the buckle is attached, sewing is performed when necessary and a plastic retail hanger is added. The dyes are from Guatemala and the thread from the USA. All the other material, the bonded filler, buckles, leather hides and plastic hangers originate in foreign countries other than DR-CAFTA countries.

The applicable subheading for the full grain leather and bonded leather belts will be 4203.30.0000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Articles of apparel and clothing accessories, of leather or composition leather: Belts and bandoliers with or without buckles.” The general rate of duty will be 2.7% 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/.

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.

For the non-originating materials, General Note 29(n) 42.12 requires “A change to subheadings 4203.30 through 4203.40 from any other heading.”

All of the non-originating materials used in the production of the good undergo an applicable change in tariff classification. The plastic hangers are packaging materials and are to be disregarded in determining whether there was a change in tariff classification per General Note 29(i).

The belts are produced in Guatemala. Effective July 1, 2006, Guatemala became eligible for DR-CAFTA benefits. The merchandise qualifies for preferential treatment under DR-CAFTA because it meets the requirements of General Note 29(n) and rule 42.12.

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 Kenneth Reidlinger at 646-733-3053.

Sincerely,

Robert B. Swierupski
Director,

Previous Ruling Next Ruling

See also: