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NY 814122

September 12, 1995

CLA-2-64:S:N:N6:346 814122


TARIFF NO.: 9802.00.8040 ; 6406.10.7000

Ms. Janet S. Cool
Daniel Green Company
Dolgeville, NY 13329-1398

RE: The tariff classification, user fees and country of origin marking of footwear uppers from the Dominican Republic; CBI-2

Dear Ms. Cool:

In your letter dated August 25, 1995, you requested a tariff classification ruling for two sample uppers that you have identified as Style #'s 92100 and 92170. Both these shoe uppers, you state, will be assembled in the Dominican Republic from component parts that are of 100% U.S. origin. The assembly of the various upper components will be accomplished by stitching and gluing processes. All of the component parts used in making these uppers will be shipped directly from the USA to the Dominican Republic without entering the commerce of any other country.

The sample uppers you have provided have predominately textile external surfaces, with leather toe caps, leather heel counters and extensive leather accessories and reinforcements stitched-on at the sides, over the eyelets and across the toes. The only differences between the two uppers, aside from the color of the textile vamps, is that #92100 has a five eyelet front lace closure and #92170 has a two strap "hook and loop" type tab front closure. Both uppers have completely open bottoms.

Therefore, both these shoe uppers will be classified in subheading 9802.00.8040, Harmonized Tariff Schedule of the United States (HTS), free of duty, as articles not assembled in Mexico, that were assembled abroad of fabricated components, the products of the United States, which were exported in condition ready for assembly without further fabrication, which have not lost their physical identity, and which have not been advanced in value or improved in condition abroad except by being assembled and except by operations incidental to the assembly process, and which meet the conditions of U.S. note 2-b to Subchapter II of Chapter 98. We assume that you will be able to supply the port of entry with whatever documents or other evidence it deems necessary to confirm that those conditions have, in fact, been met. Customs Headquarters has issued no directives or guidelines so it would likely be useful to discuss the documentation and evidence required with the Customs personnel in each district in which you may make entry.

Per Statistical Note 2 to Subchapter II, you must split out on the Customs entry, "the dutiable value, i.e., the total value of the articles less the value of the U.S. fabricated components" and assign to it the classification that would ordinarily apply in the absence of US note 2-b to that Subchapter. Note that in this context, there is never any duty actually payable on this "dutiable value".

The classification that would ordinarily apply to these items is 6406.10.7000, Harmonized Tariff Schedule of the United States (HTS), which provides for shoe uppers, which are less than formed uppers with insoles which would cover all or most of the bottom of the wearer's foot; in which the upper's external surface is predominately textile materials (note that an accessory or reinforcement stitched on top of another material is not part of the upper's external surface, but the material hidden underneath is); and in which the upper's external surface is over 50% leather after every leather accessory or reinforcement is included as part of the upper's external surface.

Items classified in 9802.00.8040 do not need to have any country of origin marking when imported into the U.S. However, we note that both the submitted sample uppers have sewn-on cloth labels at the tops of the tongues which include the misleading statement "Made in U.S.A." Questions regarding what would be acceptable marking, given the fact that these uppers were actually assembled in the Dominican Republic of U.S. components, or, if you intend to mark the finished shoes "Made in USA", must be decided by the Federal Trade Commission (FTC), Division of Enforcement. The FTC has primary responsibility under statutes which determine when a "Made in USA" claim can be made. You must submit a copy of your inquiry to the FTC with their reply, if any, to the responsible Customs officer at the port of entry prior to the release of any shipment(s) marked "Made in USA".

Merchandise Processing Fees described in 19 CFR 24.23 will not apply to this merchandise.

This ruling is being issued under the provisions of Section 177 of the Customs Regulations (19 C.F.R. 177). A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise is imported. If the documents have been filed without a copy, this ruling should be brought to the attention of the Customs officer handling the transaction.


Jean F. Maguire
Area Director

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