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NY N019664




December 12, 2007

CLA2-OT:RR:NC:3:353

CATEGORY: CLASSIFICATION

Mr. Francisco Ramirez, Jr.
ACE Group, Automated Commercial Experts
9163 Siempre Viva Rd.
San Diego, CA 92154

RE: Classification and country of origin determination for a tactical outer carrier; 19 CFR 102.21(c)(2); tariff shift; the status under the North American Free Trade Agreement (NAFTA); Article 509

Dear Mr. Ramirez:

This is in reply to your letter dated November 9, 2007, on behalf of Safariland, Ltd., requesting a classification, country of origin determination and status under the NAFTA for a tactical outer carrier which will be imported into the United States. As requested, the sample will be returned.

FACTS:

The subject merchandise consists of Model A-XOOO-xxxx-OYK-2144, a Tactical Outer Carrier (T.O.C.), constructed of an outer shell of woven 100% nylon fabric coated on the inside with a urethane plastic that is not visible to the naked eye. The sleeveless garment is pulled over the head and features a scoop neck, oversize arm holes, adjustable hook and loop closure pads on the sides, a hook and loop identification holder, a shock cord, multiple pockets for equipment and inner areas for the introduction of protective inserts.

The manufacturing operations for the Model A-XOOO-xxxx-OYK-2144 are as follows:

Originating and non-originating materials and components are shipped from Canada to Mexico where the T.O.C. is manufactured. The non-originating materials/components consist of the woven nylon fabric from Korea used to construct the outer shell, and some hook and loop material and a shock cord from Indonesia. In Mexico the fabric is cut to shape and the garment is sewn and assembled.

ISSUE:

What are the classification, country of origin and status under the NAFTA of the subject merchandise?

CLASSIFICATION:

The applicable subheading for the Model A-XOOO-xxxx-OYK-2144 will be 6211.43.0091, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Other garments, women’s or girls’: Of man-made fibers, Other.” The general rate of duty will be 16% 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/.

COUNTRY OF ORIGIN - LAW AND ANALYSIS:

Section 334 of the Uruguay Round Agreements Act (codified at 19 U.S.C. 3592), enacted on December 8, 1994, provided rules of origin for textiles and apparel entered, or withdrawn from warehouse for consumption, on and after July 1, 1996. Section 102.21, Customs Regulations (19 C.F.R. 102.21), published September 5, 1995 in the Federal Register, implements Section 334 (60 FR 46188). Section 334 of the URAA was amended by section 405 of the Trade and Development Act of 2000, enacted on May 18, 2000, and accordingly, section 102.21 was amended (68 Fed. Reg. 8711). Thus, the country of origin of a textile or apparel product shall be determined by the sequential application of the general rules set forth in paragraphs (c)(1) through (5) of Section 102.21.

Paragraph (c)(1) states, “The country of origin of a textile or apparel product is the single country, territory, or insular possession in which the good was wholly obtained or produced.” As the subject merchandise is not wholly obtained or produced in a single country, territory or insular possession, paragraph (c)(1) of Section 102.21 is inapplicable.

Paragraph (c)(2) states, “Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1) of this section, the country of origin of the good is the single country, territory, or insular possession in which each of the foreign materials incorporated in that good underwent an applicable change in tariff classification, and/or met any other requirement, specified for the good in paragraph (e) of this section:” Paragraph (e) in pertinent part states,

The following rules shall apply for purposes of determining the country of origin of a textile or apparel product under paragraph (c)(2) of this section:

HTSUS Tariff shift and/or other requirements

6210–6212 (1) If the good consists of two or more component parts, a change to an assembled good of heading 6210 through 6212 from unassembled components, provided that the change is the result of the good being wholly assembled in a single country, territory, or insular possession.

As the Model A-XOOO-xxxx-OYK-2144 is assembled in a single country, that is, Mexico, as per the terms of the tariff shift requirement, country of origin is conferred in Mexico.

Model A-XOOO-xxxx-OYK-2144 falls within textile category 659. 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. Quota and visa requirements are the result of international agreements that are subject to frequent renegotiations and changes. 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.

NAFTA

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.

As the Model A-XOOO-xxx-OYK-2144 is classified in subheading 6211.43, HTSUS, GN 12(t)/62.35 applies, which states:

A change to subheadings 6211.31 through 6211.49 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, 5801 through 5802 or 6001 through 6002, provided that the good is both cut and sewn or otherwise assembled in the territory of one or more of the NAFTA parties.

The woven fabric from Korea is a fabric of Chapter 54. The merchandise does not qualify for preferential treatment under the NAFTA because one or more of the non-originating materials used in the production of the good will not undergo the change in tariff classification required by General Note 12(t)/62.35 and because none of the other requirements of GN 12 (b) are met.

In addition, Model A-XOOO-xxx-OYK-2144 may be subject to a reduced rate of duty based upon the Tariff Preference Levels (TPL) established in Section XI, Additional U.S. Note 3 (b), up to the annual quantities specified in subdivision (g)(i)(A) of Note 3. Upon completion of the required documentation and up to the specified annual quantities, Model A-XOOO-xxx-OYK-2144 may be eligible for the preferential rate of Free.

This ruling is being issued under the provisions of Parts 177 and 181 of the Customs Regulations (19 C.F.R. 177 and 181). Should it be subsequently determined that the information furnished is not complete and does not comply with 19 CFR 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 recommended that a new ruling request be submitted in accordance with 19 CFR 177.2.

A copy of the ruling 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 the ruling, contact National Import Specialist Kenneth Reidlinger at 646-733-3053.

Should you wish to request an administrative review of this ruling, submit a copy of this ruling and all relevant facts and arguments within 30 days of the date of this letter, to the Director, Commercial Rulings Division, Headquarters, U.S. Customs and Border Protection, 1300 Pennsylvania Ave. N.W., (Mint Annex), Washington, D.C. 20229.

Sincerely,

Robert B. Swierupski
Director,

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