Country of Origin of Men's and Boys' Trousers for NAFTA,Marking, Duty, and Quota Purposes; Article 509
Active· CBP ruling HQ 958538· Issued 1996-03-12
Ruling text
HQ 958538
MARCH 12, 1996
CLA-2: RR:TC:TE 958538 PR
CATEGORY: Classification
TARIFF NO.: 6203.43.4010; 6203.43.4020
Michael Pipitone
John F. Kilroy Co., Inc.
John F. Kennedy International Airport
Building 80, Suite 227
Jamaica, N.Y. 11430-1718
RE: Country of Origin of Men's and Boys' Trousers for NAFTA,
Marking, Duty,
and Quota Purposes; Article 509
Dear Mr. Pipitone:
This is in reply to your letter of August 1, 1995, on behalf
of Fiotex, in which you requested a ruling on the country of
origin, tariff classification, and duty rate applicable to men's
and boys' trousers. Our ruling on the matter follows.
FACTS:
The submitted sample is a man's woven polyester trousers.
The trousers have a waistband with belt loops, a fly front with a
zipper closure, two side seam pockets, and two rear pockets. It
is stated that piece goods made in Taiwan are shipped to Mexico
and there cut and sewn into 100 percent polyester finished
trousers. The linings, buttons, zippers, and other accessories
are produced in Mexico.
ISSUE:
The following issues have been presented and will be
addressed.
(1) Under which tariff classification do the imported goods
belong?
(2) What is the proper country of origin of the imported
goods?
(3) Are the imported goods entitled to any
preferential tariff treatment under the North American
Free Trade Agreement (NAFTA)?
LAW AND ANALYSIS:
(1) Imported goods are classifiable according to the
General Rules of Interpretation (GRI's) of the Harmonized Tariff
Schedule of the United States (HTSUSA). GRI 1 provides that for
legal purposes, classification shall be determined according to
the terms of the headings in the tariff and according to any
pertinent section or chapter notes. It appears that GRI 1
governs the classification of the subject merchandise.
Woven 100 percent polyester trousers which are not water
resistant are classifiable under the provision for men's or boys'
trousers, of synthetic fibers, in either subheading 6203.43.4010,
Harmonized Tariff Schedule of the United States Annotated
(HTSUSA), if for men, or in subheading 6203.43.4020, if for boys.
(2) Section 12.130, Customs Regulations (19 CFR 12.130),
sets out the criteria for determining the country of origin of
products for textile restraint purposes. It states that where a
good has been processed in more than one country, a textile or
textile article shall be the product of the country where it last
underwent a substantial transformation by means of substantial
processing. Applying this rule to the fact situation presented,
it is clear that Mexico is the country of origin for textile
restraint (quota) purposes.
The principles of Section 12.130 are applicable when
determining the country of origin of goods for most tariff
purposes (but not NAFTA). Following those principles, absent an
overriding statute such as NAFTA, Mexico is the country of origin
for duty purposes
In order to be considered a product of a NAFTA party (an
originating good) eligible for preferential duty treatment, a
good must meet the requirements of General Note 12, HTSUSA.
General Note 12(t)/62.16, requires that for polyester men's or
boys' trousers to be a NAFTA originating good, all processing
from the weaving of the fabric forward until the good becomes
classifiable in subheading 6203.43, must be done in a NAFTA
party. Under the given fact situation, the processing done in
Mexico does not qualify the trousers as NAFTA originating goods.
Section 102.20, Customs Regulations (19 CFR 102.20),
contains the tariff shift rules used to determine whether a good
should be marked as a product of a NAFTA country. The rule
applicable to trousers classifiable under subheading 6203.43 is
that they are the products of the country in which materials
classifiable outside chapter 62, HTSUSA, are processed into goods
classifiable under subheading 6203.43. In the instant fact
situation, Mexico is the country of origin for marking purposes.
(3) Annex 300-B to the NAFTA deals with textile and
apparel goods. Appendix 6.B.1(a) to Annex 300-B of the NAFTA
provides for a preferential tariff treatment for nonoriginating
goods of another Party (commonly called TPLs):
Each Party shall apply the rate of duty applicable to
originating goods set out in its Schedule to Annex 302.2,
and in accordance with Appendix 2.1, up to the annual
quantities specified in Schedule 6.B.1, in SME, to apparel
goods provided for in Chapters 61 and 62 that are both cut
(or knit to shape) and sewn or otherwise assembled in the
territory of a Party from fabric or yarn produced or
obtained outside the free trade area and that meet other
applicable conditions for preferred tariff treatment under
this Agreement.
Accordingly, pursuant to Appendix 6.B.1(a) to Annex 300-B,
it appears that under the given facts, the trousers are entitled
to preferential rates of duty when imported into the United
States, provided they do not exceed the annual quantity of such
goods allowed under Schedule 6.B.1. Appendix 6 to Annex 300-B
HOLDING:
The trousers are classifiable under the provision for men's
or boys' trousers, of synthetic fibers, in either subheading
6203.43.4010, Harmonized Tariff Schedule of the United States
Annotated (HTSUSA), if for men, or in subheading 6203.43.4020, if
for boys. They are considered to be products of Mexico for duty,
marking, and quota purposes. While not originating goods under
the NAFTA, they are elible for duty-free entry into the United
States under the NAFTA preferential rates of duty in accordance
with the provisions of Appendix 6.B.1(a) to Annex 300-B if, when
imported into the United States, they do not exceed the annual
quantity of such goods allowed under Schedule 6.B.1. If not
eligible for the preferential rate of duty, the goods would be
dutiable at the rate of 29.3 percent ad valorem.
On December 8, 1994, the President signed into law the
Uruguay Round Agreements Act. Section 334 of that Act provides
new rules of origin for textiles and apparel entered, or
withdrawn from warehouse, for consumption, on and after
July 1, 1996. On September 5, 1995, Customs published Section
102.21, Customs Regulations, in the Federal Register,
implementing 334 (60 F.R. 46188). Section 334 generally
provides, with certain exceptions, that the origin of textile
goods will be the country in which they are assembled.
Accordingly, based on the facts stated above, effective July 1,
1996, the country of origin of the shirts will be Mexico.
This ruling is issued pursuant to the provisions of Part 177
Customs Regulations (19 CFR Part 177) and sections 181.91 through
181.102, Customs Regulations (19 CFR 181.91 through 181.102). If
the specific factual situation is not as described above, this
ruling may not be valid. In such an event, it is recommended
that a new ruling request be submitted.
Sincerely,
John Durant, Director
Tariff Classification Appeals
Division
Source: rulings.cbp.gov — ruling 958538, retrieved 2026-10-12T05:30:50Z, republished verbatim. This digest is informational; only CBP issues binding rulings.