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NY N006174




February 27, 2007

CLA-2-64:RR:NC:SP:247

CATEGORY: CLASSIFICATION

TARIFF NO.: 6404.19.9090
Ms. Linda M. Rasco
Metro Customs Brokers
P.O. Box 1066
40 Miramar Drive, Ste 12
Champlain, NY 12919

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

Dear Ms. Rasco:

In your letter dated January 30, 2007, on behalf of Stonz Wear Inc., you requested a ruling on the status of footwear from Canada under the NAFTA.

The submitted sample is described by you as a textile fleece lined, nylon textile material upper “baby bootie” with a sewn-on soft, waterproof PVC plastic coated polyester sole designed specially “to be easy to put on, stay on and keep babies feet warm and dry.” The “Stonz” baby bootie, which has the shape of a tubular bag, can be a tightened for fit around the shape of an infant’s foot by two elasticized cords with plastic cordlocks, one attached to the side of the upper at ankle height and the other laced around the boot’s open topline. The “bootie” does not have any special padding or foam insulation, other than a thin man-made textile fleece lining, nor is it waterproof, so it will not be considered protective against water, or cold or inclement weather. You state that the footwear will be valued at over $12 per pair.

The applicable tariff provision for the “Stonz” baby bootie will be 6404.19.9090, Harmonized Tariff Schedule of the United States (HTSUS), which provides for footwear, in which the upper’s external surface is predominately textile materials; in which the outer soles external surface is predominately rubber and/or plastics; which is not “athletic footwear”; which is not designed to be a protection against water, oil, or cold or inclement weather; which is not a slip-on; and which is valued over $12 per pair. The general rate of duty will be 9% 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/.

In your letter you state that this “baby bootie” will be made in Canada. The fleece lining with PVC-coated polyester sole attached is made in China and imported into Canada. The lining will then be sewn to a nylon upper, which is cut, eyeleted, appliquéd and labeled by sewers in Canada. The finishing hardware (shock, cord, cordlocks and zip pulls) will also be attached in Canada. The cost of the of the parts made in China, you state, will not be more than 17% of the total cost, making the regional content of the finished product at least 83%.

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 goods described above will qualify for NAFTA preferential treatment, because it will meet the requirements of HTSUS General Note 12(b)(ii)(A). The goods will therefore be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws regulations and agreements, including Regional Value Content requirements specified in General Note 12(t)/64. Footwear is subject to a Regional Value Content (RVC) requirement of not less than 55% under the Net Cost Method.

This ruling letter has not addressed the Regional Value Content (RVC) of the subject goods. If you desire a ruling regarding the RVC of your goods and their eligibility for NAFTA preferential treatment, provide the information noted in Section 181.93(b) of the Customs Regulations (19 CFR 181.93(b)), to the Director, International Trade Compliance Division, Headquarters, U.S. Customs and Border Protection, 1300 Pennsylvania Ave. N.W., (Mint Annex), Washington, D.C. 20229, along with a copy of this letter.

We are returning the submitted sample.

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 Richard Foley at 646-733-3042.

Sincerely,

Robert B. Swierupski
Director,

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