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NY M86391




September 29, 2006

CLA-2-61:RR:NC:TA:N3:356 M86391

CATEGORY: CLASSIFICATION

TARIFF NO.: 6109.10.0004; 6109.10.0012

Mr. Francisco Gomez Jr.
R. L. Jones Customhouse Brokers
476 & 484 Tecate Road
P.O. Box 970
Tecate, CA 91980

RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA) of men’s knit T-shirts from Mexico; Article 509; applicability of 9802.00.90, HTSUS.

Dear Mr. Gomez:

In your letter dated August 18, 2006, you requested a ruling on behalf of A & G, Inc., on the status of T-shirts from Mexico under the North American Free Trade Agreement (NAFTA) and the applicability of 9802.00.9000, HTSUS to this merchandise. As requested, your sample will be returned.

The submitted garment is a men’s all white T-shirt constructed from 100% cotton, light weight, jersey knit fabric. The garment features a rib knit crew neckline, short hemmed sleeves, and a straight hemmed bottom.

You state that U. S. grown, 100% cotton fibers will be shipped as raw cotton to India where it will be spun into yarn with a count of 30/1, combed and waxed. The yarn number is 50.80 metric number. The yarn will then be exported to the United States where it will be knit into 100% cotton, circular knit jersey fabric. The fabric will be dyed and/or bleached in the United States.

Two manufacturing scenarios for the T-shirts are presented:

In Scenario 1, the knit fabric will be exported to Mexico in rolls where it will be cut into T-shirt components, sewn and assembled into finished garments. The finished garments will then be imported into the United States. You ask whether NAFTA preferential treatment applies to the finished T-shirts.

In Scenario 2, the knit fabric will be cut into component T-shirt parts in the United States, ready for assembly. 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. You ask whether HTSUS 9802.00.90 applies to these garments.

The applicable subheading for the submitted all white T-shirt will be 6109.10.0004, Harmonized Tariff Schedule of the United States (HTSUS), which provides for: T-shirts, singlets, tank tops and similar garments, knitted or crocheted: of cotton: men’s or boys’: T-shirts, all white, short, hemmed sleeves, crew or round neckline, or V-neck, with a mitered seam at the center of the V, without pockets, trim or embroidery. The duty rate is 16.5% ad valorem.

The applicable subheading for the dyed T-shirts will be 6109.10.0012, Harmonized Tariff Schedule of the United States (HTSUS), which provides for: T-shirts, singlets, tank tops and similar garments, knitted or crocheted: of cotton: men’s or boys’: other T-shirts: men’s. The duty rate is 16.5% 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/.

The all white T-shirts fall within textile category designation 352. The dyed T-shirts fall within textile category designation 338.

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.

For Scenario 1, 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 yarn used in the production of the goods will not undergo the change in tariff classification required by General Note 12(t)/61.35, HTSUS.

Tariff Preference Levels (TPL) as defined in the HTSUS, Section XI, Additional U.S. note 3(b) do not apply because Section XI, Additional U.S. Note 3(d) (ii) excludes T-shirts constructed from circular knit fabric with a yarn number less than 100 metric number.

HTSUS 9802.00.90 provides for: Textile and apparel goods assembled in Mexico in which all fabric components were wholly formed and cut in the United States, provided that such fabric components, in whole or in part, (a) were exported in condition ready for assembly without further fabrication, (b) have not lost their physical identity in such articles by change in form, shape or otherwise, and (c) have not been advanced in value or improved in condition abroad except by being assembled and except by operations incidental to the assembly process; provided that goods classifiable in chapters 61, 62 or 63 may have been subject to bleaching, garment dyeing, stone-washing, acid-washing or perma-pressing after assembly as provided for herein.

For Scenario 2, the assembly in Mexico of the aforementioned ready to assemble components, cut in the United States, may entitle the garments to be entered under subheading 9802.00.9000, HTSUS, provided that all the documentary requirements are met. The information substantiating 9802.00.9000, HTSUS, must be submitted at the time of entry.

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
Director,
National Commodity

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