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NY N010716




May 17, 2007

CLA-2-61:RR:NC:WA:361

CATEGORY: CLASSIFICATION

TARIFF NO.: 9802.00.5060

Ms. Jo Bronson Harris
Sandler, Travis & Rosenberg, P.A.
The Waterford
5200 Blue Lagoon Drive
Miami, Florida
33126-2022

RE: The eligibility for partial duty exemption under subheading 9802.00.5060, HTSUS, for certain knit garments.

Dear Ms. Harris:

In your letter dated May 2, 2007, you requested a ruling on behalf of GFSI, Inc., concerning the eligibility for partial duty exemption under subheading 9802.00.5060, HTSUS, for certain knit garments that will imported into the United States.

You state that knit garments will be imported into the United States. You state that the garments will be available for sale in their imported condition. However, some garments are exported to Mexico to undergo embellishing operations. The operations include embroidering, screen-printing and applying appliqués constructed of tackle twill fabric. After the operations are performed in Mexico, the garments will be returned to the United States.

We are returning your samples.

Subheading 9802.00.50, HTSUS, provides a partial or complete duty exemption for articles exported from and returned to the United States after having been advanced in value or improved in condition by repairs or alterations, provided that the appropriate documentary requirements of 19 CFR 10.8 are met. However, entitlement to this tariff treatment is precluded in circumstances where the operations performed abroad destroy the identity of the exported articles or create new or commercially different articles through a process of manufacture. Subheading 9802.00.50, HTSUS, treatment is also precluded where the exported articles are incomplete for their intended use and the foreign processing operation is a necessary step in the preparation or manufacture of finished articles.

In this instance, the garments are complete for their intended use prior to being exported to Mexico to undergo the stated operations. As exported from the United States, the garments are finished products in that they are suitable for use as wearing apparel. Although the operations performed in Mexico alter the appearance of the garments, such operations do not otherwise enhance the character of the garments. They are shipped to Mexico solely for embroidery, screen-printing, and/or applying an appliqué before being returned to the United States. The merchandise in its condition as exported from the United States and as returned from Mexico can be marketed and sold to consumers for the same use. The operations performed in Mexico do not result in the loss of the good’s identity nor create a new article with a different commercial use. Therefore, the embroidering, screen-printing and appliquéing performed in Mexico constitute acceptable repairs and alterations within the meaning of subheading 9802.00.50, HTSUS. The garments will qualify for the special tariff treatment of that provision, provided that the documentary requirements of 19 C.F.R. § 181.64 are met.

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 Peggy Fitzgerald at 646-733-3052.

Sincerely,

Robert B. Swierupski
Director,
National Commodity

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