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March 5, 1999

CLA?2?62:RR:NC:WA:D87725

CATEGORY: CLASSIFICATION

TARIFF NO.: 6204.13.2010

Sergio Galindo
Galindo Customhouse Broker
310 Rio Grande
Pan-Am Bldg - Suite 101
Eagle Pass, TX 78852

RE: Classification and status under the North American Free Trade Agreement (NAFTA), of women's woven suits made in Mexico with coordinating scarves made in Japan; Article 509; applicability of subheading 9802.00.90, HTS

Dear Mr. Galindo:

In your letter dated February 1, 1999, you requested a ruling on the classification and status under the North American Free Trade Agreement (NAFTA), on behalf of Rhodes Collections Inc. As you requested, the sample is being returned to you.

Style 2421 consists of a tailored women’s jacket and skirt with a color coordinated scarf. The jacket and skirt are manufactured from identical woven fabric that is 75% polyester and 25% rayon. Both garments are fully lined with a 100% acetate woven fabric. The short sleeved jacket is made up of four or more panels sewn together lengthwise and features a rounded neckline and a full front opening secured by five buttons with loop closures. The skirt features a waistband with a rear button closure, a rear zipper and a rear center vent. In addition, there is a scarf made from a man-made fiber chiffon fabric which measures approximately 10 x 60 inches. The scarf is attached to the hanger of the garments by a plastic loop which we assume indicates that it will be sold at retail with the garments. The scarf, which is not permanently attached to the jacket, serves as an accessory item.

Note 3, Chapter 62, defines the term suit for purposes of headings 6203 and 6204. The jacket and skirt at issue fit the definition of a suit as provided for in Note 3. The jacket consists of four or more panels and the jacket and skirt are made up of identical fabric, i.e., they are of the same fabric construction, style, color and composition.

ISSUE:

What are the classification, eligibility under NAFTA and applicability of subheading 9802.00.90, HTS, of the subject merchandise?

LAW AND ANALYSIS:

Classification of goods under the HTSUSA is governed by the General Rules of Interpretation (GRI's). GRI 1 provides that classification shall be determined according to the terms of the headings and any relative section or chapter notes. Merchandise that cannot be classified in accordance with GRI 1 is to be classified in accordance with subsequent GRI's taken in order.

Heading 6204, HTS, is the provision for women’s suits among other articles. There is no dispute that the jacket and skirt are classifiable as women’s suits under Heading 6204, HTS. Heading 6214, HTS, is the provision for shawls, scarves, mufflers, mantillas, veils and the like. As the tariff does not contain a heading that specifically provides for suits and scarves, together, classification cannot be based on GRI 1. The issue in this case is whether the scarf and suit are classifiable as a set or whether the scarf and suit are classifiable as composite goods.

GRI 3 applies to goods that are prima facie classifiable under two or more headings. GRI 3 states, in pertinent part, the following:

(b) Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to 3(a), shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable.

The Explanatory Notes to the Harmonized Commodity Description and Coding System (EN), although not legally binding, are the official interpretation of the tariff at the international level. The EN to GRI 3(b), provides, in part:

(IX) For the purposes of this Rule, composite goods made up of different components shall be taken to mean not only those in which the components are attached to each other to form a practically inseparable whole but also those with separable components, provided these components are adapted one to the other and are mutually complementary and that together they form a whole which would not normally be offered for sale in separate parts.

(X) ... provides that goods put up in sets for retail sale shall be classified as if they consisted of the material or component which gives them their essential character. According to the Explanatory Notes, the official interpretation of the HTS at the international level, "goods put up in sets for retail sale" refers to goods which:

(a) consist of at least two different articles which are, prima facie, classifiable in different headings; (b) consist of products or articles put up together to meet a particular need or carry out a specific activity; and (c) are put up in a manner suitable for sale directly to users without repacking.

The suit and scarf are separable components. Therefore, to be considered composite goods, they must be (1) adapted one to the other, (2) be mutually complementary, and (3) form a whole which would not normally be offered for sale in separate parts. The individual suit and scarf are intended to be worn together and are mutually complementary; however, this is generally also true for garments and accessories which are sets. It must be noted that while the suit and scarf is constructed of fabric of man?made fibers, the fabric of each suit is constructed from a complex weave (a solid colored bengaline slub) which gives the garments a textured appearance while the fabric of the scarf is sheer with a tie-dyed appearance and is a plain weave. The suit and scarf submitted are not of identical coloring or matching in any other sense; however, they are complementary. The scarf such as the one submitted with the suit is truly a scarf with a separate commercial identity and is easily susceptible to wear with other garments. In this case, due to the dimensions, finishing, and overall design of the subject scarves, they are of a kind of product which is normally offered for sale separately.

