The tariff classification and status under the Caribbean Basin Trade Partnership Act (CBTPA) for women’s woven blouses

NY L80082 November 5, 2004 CLA-2-62:RR:NC:N3:360 L80082 CATEGORY: Classification TARIFF NO.: 6206.40.3030 Ms. Lynne McGowan Import/Export Manager Hamrick’s of North America 742 Peachoid Road Gaffney, SC 29341 RE: The tariff classification and status under the Caribbean Basin Trade Partnership Act (CBTPA) for women’s woven blouses Dear Ms. McGowan: In your letter dated October 4, 2004, you requested a classification ruling. The submitted sample will be returned as requested. Style 369B is a women’s blouse made from 100 percent polyester woven fabric. The garment features a pointed collar, short sleeves, a full front opening secured by six buttons and a hemmed bottom. The garment also features embroidered appliqués on the front panels and decorative fabric on the collar stand. The woven fabric is manufactured in the United States from U.S. yarn formed in the U.S. The decorative fabric used as indicated in the following scenarios, was imported from Taiwan. The embroidery thread used on the submitted garment was from Belarus. The sewing thread used was of U.S. origin. The buttons are from Taiwan. The blouse will be cut and assembled, including embroidery and appliqués, in a CBTPA beneficiary country, and then shipped to the U.S. You state that the value of all of the foreign findings and trimmings does not exceed 25% of the cost of the components of the assembled article. You have indicated that the production of the garment will be as noted above, with the following two possible variations. Scenario I: The decorative fabric will be used as the underside of the collar, the inner collar binding, and for a butterfly appliqué. Scenario II: The decorative fabric will be used only on the inner collar binding, and for a butterfly appliqué. In each case, you ask whether the decorative fabric will be considered a finding or trimming. The applicable subheading for style 369B will be 6206.40.3030, Harmonized Tariff Schedule of the United States (HTS), which provides for women’s and girls’ blouses, shirts and shirt-blouses, of man-made fibers. The duty rate will be 26.9 percent ad valorem. Style 369B falls within textile category designation 641. Based upon international textile trade agreements products of certain countries may be subject to quota and 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 Textile Status Report for Absolute Quotas, which is available at our Web site at www.cbp.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. Assuming the garment is manufactured in an eligible CBPTA country, and except for the findings and trimmings issue discussed below, the garment would qualify for treatment under 9820.11.06, HTS, which provides for: Apparel articles sewn or otherwise assembled in one or more such countries with thread formed in the United States from fabrics wholly formed in the United States and cut in one or more such countries from yarns wholly formed in the United States, or from components knit to shape in the United States from yarns wholly formed in the United States, or both (including fabrics not formed from yarns, if such fabrics are classifiable under heading 5602 or 5603 of the tariff schedule and are wholly formed in the United States), under the terms of U.S. note 2(a) to this subchapter. The decorative woven fabric made in Taiwan and used as indicated in the above scenarios is considered neither a finding nor a trimming as provided in U.S. note 3(b), chapter 98, subchapter 20. The fabric is used for structural purposes and is in fact a part of the collar in both instances. As to the fabric of the appliqué, assuming that it is produced in the manner described in Headquarters ruling 965883 issued on December 23, 2002, which you have cited, the fabric of the appliqué alone would be considered findings and trimmings. Accordingly, the garment produced under either of the above named scenarios would not qualify for preferential tariff treatment under the CBTPA. 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 Patricia Schiazzano at 646-733-3051. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division