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NY L84820

June 6, 2005

CLA-2-43:RR:NC:3:353 L84820


TARIFF NO.: 4303.10.0060

Mr. Rodney Ralston
UPS Supply Chain Solutions
One UPS Way
Champlain, NY 12919

RE: The tariff classification and status under the United States-Chile Free Trade Agreement (UCFTA), of shearling jackets from Chile.

Dear Mr. Ralston:

In your letter dated May 2, 2005, on behalf of I.T.A. Ltd, you requested a ruling on the status of shearling jackets from Chile under the UCFTA.

The merchandise being imported is men’s and women’s shearling jackets. The manufacturing and processing of the jackets is as follows:

Dressed sheepskin from Spain is shipped to Chile In Chile the sheepskin is cut to shape and sewn into men’s and women’s shearling jackets. The jackets are bulk packed and shipped to Canada The bulk packed jackets arrive in Canada wrinkled, where they are unpacked, inspected, vacuumed, pressed, placed on hangers and individually bagged before they are shipped to the United States

The applicable tariff provision for the men’s and women’s shearling jackets will be 4303.10.0060, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for articles of apparel and clothing accessories of furskin, other. The general rate of duty will be 4% ad valorem.

General Note 26(b), HTSUS, sets forth the criteria for determining whether a good is originating under the UCFTA. General Note 26(b), HTSUS, (19 U.S.C. § 1202) states, in pertinent part, that

For the purposes of this note, subject to the provisions of subdivisions (c), (d), (m) and (n) thereof, goods imported into the customs territory of the United States are eligible for treatment as originating goods of a UCFTA country under the terms of this note only if they–

(i) were wholly obtained or produced entirely in the territory of Chile or of the United States, or both;

(ii) were produced entirely in the territory of Chile or of the United States, or both, and--

(A) each nonoriginating material used in the production of the good undergoes an applicable change in tariff classification set out in subdivision (n) of this note; or

(B) the good otherwise satisfies any applicable regional value-content or other requirements set forth in such subdivision (n); and satisfies all other applicable requirements of this note and of applicable regulations; or

(iii) the good is produced entirely in the territory of Chile or of the United States, or both, exclusively from materials described in subdivisions (i) or (ii), above.

The goods described above meet the requirements of HTSUSA General Note 26(b)(ii)(A). However, General Note 26 (c)(iii) states “A good that has undergone production necessary to qualify as an originating good under this note shall not be considered an originating good if, subsequent to that production, the good undergoes further production or any other operation outside the territory of Chile or of the United States, other than unloading, reloading, or any other process necessary to preserve the good in good condition or to transport the good to the territory of Chile or of the United States.”

The merchandise does not qualify for preferential treatment under the UCFTA because the operations in Canada are more than unloading, reloading or any other process necessary to preserve the goods in good condition.

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 Kenneth Reidlinger at 646-733-3053.

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 and Border Protection, 1300 Pennsylvania Ave. N.W., (Mint Annex), Washington, D.C. 20229.


Robert B. Swierupski

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