The suit and scarf, therefore, more properly fall within the definition of sets, i.e., at least two articles classifiable in different headings (6204 ? suit and 6214 ? scarf), put up together to meet a particular need (to clothe; adornment), and imported in a condition for sale directly to the consumer. As a set, these styles are classifiable by that componnent which gives the set its essential character. As the scarf is an accessory to the suit, it is the suit which determines the essential character of the set.

Based on the foregoing, the classification of Style 2421 is subheading 6204.13.2010, HTSUSA, which is the provision for other women’s suits, of synthetic fibers. The general rate of duty is 36.4 cents/kg plus 26.7 percent ad valorem. The textile restraint category is 644. For textile restraint purposes, the scarf is reported in subheading 6214.30.0000, HTSUSA, which provides for shawls, scarves, mufflers, mantillas, veils and the like, of synthetic fibers. The textile restraint category is 659.

The designated textile and apparel category may be subdivided into parts. If so, visa and quota requirements applicable to the subject merchandise may be affected. Since part categories are the result of international bilateral agreements which are subject to frequent renegotiations and changes, to obtain the most current information available, we suggest that you check, close to the time of shipment, the Status Report On Current Import Quotas (Restraint Levels), an internal issuance of the U.S. Customs Service, which is available for inspection at your local Customs office.

II. NAFTA

In regard to your question as to whether the suit and scarf may be considered NAFTA originating goods, you have indicated that the yarn and fabric of the suit as well as the lining fabric will be manufactured in the United States, that the fabric will be cut into component parts in the United States and sent to Mexico for assembly into a completed garment. The scarf is made from fabric made in Japan. As noted above, the suit and scarf are classified as a set. The rule applicable to the goods of subheading 6204, HTS, is set out in General Note 12(t)/ 62.17 which provides:

17. A change to subheadings 6204.11 through 6204.13 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:

(A) the good is both cut and sewn or otherwise assembled in the territory of one or more of the NAFTA parties, and

(B) the visible lining fabric listed in chapter rule 1 for chapter 62 satisfies the tariff change requirements provided therein.

Furthermore, Chapter 62 rule 3 states:

For determining the origin of a good of this chapter, the rule applicable to that good shall 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.

As the scarf does not not determine the tariff classification of the suit, it may be disregarded in making the determination. Accordingly, we find that the suit and the scarf qualify for NAFTA preferential treatment.

Style 2421 qualifies for preferential treatment under the NAFTA because materials used in the production of the goods will undergo the change in tariff classification required by General Note 12(t)/62.17, HTS. The item produced in Mexico may be entitled to a free rate of duty under NAFTA upon compliance with applicable laws, regulations, and agreements. Further, as NAFTA originating products, this item, when imported from Mexico, is not subject to quota or visa requirements.

III. 9802.00.90

You have inquired whether the suit and the scarf would be eligible for duty-free treatment under subheading 9802.00.90, HTS. You have indicated that the yarn and fabric of the suit as well as the lining fabric will be manufactured in the United States, that the fabric will be cut into component parts in the United States and sent to Mexico for assembly into a completed garment. The scarf is made in Japan.

One of the special provisions contained in Annex 300?B of the North American Free Trade Agreement ("NAFTA") is Appendix 2.4, which provides for the elimination of customs duties on textile and apparel goods that are assembled in Mexico from fabrics wholly formed and cut in the U.S. To implement this provision, a new tariff item was created in subheading 9802.00.90, HTSUS.

Subheading 9802.00.90, HTSUS, provides as follows:

Textile and apparel goods, assembled in Mexico in whole of fabrics wholly formed and cut in the United States, which (a) were exported in condition ready for assembly without further fabrication, (b) have not lost their physical identity in such articles by change in form, shape or otherwise, and (c) have not been advanced in value or improved in condition abroad except by being assembled and except by operations incidental to the assembly process; provided that goods classifiable in Chapters 61, 62, or 63 may have been subject to bleaching, garment dyeing, stone?washing, acid?washing or perma?pressing after assembly asprovided for herein.

Since the suit and scarf are classified as a set, the entire good must be considered in making a 9802.00.90, HTS, determination. Subheading 9802.00.90, HTS, requires that all of the fabric be of U.S. origin. In this case, the fabric of the scarf is not of U.S. origin. Accordingly, the merchandise will not qualify for duty?free treatment under subheading 9802.00.90, HTS.

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

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. If you have any questions regarding the ruling, contact National Import Specialist Patricia Schiazzano at 212 - 637-7080.

Sincerely,

Robert B. Swierupski
Director,

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See also:

• Tariff No.: 6204.13.20 - Women's or girls' suits, not knitted or crocheted, of synthetic fibers, nesoi
• Tariff No.: 6214.30.00 - Shawls, scarves, mufflers, mantillas, veils and the like, not knitted or crocheted, of synthetic fibers
• Tariff No.: 9802.00.90 - Textile and apparel goods, assembled in Mexico in which all fabric components were wholly formed and cut in the United States, etc.