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NY N006292




March 1, 2007

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

CATEGORY: CLASSIFICATION

TARIFF NO.: 6110.20.2069

Ms. Patty Peacock
Anvil Knitwear, Inc.
146 W. Country Club Road
Hamer, SC 29547

RE: The tariff classification and status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA) of a men’s knit pullover from Honduras, El Salvador and Nicaragua.

Dear Ms. Peacock:

In your letter dated November 15, 2006, and in subsequent correspondence dated January 31, 2007, you requested a classification ruling concerning the status of a men’s knit pullover under the DR-CAFTA. As requested, your sample will be returned.

The submitted garment is a men’s pullover constructed from 100% cotton, finely knit jersey fabric that measures 23 stitches per two centimeters counted in the horizontal direction. The fabric weighs more than 200 grams per square meter. The sample has a rib knit crew neckline; short, hemmed sleeves; and a straight, hemmed bottom.

You state that the garment will be cut and wholly assembled in Honduras, El Salvador, and Nicaragua from fabric knit in the United States and Honduras from yarns wholly formed in the United States.

You describe the yarn used in the assembly of the garment as follows: “The singles yarn at issue is a textured polyester, 150 denier, single multifilament yarn that is dyed, finished with a sewing lubricant, ‘Z’ twisted, and put up on cones weighing approximately 16 ounces per cone.” You state that it will be formed in the United States and finished in Costa Rica.

On March 1, 2006, El Salvador became eligible for DR-CAFTA benefits. On April 1, 2006, Honduras and Nicaragua became eligible for DR-CAFTA benefits. Costa Rica is not eligible for benefits under the DR-CAFTA.

The question you present is whether the garment is eligible for preferential treatment under the DR-CAFTA if the aforementioned textured polyester yarn used in the assembly of the garment is not finished in the territory of one or more of the parties to DR-CAFTA.

The applicable subheading for the garment will be 6110.20.2069, Harmonized Tariff Schedule of the United States, (HTSUS), which provides for: sweaters, pullovers, sweatshirts, waistcoats (vests) and similar articles, knitted or crocheted: of cotton: other: other: other: men's or boys': other. 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 garment falls within textile category designation 338. Quota and visa status are the result of international agreements that are subject to frequent renegotiations and changes. To obtain the most current information as to whether quota and visa requirements apply to this merchandise, we suggest that you check, close to the time of shipment, the “Textile Status Report for Absolute Quotas” available at our web site at www.cbp.gov. In addition, you will find current information on textile import quotas, textile safeguard actions and related issues at the web site of the Office of Textiles and Apparel 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.

General Note 29 (n) 61.32 requires:

A change to headings 6109 through 6111 from any other chapter, except from headings 5111 through 5113, 5204 through 5212, 5310 through 5311, chapter 54, headings 5508 through 5516 or 6001 through 6006, provided that the good is cut or knit to shape, or both, and sewn or otherwise assembled in the territory of one or more of the parties to the Agreement.

General Note 29 (n), Chapter 61, Chapter rule 4 states that:

Notwithstanding chapter rule 2 to this chapter, a good of this chapter containing sewing thread of headings 5204, 5401 or 5508 shall be considered originating only if such sewing thread is both formed and finished in the territory of one of more of the parties to the Agreement.

Note 5 to Section XI, HTSUS, defines sewing thread, in pertinent part, as follows:

For the purposes of headings 5204, 5401 and 5508, the expression "sewing thread" means multiple (folded) or cabled yarn. . . [emphasis added].

Because the yarns you have described are singles yarns, they do not meet the tariff definition of sewing thread.

You state that the yarn is textured. We take that to mean that it has been altered by a mechanical or physical process (e.g., twisting, untwisting, compression, ruffling.) We have detected a slight elasticity and reduced parallel orientation of the filaments, both indicators of texturing processes.

The applicable subheading for the textured filament multifilament singles yarns is 5402.33.3000, HTSUS, which provides for synthetic filament yarn (other than sewing thread), not put up for retail sale, . . . textured yarn, of polyesters, single yarn.

Based upon your description, the sewing thread used in the assembly of the pullover does not fall within headings 5204, 5401 or 5508. As such, Chapter 61, rule 4 does not apply and the use of such sewing thread in the assembly of the garment will not affect the CAFTA eligibility of the garments. Therefore, the merchandise qualifies for preferential treatment under DR-CAFTA because it meets the requirements of General Note 29 (n), 61.32 and Chapter 61, rule 4.

This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177). 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

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