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NY N008607




April 20, 2007

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

CATEGORY: CLASSIFICATION

TARIFF NO.: 6110.30.3040

Ms. Florence Lai
Ash City
2111 McCowan Road
Scarborough, ON Canada
MIS 3Y6

RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA) of a men’s knit pullover; Article 509.

Dear Ms. Lai:

In your letter dated March 12, 2007, you requested a ruling on the status of certain men’s knit garments under the North American Free Trade Agreement (NAFTA) and the dutiable value of this merchandise. As requested, your sample will be returned.

The submitted garment is a men’s sweatshirt constructed from 100% polyester, finely knit, greige (undyed) fabric that is napped on the inside surface. The garment features a rib knit crew neckline, long sleeves with rib knit cuffs, and a rib knit bottom.

You state that the sweatshirts will be cut and assembled in Bangladesh, Vietnam or China from undyed, greige fabric and will be imported into Canada in a condition known as PFGD (prepared for garment dyeing). In Canada, the sweatshirts will be garment dyed before importation into the United States.

The applicable subheading for the sweatshirts will be 6110.30.3040, Harmonized Tariff Schedule of the United States, (HTSUS), which provides for: sweaters, pullovers, sweatshirts, waistcoats (vests) and similar articles, knitted or crocheted: of man-made fibers: other: other: other: other: sweatshirts: men's or boys'. The rate of duty will be 32% 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 sweatshirt falls within textile category designation 638. With the exception of certain products of China, quota/visa requirements are no longer applicable for merchandise which is the product of World Trade Organization (WTO) member countries.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.

General Note 12(t)/61.35, which is applicable to the sweatshirt, states: “A change to headings 6109 through 6111 from any other chapter, except from headings 5106 through 5113, 5204 through 5212, 5307 through 5308 or 5310 through 5311, chapter 54, or headings 5508 through 5516 or 6001 through 6006, provided that the good is both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or more of the NAFTA parties.”

The merchandise does not qualify for preferential treatment under the NAFTA because none of the above requirements are met. Tariff preference Levels (TPL) as defined in the HTSUS, Section XI, Additional U.S. note 3(a) do not apply because the goods were not cut and sewn or otherwise assembled in Canada.

The cost of dyeing the garments in Canada is part of the dutiable value of the goods. The sweatshirts are dutiable on their full value upon importation into the United States. We note that a final determination regarding the value of the merchandise can only be made at the time of entry of the goods into the United States.

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

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