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NY N019815




November 20, 2007

CLA-2-61:OT:RR:NC:WA:358

CATEGORY: CLASSIFICATION

TARIFF NO.: 6104.62.2060

Ms. Emilia Arroyo
Jerry Leigh Entertainment Apparel
7860 Nelson Road
Van Nuys, CA 91402

RE: The tariff classification and status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA), of girl’s shorts from El Salvador.

Dear Ms. Arroyo:

In your letter dated November 13, 2007, you requested a ruling on the classification and status under DR-CAFTA of girl’s shorts from El Salvador.

The submitted garment, style JS0477, is a pair of girl’s cotton knit shorts. The pull-on style shorts are made of French terry fabric and have a rib knit waistband. Narrow cotton woven tape ties to the waistband at the garment front.

You have described the manufacturing process as follows:

This garment is made of 100% cotton and was produced in El Salvador with fabric, yarn and elastic originated (sic) from a DR-CAFTA country. This garment has a trim item 3/8 inch woven cotton tape made in China in the waist for decoration and the cost of the trim is less than 10% of the total value of the garment.

The applicable tariff provision for girl’s cotton shorts, style JS0477, will be 6104.62.2060 , Harmonized Tariff Schedule of the United States (HTSUS), which provides for women’s or girls’ trousers, breeches and shorts, knitted or crocheted, of cotton, other, shorts, girls’ other. The general rate of duty will be 14.9 percent.

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/.

Girl’s cotton shorts fall within textile category 348. With the exception of certain products of China, quota/visa requirements are no longer applicable for merchandise which is the product of World Trade Organization (WTO) member countries.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.

You inquire whether the foreign tape or any other trim like lace, ribbon, twill tape, not produced in a DR-CAFTA country, disqualifies the garment for duty free status under CAFTA when it is imported to the United States. Our reply is limited to the factual situation involving the submitted sample.

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.

Your inquiry involves the applicability of General Note 29(n), Chapter 61, notes 2 and 3, and whether the narrow cotton fabric satisfies all other applicable requirements of this note. Chapter 61, notes 2 and 3 enumerate the following requirements:

Chapter rule 2:
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. If the rule requires that the good must also satisfy the tariff change requirements for visible lining fabrics listed in chapter rule 1 to this chapter, such requirement shall only apply to the visible lining fabric in the main body of the garment, excluding sleeves, which covers the largest surface area, and shall not apply to removable linings.

Chapter rule 3:
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.

The narrow cotton fabric from China is classifiable in subheading 5806.31.0000. Chapter note 3 does not require that this fabric meet the tariff change requirements.

The merchandise qualifies for preferential treatment under DR-CAFTA because the good was produced entirely in the territory of one or more of the parties to the agreement and 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.

Therefore, as noted above, the garment qualifies for preferential treatment under the DR-CAFTA rules.

This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).

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 Bruce Kirschner at 646-733-3048.

Sincerely,

Robert B. Swierupski
Director,

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