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NY N017273




October 19, 2007

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

CATEGORY: CLASSIFICATION

TARIFF NO.: 6110.20.2040; 6110.30.3040

Mr. Jason M. Waite
Alston & Bird LLP
The Atlantic Building
950 F Street, N.W.
Washington, DC 20004-1404

RE: The tariff classification and status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA) of men’s and boys’ sweatshirts from Honduras.

Dear Mr. Waite:

In your letter dated September 17, 2007, you requested a tariff classification ruling on behalf of your client, Gildan Activewear SRL, concerning the status of men’s and boys’ sweatshirts under the DR-CAFTA. As requested, your samples will be returned.

Styles 9000 and 9500 are men’s and boys’ sweatshirts constructed from 80% cotton, 20% polyester, finely knit fabric that is napped on the inside surface. The fabric measures 22 stitches per two centimeters counted in the horizontal direction. The sweatshirts feature a rib knit crew neckline, long sleeves with rib knit cuffs, and a rib knit bottom.

Styles 12000 12500, 18000 and 18500 are men’s and boys’ sweatshirts constructed from 50% cotton, 50% polyester, finely knit fabric that is napped on the inside surface. The fabric measures 22 stitches per two centimeters counted in the horizontal direction. The sweatshirts feature a rib knit crew neckline, long sleeves with rib knit cuffs, and a rib knit bottom.

You have described the manufacturing and assembly of the garments as follows:

The finely knit, napped fabric used for the body of Styles 9000, 9500, 12000, 12500, 18000 and 18500 will be knit in Honduras from yarns wholly formed in the United States.

This knit fabric will then be dyed, cut and wholly assembled into garments in Honduras.

The rib knit fabric used for the collars, cuffs and waistbands will be knit in tubular form in Honduras with a measurement of 54 inches in circumference and then cut into the required lengths for assembly. This rib knit fabric will contain spandex yarns that may be formed outside the CAFTA territories.

The garment will be assembled using textured polyester 200 denier single multifilament yarn that is dyed, finished with a sewing lubricant, “Z” twisted, and put up on reels weighing less than 1000 grams. You state that some of this textured polyester sewing thread or yarn will be from India.

The question you present is whether Styles 9000, 9500, 12000, 12500, 18000, and 18500 will be eligible for preferential treatment under the DR-CAFTA.

The applicable subheading for Styles 9000 and 9500 will be 6110.20.2040, 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: sweatshirts: men's or boys'. The rate of duty is 16.5% ad valorem.

The applicable subheading for Styles 12000, 12500, 18000 and 18500 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 is 32% ad valorem.

As Styles 12000, 12500, 18000 and 18500 are said to be constructed from a blend of 50% cotton, 50% polyester fibers, no textile material predominates by weight. Following note 2 (A) of section XI, the garments are being classified in the heading that occurs last in numerical order among those which equally merit consideration. However, at the time of entry, Customs may verify the actual fiber content of Styles 12000, 12500, 18000 and 18500. If the fiber content differs from that indicated in your letter, the tariff classification may change from the information indicated above.

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/.

Styles 9000 and 9500 fall within textile category designation 338. Styles 12000, 12500, 18000 and 18500 fall 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 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 2 states that:

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.

General Note 29 (n), Chapter 61, Chapter rule 3 states that:

Notwithstanding Chapter rule 2 to this chapter, a good of this chapter containing fabrics of subheading 5806.20 or heading 6002 shall be considered originating only if such fabrics are both formed from yarn and finished 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.

Styles 9000, 9500, 12000, 12500, 18000 and 18500 were produced in Honduras. Effective April 1, 2006, Honduras became eligible for DR-CAFTA benefits.

The merchandise qualifies for preferential treatment under DR-CAFTA because it meets the requirements of General Note 29 (n), 61.32 and Chapter 61, Chapter rule 2. General Note 29 (n), Chapter 61, Chapter rules 3 and 4 do not apply since the rib knit fabric used for the collars, cuffs, and waistbands of these garments is not classified in subheadings 5806.20 or heading 6002 and, based upon your description, the yarn used in the assembly of these garments does not fall within headings 5204, 5401 or 5508.

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
Director,

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