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NY N013106





June 27, 2007

CLA-2-62: RR:NC:TA:N3:358

CATEGORY: CLASSIFICATION

TARIFF NO.: 6209.20.5030; 6217.90.9085

Mr. Chad Bailey
The Bailey Boys
373 Skylane Road
St. Simons Island, Georgia 31522

RE: The tariff classification and status under the Dominican Republic-Central America Free Trade Agreement (DR-CAFTA) of babies’ wear from El Salvador

Dear Mr. Bailey:

In your letter dated June 14, 2007 you requested a ruling on the tariff classification and status under the Dominican Republic-Central America Free Trade Agreement (DR-CAFTA) of a smocking panel and a babies’ bubble type playsuit from El Salvador.

The submitted samples, which do not have style numbers, are a made-up smocking panel with embroidery work that is ready for incorporation into the bodice panel of a babies’ bubble type playsuit and the completed playsuit itself. The sleeveless playsuit has a front bib with self fabric shoulder straps that button onto the rear waist, a snap crotch and elasticized fabric at the leg openings and rear waistband. Except for the smocked bodice panel, the garment is made of woven cotton fabric with two or more colors in the warp and/or the filling. The smocking panel is made of woven fabric that is 65% polyester, 35% cotton. The embroidery thread is cotton.

The samples are retained for reference purposes.

You propose two manufacturing scenarios. Under the first scenario the smocking panel will be manufactured in El Salvador and shipped to the United States where it will be assembled into the finished garment. Under the second scenario the smocking panel together with the other garment components will be fully assembled in El Salvador. You state in telephone conversation that under both manufacturing scenarios the goods will be produced entirely in El Salvador and/or the United States exclusively from fabric that is woven in El Salvador from yarn that is made in El Salvador. You also state that the materials used in the manufacture of these garments, such as thread, elastic and garment labels, originate in either El Salvador or the United States.

The applicable subheading for the smocking panel will be 6217.90.9085, Harmonized Tariff Schedule of the United States (HTSUS), which provides for other made-up clothing accessories: parts of garments or of clothing accessories, other than those of heading 6212, other, other, of man-made fibers. The rate of duty is 14.6 percent ad valorem.

The applicable subheading for the babies’ bubble type playsuit will be 6209.20.5030, Harmonized Tariff Schedule of the United States (HTSUS), which provides for babies’ garments and clothing accessories, of cotton, other, other, sunsuits, washsuits and similar apparel. The rate of duty is 9.3 percent ad valorem.

The smocking panel falls within textile category designation 659. The bubble type playsuit falls within textile category designation 239. 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.cpb.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, HTSUS, sets forth the criteria for determining whether a good is originating under the 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 nonoriginating 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.

Under the first scenario involving the smocking panel General Note 29 (n) 62.41 requires:

A change to headings 6213 through 6217 from any other chapter, except from headings 5111 through 5113, 5204 through 5212, 5310 through 5311, chapter 54, headings 5508 through 5516, 5801 through 5802 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.

The smocking panel was cut and sewn in El Salvador from fabric woven in El Salvador from yarns made in El Salvador. Accordingly, the merchandise qualifies for preferential treatment under DR-CAFTA because it meets the requirements of General Note 29(n) Chapter 62, rule 62.41.

Under the second scenario involving all garment components, Chapter 62, Chapter Rule 2 states in pertinent part:

For purposes of determining whether a good of this chapter is originating, the rule applicable to that good shall only apply to the component that determines the tariff classification of the good and such component must satisfy the tariff change requirements set out in the rule for that good.

The component that determines the tariff classification of the good is the woven cotton fabric with two or more colors in the warp and/or the filling. For this fabric General Note 29 (n) 62.35 requires:

A change to headings 6209 through 6210 from any other chapter, except from headings 5111 through 5113, 5204 through 5212, 5310 through 5311, chapter 54, headings 5508 through 5516, 5801 through 5802 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.

The cotton fabric was cut and sewn in El Salvador from fabric woven in El Salvador from yarns made in El Salvador. Accordingly, the merchandise qualifies for preferential treatment under DR-CAFTA because it meets the requirements of General Note 29(n) Chapter 62, rule 62.35.

Based on the facts provided, the goods described above qualify for DR-CAFTA preferential treatment, because they will meet the requirements of HTSUS General Note 29(b) (ii) (A). The goods will therefore be entitled to a free rate of duty under the DR-CAFTA upon compliance with all applicable laws, regulations, and agreements Based on the information you supplied, the submitted smocking panel and bubble type playsuit are eligible for duty free treatment under the Dominican Republic-Central America Free Trade Agreement (DR-CAFTA).

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 Bruce Kirschner at 646-733-3048.

Sincerely,

Robert B. Swierupski
Director,
National Commodity

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