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NY K85578

May 26, 2004
CLA-2-61:RR:NC:TAB:354 K85578


TARIFF NO.: 6108.22.9020; 9802.00.80

Ms. Suzanne Ellers
1955 West Oak Circle
Marietta, GA 30062

RE: The tariff classification of knit panties from Costa Rica and eligibility of 9802.0080.

Dear Ms. Ellers:

In your letter dated April 22, 2004, you requested a tariff classification ruling.

Style 2544 is a women’s panty that has a center seamed knit lace-like front panel comprised of a 60% nylon 24% viscose 16% spandex openwork fabric. The rear panel is composed of 87% nylon 13% spandex finely knit fabric. The garment has a sewn-in cotton gusset and elasticized edging at the waist and leg openings.

You have indicated that country of origin for all of the fabrics, threads and elastics used in the garment is the United States with the exception of the lace-like front panel fabric, which is from Columbia. You have also indicated that all fabrics included in the manufacturing of this panty are cut and assembled in Costa Rica. Additionally, you have inquired whether or not the garment imported into the United States is eligible for 9802.00.80.

9802.00.80, HTS, provides a partial duty exemption for: Articles assembled abroad in whole or in part of fabricated components, the product of 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, such as cleaning, lubricating, and painting. All three requirements of subheading 9802.00.80, HTS, must be satisfied before a component may receive a duty allowance. An article entered under this tariff provision is subject to duty upon the full value of the imported article, less the cost or value of such U.S. components assembled therein, upon compliance with the documentary requirements of Section 10.24, Customs Regulations (19 C.F.R. 10.24). Section 10.14 (a) Customs Regulations [19 C.F.R. 10.14 (a)] states that the components must be in condition ready for assembly without further fabrication at the time of their exportation from the United States to qualify for the exemption. Components will not lose their entitlement to the exemption by being subjected to operations incidental to the assembly either before, during, or after their assembly with other components. Section 10.16(a) Customs Regulations (19 C.F.R. 10.16 (a)] provides that the assembly operation performed abroad may consist of any method used to join or fit together solid components. Operations incidental to the assembly process are not considered further fabrication operations if they are of a minor nature.

We find that that the cutting of the fabric in Costa Rica precludes consideration under HTS 9802.00.80. The panty does not meet all of the requirements of subheading 9802.00.80, HTSUS, and no allowance in duty may be made for the cost or value of the U.S. origin items as described above.

The applicable subheading for the panty will be 6108.22.9020, Harmonized Tariff Schedule of the United States (HTS), which provides for women’s or girls’ slips, petticoats, briefs, panties. . . and similar garments, knitted or crocheted: briefs and panties: of man made fibers: other, women’s.. The rate of duty will be 15.6 percent 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 Brian Burtnik at 646-733-3054.


Robert B. Swierupski

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