United States International Trade Commision Rulings And Harmonized Tariff Schedule
faqs.org  Rulings By Number  Rulings By Category  Tariff Numbers
faqs.org > Rulings and Tariffs Home > Rulings By Number > 1999 NY Rulings > NY E81755 - NY E81820 > NY E81804

Previous Ruling Next Ruling


July 20, 1999

CLA-2-62:RR:NC:TA:361 E81804

CATEGORY: CLASSIFICATION

TARIFF NO.: 6204.62.4020

Mr. Bruce Schiller,
Vice President/General Manager
Fashion Logistics & Customs Brokerage
MSAS Global Logistics, Inc.
10205 N.W. 19th Street, Suite 101
Miami, FL 33172

RE: The tariff classification, status under the North American Free Trade Agreement (NAFTA), Article 509, and country of origin determination of womenÂ’s woven trousers from Mexico; 19 CFR 102.21(c)(2); tariff shift

Dear Mr. Schiller:

In your letter dated May 19, 1999, you requested a ruling on the status of womenÂ’s woven trousers from Mexico under the NAFTA, as well as a country of origin determination.

CLASSIFICATION?tc "CLASSIFICATION"?

The submitted garment is a pair of womenÂ’s trousers constructed from 60% cotton, 40% polyester woven fabric.

The applicable tariff provision for the trousers will be 6204.62.4020, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for womenÂ’sÂtrousersÂof cotton. The general rate of duty will be 17.2 percent ad valorem.

The trousers fall within textile category designation 348. Based upon international textile trade agreements products of Mexico are subject to quota and the requirement of a visa. If the garment qualifies under the NAFTA, it will not be subject to quota or the requirement of a visa.

The designated textile and apparel categories and their quota and visa status are the result of international agreements that are subject to frequent renegotiations and changes. To obtain the most current information, we suggest that you check, close to the time of shipment, the U.S. Customs Service Textile Status Report, an internal issuance of the U.S. Customs Service, which is available at the Customs Web Site at WWW.CUSTOMS.USTREAS.GOV. In addition, the designated textile and apparel categories may be subdivided into parts. If so, visa and quota requirements applicable to the subject merchandise may be affected and should also be verified at the time of shipment.

NAFTA DETERMINATION?tc "NAFTA DETERMINATION"?

Two scenarios for the production of the trousers were provided.

SCENARIO I?tc "SCENARIO I"?
1. Cotton/Polyester blended yarn will be produced in the U.S. 2. Fabric from the above yarn will be woven in the U.S. 3. The woven fabric will be sent to Mexico, where it will be cut into component parts and assembled by sewing. Trim items, such as labels, thread, etc. will be of U.S. origin 4. Trousers will be pressed, finished, and packaged into poly bags in Mexico 5. Trousers will be sent to El Salvador where they will be sorted into specific orders and shipped to the U.S. They will not be removed from the poly bags in El Salvador.

SCENARIO II?tc "SCENARIO II"?
The processes in Scenario II will be the same, except that the yarn in step 1 above will be of non-U.S. and non-NAFTA origin.

Under Scenario I, each of the non-originating materials used to make the trousers has satisfied the changes in tariff classification required under HTSUSA General Note 12(t)/62.28. The trousers will be entitled to a Free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements.

Under Scenario II, the merchandise does not qualify for preferential treatment under the NAFTA because one or more of the non-originating materials used in the production of the goods will not undergo the change in tariff classification required by General Note 12(t)/.28, HTSUSA. Specifically, the yarn imported from outside the NAFTA territory does not undergo the specified change in tariff classification. These garments may, however, qualify for a preferential duty rate under the Tariff Preference Levels defined in the HTSUSA, section XI, additional U.S. note 3(b), provided that they are not among the exceptions listed in additional U.S. note 3(d). Since the garments are cut and sewn in Mexico, they would qualify for the reduced rate up to the quantity specified in note 3(g) provided that the imported merchandise is accompanied by a Certificate of Eligibility.

COUNTRY OF ORIGIN - LAW AND ANALYSIS:

On December 8, 1994, the President signed into law the Uruguay Round Agreements Act. Section 334 of that Act (codified at 19 U.S.C. 3592) provides new rules of origin for textiles and apparel entered, or withdrawn from warehouse, for consumption, on and after July 1, 1996. On September 5, 1995, Customs published Section 102.21, Customs Regulations, in the Federal Register, implementing Section 334 (60 FR 46188). Thus, effective July 1, 1996, the country of origin of a textile or apparel product shall be determined by sequential application of the general rules set forth in paragraphs (c)(1) through (5) of Section 102.21.

Paragraph (c)(1) states that "The country of origin of a textile or apparel product is the single country, territory, or insular possession in which the good was wholly obtained or produced." As the subject merchandise is not wholly obtained or produced in a single country, territory or insular possession, paragraph (c)(1) of Section 102.21 is inapplicable.

Paragraph (c)(2) states that "Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1) of this section, the country of origin of the good is the single country, territory, or insular possession in which each of the foreign materials incorporated in that good underwent an applicable change in tariff classification, and/or met any other requirement, specified for the good in paragraph (e) of this section:"

Paragraph (e) in pertinent part states that "The following rules shall apply for purposes of determining the country of origin of a textile or apparel product under paragraph (c)(2) of this section":

HTSUS Tariff shift and/or other requirements

6201–6208 (1) If the good consists of two or more component parts, a change to an assembled good of heading 6201 through 6208 from unassembled components, provided that the change is the result of the good being wholly assembled in a single country, territory, or insular possession.

(2) If the good does not consist of two or more component parts, a change to heading 6201 through 6208 from any heading outside that group, except from heading 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408, 5512 through 5516, 5602 through 5603, 5801 through 5806, 5809 through 5811, 5903, 5906 through 5907, and 6217, and subheading 6307.90, and provided that the change is the result of a fabric-making process.6204.62.4020

The trousers consist of two or more parts, and are assembled in a single country, that is, Mexico, as per the terms of the tariff shift requirement, country of origin is conferred in Mexico. This analysis applies to both Scenario I and Scenario II.

HOLDING:

The country of origin of the trousers is Mexico. Based upon international textile trade agreements products of Mexico that do not qualify under the NAFTA are subject to quota and the requirement of a visa.

The holding set forth above applies only to the specific factual situation and merchandise identified in the ruling request. This position is clearly set forth in section 19 CFR 177.9(b)(1). This sections states that a ruling letter, either directly, by reference, or by implication, is accurate and complete in every material respect.

This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 C.F.R. 181), as well as Part 177 of the Customs Regulations (19 C.F.R. 177). Should it be subsequently determined that the information furnished is not complete and does not comply with 19 CFR 177.9(b)(1), the ruling will be subject to modification or revocation. In the event there is a change in the facts previously furnished, this may affect the determination of country of origin. Accordingly, if there is any change in the facts submitted to Customs, it is recommended that a new ruling request be submitted in accordance with 19 CFR 177.2.

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 Angela De Gaetano at 212-637-7029.

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.

Sincerely,

Robert B. Swierupski

Previous Ruling Next Ruling

See also: