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NY D83238

October 28, 1998

CLA-2-61:RR:NC:TA:354 D83238


TARIFF NO.: 6116.93.9400

Mr. Jeffrey E. Berman
Chesta Co., Inc.
6430 E. Main Street
Reynoldsburg, Ohio 43068-2367

RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of gloves from Mexico; Article 509; and quota/visa status of Taiwanese fabric shipped to the United States and transported in bond for export to Mexico.

Dear Mr. Berman:

In your letter dated October 1, 1998 you requested a ruling on the status of knitted gloves from Mexico under the NAFTA.

You have indicated that the polyester fleece material for the gloves will be shipped to the United States from a foreign supplier in Taiwan. The material will be transported in bond in full container loads to Nogales, Arizona for exportation to Obergon, Mexico where the cutting and sewing into gloves will occur.

Specifically, you have inquired if a textile visa or quota will be required for the material shipped to the United States and for the finished gloves produced in Mexico.

The submitted sample, style LC1125, is a polyester fleece glove with an elasticized wrist, a flared cuff which is hemmed and fourchettes. The applicable tariff provision for the gloves will be 6116.93.9400, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for Gloves, mittens and mitts, knitted or crocheted: other: of synthetic fibers: other: other: with fourchettes. The duty rate will be 19.3 percent ad valorem.

The glove falls within textile category designation 631. Based upon international textile trade agreements products of Mexico are not currently subject to quota and nor the requirement of a visa.

The subject merchandise undergoes processing operations in Mexico which is a country provided for under the North American Free Trade Agreement (NAFTA). General Note 12, HTSUSA, incorporates Article 401 of the NAFTA into the HTSUSA. Note 12(a) provides, in pertinent part:

(ii) Goods that originate in the territory of a NAFTA party under the terms of subdivision (b) of this note and that qualify to be marked as goods of Mexico under the terms of the marking rules . . . and are entered under a subheading for which a rate of duty appears in the "Special" subcolumn followed by the symbol "MX" in parentheses, are eligible for such duty rate... . [Emphasis added]

Accordingly, the merchandise at issue will be eligible for the "Special" "MX" rate of duty provided it is a NAFTA "originating" good under General Note 12(b), HTSUSA, and it qualifies to be marked as a good of Mexico. Note 12(b) provides in pertinent part,

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

The subject merchandise qualifies for NAFTA treatment only if the provisions of General Note 12(b)(ii)(A) are met, that is, if the merchandise is transformed in the territory of Mexico so that the non-originating material undergoes a change in tariff classification as described in subdivision (t).

The knitted gloves are classified in subheading , 6116.93.9400 HTSUSA. For heading 6116, HTSUS, subdivision (t), Chapter 61, rule 39, states that:

A change to headings 6113 through 6117 from any other chapter, except from headings 5106 through 5113, 5204, through 5212, 5307 through 5308 or 5310 through 5311, chapter 54, or heading 5508 through 5516 or 6001 through 6002, provided that the good is both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or more of the NAFTA parties.

The merchandise does not qualify for preferential treatment under the NAFTA because the glove is formed in Mexico from Taiwanese fabric classified in heading 6002 HTSUS and thus is excepted by rule 39 to chapter 61. Accordingly, the glove therefore does not undergo the requisite change in tariff classification and is not eligible for the NAFTA preference. Regarding the foreign fleece material, no visa requirements or quota restrictions are applicable for foreign textiles transiting the United States using a transportation and exportation entry. Information regarding this procedure may be found in The Customs Regulations of the United States in Section 18.20.

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 Brian Burtnik at 212-466-5880.

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 Service, 1300 Pennsylvania Ave. N.W., Washington, D.C. 20229.


Robert B. Swierupski

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