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 M86244 - NY M86317 > NY M86304

Previous Ruling Next Ruling
NY M86304




September 29, 2006

CLA-2-65:RR:NC:3:353 M86304

CATEGORY: CLASSIFICATION

TARIFF NO.: 6505.90.9045, 6117.80.8500, 6117.10.1000

Ms. Bonnie Reeves
‘nVogue Alpaca Wear Limited
246 Taranaki Drive
Dartmouth, NS
Canada B2W 4X7

RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of a hat, headband and scarf from Canada; Article 509

Dear Ms. Reeves:

In your letter received in this office on September 6, 2006, you requested a ruling on the status of a hat, headband and scarf from Canada under the NAFTA. For your information attached are instructions for utilizing the Binding Rulings Program.

The submitted samples are a hat, headband and scarf constructed of knit 82% alpaca and 18% polyamide. The hat is toque-style. The headband is approximately 3½ inches wide. The scarf measures approximately 8 inches by 66 inches.

The manufacturing operation is as follows. The 82% alpaca and 18% polyamide fine animal hair yarn is imported from Peru into Canada. In Canada:

The hat is knit and sewn down the back. A care and content label is sewn into this seam. The hat is gathered and sewn at the top and the brim is tacked into place. The headband is knit and sewn down the long side to make a tube. The tube is sewn together to form the headband. A care and content label is sewn into this seam. The scarf is knit and a care and content label is sewn onto the bottom edge. The items are then boxed.

The applicable tariff provision for the hat will be 6505.90.9045, Harmonized Tariff Schedule of the United States (HTSUS), which provides for hats and other headgear, knitted or crochetedother: other, other: of fine animal hair." The general rate of duty will be 20.7 cents per kilogram plus 7.5 percent ad valorem.

The applicable tariff provision for the headband will be 6117.80.8500, Harmonized Tariff Schedule of the United States (HTSUS), which provides for other made up accessories, knitted or crocheted; knitted or crocheted parts of garments or of clothing accessories: other accessories: other: headbands, ponytail holders and similar articles. The general rate of duty will be 14.6 percent ad valorem.

The applicable tariff provision for the scarf will be 6117.10.1000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for other made up clothing or accessories, knitted or crocheted; knitted or crocheted parts of garments or clothing accessories: shawls, scarves, mufflers, mantillas, veils and the like: of wool or fine animal hair. The general rate of duty will be 9.6 percent 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 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 hat described above qualifies for NAFTA preferential treatment, because it will meet the requirements of HTSUS General Note 12(b)(ii)(A) and 12(t) 65.2. The hat will therefore be entitled to a Free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements.

The non-originating alpaca/polyamide yarn is classified in heading 5108 or 5109. The headband and scarf do not meet the requirements of Note 12(t) 61.39 and the merchandise does not qualify for preferential treatment under the NAFTA.

In addition, the headband and scarf are not subject to a reduced rate of duty based upon the Tariff Preference Levels (TPL) established in Section XI, Additional U.S. Note 3(a) and 3(f), as there are no annual quantities specified for apparel goods of fine animal hair.

As requested by telephone, the samples are being returned to you.

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.

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,

Previous Ruling Next Ruling

See also: