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NY E89333

November 26, 1999

CLA-2-64:RR:NC:TP:347 E89333


TARIFF NO.: 6406.10.05, 6406.10.10

Ms. Sonya K. Linger
Rocky Shoes & Boots Inc.
39 E. Canal Street
Nelsonville, OH 45764

RE: The tariff classification of footwear from Dominican Republic for duty-free treatment under U.S. Note 2(b), Subchapter II, Chapter 98, HTSUS.

Dear Ms. Linger:

In your letter dated November 2, 1999, you requested a tariff classification ruling for a formed upper.

You state that this inquiry is presented for a prospective importation of formed footwear uppers from Dominican Republic. Rocky Shoes & Boots will ship U.S. manufactured materials to “Five Star Enterprises,” the factory in Dominican Republic who will purchase the U.S. materials to manufacture the uppers. The material includes the leather, fabric, foam, and thread. You state that the only exception is the hardware/eyelets and D-rings, which are foreign materials that are imported into the United States.

The factory in Dominican Republic cuts the U.S. made materials into component parts and stitches them together. The hardware is attached and the upper is formed. The insole that is also cut from U.S. material made of textile man-made fiber is then “strobal” stitched to the formed upper.

The formed uppers will be sent to the U.S. where they will be fitted onto lasts, the lower portion of the upper will be roughed and then placed into an injection molding machine for the application of the polyurethane outer sole. Upon completion the shoes will be sent to the finishing mod where the upper and sole is cleaned. The shoelace is attached for closure and the foot bed is inserted. The completed shoes are then packed for distribution.

Section 222 of the Customs and Trade Act of 1990 (Public Law 101-382) amended U.S. Note 2, Subchapter II, Chapter 98, HTSUS, to provide for the duty-free treatment of articles (other than certain specified products) which are assembled or processed in a Caribbean Basin Economic Recovery Act (CBERA) beneficiary country (BC) wholly of fabricated components or ingredients (except water) of U.S. origin.

Note 2(b) provides as follows:

(b) No article (except a textile article, apparel article, or petroleum, or any product derived from petroleum, provided for in heading 2709 or 2710) may be treated as a foreign article, or as subject to duty, if-

(i) the article is---

(A) assembled or processed in whole of fabricated components that are a product of the United States, or

(B) processed in whole of ingredients (other than water) that are a product of the United States, in a beneficiary country; and

(ii) neither the fabricated components, materials or ingredients, after exportation from the United States, nor the article itself, before importation into the United States, enters the commerce of any foreign country other than a beneficiary country.

In order to qualify for Note 2(b) duty-free treatment, an eligible article must be assembled or processed in a BC entirely of components or ingredients that are a “product of” the U.S. You state that all the materials, except the eyelets/hardware and D-rings, are shipped from the U.S. to Dominican Republic to be finished into footwear. Since all materials shipped to Dominican Republic will not be “products of” the U.S., the shoes will not be entitled to duty-free treatment under Note 2(b). Therefore, HTS 9802.00.50 and 9802.00.80 does not apply in this instance.

The applicable subheading for the formed leather upper up to and including American men’s size 8 will be 6406.10.10, Harmonized Tariff Schedule of the United States (HTS), which provides for formed leather uppers, for other persons. The rate of duty will be 10% ad valorem. For American men’s sizes 8.5 and above, the applicable subheading will be 6406.10.05, HTS, which provides for formed leather uppers, for men, youths and boys. The rate of duty will be 8.5% ad valorem.

This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).

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 Richard Foley at 212-637-7089.


Robert B. Swierupski

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