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NY N025317




April 11, 2008

CLA-2-63:OT:RR:E:NC:TA:349

CATEGORY: CLASSIFICATION

TARIFF NO.: 6301.40.0020

Ms. Nikki Adams
Fruit of the Loom
One Fruit of the Loom Drive
Bowling Green, KY 42102

RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of blankets from Canada or Mexico; Article 509

Dear Ms. Adams:

In your letter dated March 26, 2008 you requested a ruling on the status of blankets from Canada or Mexico under the NAFTA.

The subject merchandise consists of knit blankets made from 40 percent cotton and 60 percent polyester. A sample was not submitted. The cotton fibers were grown in the United States. Two thirds of the polyester staple fibers (40 percent of the weight of the blankets) were produced in the United States while the remainder, referred to as black polyester staple fibers, was made in a non-NAFTA country. Bales of the U.S. cotton and polyester fibers and the non-NAFTA black polyester fibers are shipped to a U.S. manufacturing plant where they are blended, carded and spun into a yarn. The yarn is then shipped to a U.S. fabric manufacturer where it is knitted into a fabric. The fabric is shipped to a NAFTA country where it will be cut and sewn to form the blankets. They are packaged and shipped to the U.S.

The applicable tariff provision for the blankets will be 6301.40.0020, Harmonized Tariff Schedule of the United States (HTSUS), which provides for blankets and traveling rugs: blankets (other than electric blankets) and traveling rugs, of synthetic fibers other. The general rate of duty will be 8.5 percent 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/.

The blankets fall within textile category 666. With the exception of certain products of China, quota/visa requirements are no longer applicable for merchandise which is the product of World Trade Organization (WTO) member countries.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 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 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;

Based on the facts provided, the goods described above not qualify for preferential treatment under the NAFTA because none of the above requirements are met. In your letter you suggest that the blankets satisfy the tariff classification change and would qualify for preferential treatment. For subheading 6301.40, HTSUS, the appropriate subdivision (t) change in tariff classification rule requires:

A change to headings 6301 through 6302 from any other chapter, except from headings 5106 through 5113, 5204 through 5212, 5307 through 5308 or 5310 through 5311, chapters 54 through 55, or headings 5801 through 5802 or 6001 through 6006, provided that the good is both cut (or knit to shape) and sewn or otherwise assembled in the territory of one of more of the NAFTA parties.

When exported from the non-NAFTA country the black polyester staple fibers are classified in heading 5503, HTSUS. As all of Chapter 55 is excepted from meeting the change to heading 6301, HTSUS, the non-originating material does not undergo the requisite change in tariff classification. The blankets do not meet any of the other requirements and therefore do not qualify for preferential treatment under the NAFTA.

However, the blankets may be subject to a reduced rate of duty based upon the Tariff Preference Levels (TPL) established in Section XI, Additional U.S. Note 4(a) or (b), up to the annual quantities specified in subdivision (c) or (d) of Note 4. Upon completion of the required documentation and up to the specified annual quantities, the blankets may be eligible for the preferential rate of Free.

This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 C.F.R. 181).

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 John Hansen at 646-733-3043.

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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