The tariff classification and status under the North American Free Trade Agreement (NAFTA), of an infants’ swim diaper from Mexico; Article 509

NY F86889 May 17, 2000 CLA-2-61:RR:NC:TA:358 F86889 CATEGORY: Classification TARIFF NO.: 6111.30.5040 Mr. Jeffrey Berman Chesta Co. 11216 Pickerington Road N.W. Pickerington, OH 43147 RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of an infants’ swim diaper from Mexico; Article 509 Dear Mr. Berman: In your letter dated May 5, 2000, you requested a ruling on the tariff classification and status of an infant’s knitted swim diaper from Mexico under the NAFTA. The submitted sample, Style SWD-0505, is a knitted swim diaper. It consists of an outershell of 82% nylon, 18 % elastomeric Spanflex ™ fabric. The outershell is attached to a pieced interior consisting of nylon mesh lining and a terry knit cotton crotch. Bias binding, which is 50% cotton, 50% polyester completes the outershell perimeter. The sides of the diaper cover, which unfasten, are secured closed by VELCRO ™ and bias binding ties. All fabric, with the exception of the Spanflex ™, is produced in the United States. The Spanflex ™ is from Taiwan. You describe the manufacturing process as follows: Spanflex ™ material will import into the United States and duties paid in accordance with appropriate HTS number. The material will then be cut to size in what can be referred to as an outershell. The cut parts will then be exported to Mexico. In Mexico the balance of the swim diaper materials will be cut to size. The swim diaper will bear an origin marking “Made in Mexico”. There will also be a size label, the company RN number and a description of each material, all sewn in and permanently attached. The swim diaper will be sewn and packed for export to the United States. The applicable tariff provision for the knitted infant’s diaper cover will be 6111.30.5040, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for babies’ garments and clothing accessories, knitted or crocheted, of synthetic fibers, other, other. The general rate of duty is 16.4% ad valorem. The infant’s diaper cover falls within textile category designation 239. Based upon international textile trade agreements, products of Mexico in this category are not subject to quota or the requirements 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.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. The merchandise does not qualify for preferential treatment under the NAFTA because the non-originating material used in the production of the goods, Spanflex ™, will not undergo the change in tariff classification required by General Note 12(t)/61.35, HTSUSA. However, the swim diaper may be subject to a reduced rate of duty based upon Tariff Preference Levels (TPL) established in Section XI, Additional U.S. Note 3(c), up to the annual quantities specified in subdivision (g) ii of the Note. Since the swim diaper is both cut and sewn or otherwise assembled in the territory of a NAFTA party from fabric produced outside the territory of the NAFTA parties, it may be eligible for the preferential rate of FREE assuming completion of required documentation and up to specified annual quota limits. This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 C.F.R. 181). 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 Bruce Kirschner at 212-637-7079. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division