H332383

HQ H332383 October 16, 2023 OT:RR:CTF:VS H332383 RB CATEGORY: Classification Sandra Tovar CST, Inc. 500 Westpark Drive Suite 230 Peachtree City, GA 30269 RE: DR-CAFTA Preference Eligibility of Waterproof Rubber Boots for Children Dear Ms. Tovar: This is in response to your correspondence, dated May 1, 2023, in which you request a ruling on the eligibility of Hunter-brand rubber children’s boots for preferential tariff treatment under the Dominican Republic-Central America-United States Free Trade Agreement (“DR-CAFTA”). You indicate the merchandise will be imported through the Port of Chicago. Your request, submitted as an electronic ruling request, was forwarded to this office from the National Commodity Specialist Division for response. FACTS: The product at issue, style KFT5094RMA, referred to as the “Pink Fizz” model of child’s waterproof boot, is composed of a rubber sole and rubber upper. The merchandise is a closed-toe boot that extends to the mid-calf, covering the ankle but falling below the knee. The boot is constructed from a molded upper and outer sole made from rubber and is lined with a polyester textile. We note that this office previously issued HQ H329045, dated April 12, 2023, which concerned the eligibility of the same product for duty-free treatment under DR-CAFTA. In the instant request, it is claimed that additional raw materials will be sourced from the DR-CAFTA region. You claim that the boots are classified under subheading 6401.92.9060, Harmonized Tariff Schedule of the United States (“HTSUS”), which provides for “waterproof footwear with outer soles and uppers of rubber or plastics, the uppers of which are neither fixed to the sole nor assembled by stitching, riveting, nailing, screwing, plugging or similar processes: other footwear: covering the ankle but not covering the knee: other: other: other.” In HQ H329045, dated April 12, 2023, CBP confirmed this classification. You state that the boot will be manufactured at an unrelated facility in the Dominican Republic. In support of your request, you have provided a bill of materials, which lists each of the inputs and components involved in the manufacture of the subject merchandise as well as the country of origin, tariff classification, and per-unit cost for such components. Material Classification Country of Origin Cost per unit  Rubber – used for quarter and vamp 4002.99.00 Guatemala $1.297  Cement 3506.99.00 Dominican Republic $0.373  Thread 5401.10.00 Dominican Republic $0.194  Vamp lining – polyester knit 6006.32.00 China $0.606  Vamp reinforcement – rubber 4002.99.00 Guatemala $0.015  Quarter reinforcement – rubber 4002.99.00 Guatemala $0.017  Backstay reinforcement – rubber 4002.99.00 Guatemala $0.019  Insole 6406.90.30 China $0.299  Outsole – rubber 4002.99.00 Dominican Republic $1.792  Midsole – rubber 4002.99.00 Guatemala $0.210  Waterproof midsole 4002.99.00 Guatemala $0.297  Lacquer Not provided Dominican Republic $0.231  Latex glue 3505.00.00 Guatemala $0.254  Shalf logo 4016.99.60 Dominican Republic $0.187  Outsole logo 4016.99.60 Dominican Republic $0.062  Sock logo 4908.10.00 China $0.074  Lining label 4908.10.00 China $0.053  Oil 2710.19.90 Dominican Republic $0.495  Inner Box (packaging)` 4819.20.90 China $0.541  Carton (packaging) 4819.20.90 Dominican Republic $0.626  UCC Label 4908.90.00 China $0.127  Packing tissue paper 4823.20.00 Dominican Republic $0.189  Box label 4911.99.80 China $0.064  UPC label 4911.99.80 China $0.003  Hang tag 4821.10.40 China $0.081  Seal tape 5806.20.00 Dominican Republic $0.011  Micro-Pak 3812.20.00 Dominican Republic $0.053  Outsole Size Marking Sticker Not provided Dominican Republic $0.012  Clapboard Not provided Dominican Republic $0.042  Cardboard 4819.20.90 Dominican Republic $0.042  Based on the information provided, you state that the total value of materials, per unit, produced within DR-CAFTA countries is $6.418. The amount of materials, per unit, produced outside of DR-CAFTA is $2.135. You state that the total adjusted value of each unit is $11.35. You describe the manufacturing process as follows: The rubber base, consisting of rubber block, is imported to the Dominican Republic from Guatemala in raw block form; The rubber is mixed with other chemicals purchased from China or locally in the Dominican Republic, to prepare the rubber for further processing; The rubber material is processed through several calendaring machines of varying sizes. The machines utilize hard pressure rollers to smooth the rubber into sheets as well as to obtain the desired texture and finish; Rubber sheets are cut into pieces by an operated press cutting machine; Rubber outsoles are pressed and formed in a heated mold; Chinese-origin polyester fabric is cut and stitched to create the sock lining; The sock lining is mounted in a last and cement glue is applied; Rubber pieces are mounted and cemented in the last with the lining on a rotary assembly line. The following rubber pieces are applied in the line: quarter or vamp reinforcement, backstay or heel reinforcement, midsole, vamp, outer sole, back shaft strip, top edge, lower foxing edge, and logo; Lacquer finish oil is sprayed on the boot; The boot is placed in an oven to be vulcanized; The boot is removed from the last after vulcanization; The boot is placed in the finishing and packing line. The following components are added at this point: heat transfer labels, insole, tags, cardboards supports, wrapping papers, size labels, adhesive labels, shoe box, and carton box; The boots, now complete and packaged, are stored and ready to be shipped. ISSUE: Whether the rubber children’s boots are eligible for preferential tariff treatment under DR-CAFTA. LAW AND ANALYSIS: DR-CAFTA was signed on August 5, 2004, and includes as parties the United States, the Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, and Costa Rica. The provisions of DR-CAFTA were adopted by the United States in the Dominican Republic-Central America-United States Free Trade Agreement Implementation Act, Public Law 109-53 (2005). The regulations for DR-CAFTA are set forth in 19 C.F.R. § 10.581 et seq. General Note 29, HTSUS, sets forth the rules of origin for DR-CAFTA. General Note 29(b), HTSUS, states, in pertinent part: For the purposes of this note, subject to the provisions of subdivisions (c), (d), (m) and (n) thereof, a good imported into the customs territory of the United States is eligible for treatment as an originating good under the terms of this note if— the good is a good wholly obtained or produced entirely in the territory of one or more of the parties to the Agreement; the good was produced entirely in the territory of one or more of the parties to the Agreement, and— each of the nonoriginating materials used in the production of the good undergoes an applicable change in tariff classification specified in subdivision (n) of this note; or the good otherwise satisfies any applicable regional value content or other requirements specified in subdivision (n) of this note; and the good satisfies all other applicable requirements of this note; or the good was produced entirely in the territory of one or more of the parties to the Agreement exclusively from originating materials. The subject boots are not wholly obtained or produced entirely in the territory of one or more DR-CAFTA countries, and are therefore not eligible for treatment as an originating good pursuant to General Note 29(b)(i). Instead, pursuant to General Note 29(b)(ii), we look to the applicable tariff shift rule set forth in General Note 29(n). Accordingly, the applicable chapter rule for the subject boots, which are classified under subheading 6401.92.9060, HTSUS, stipulates: Chapter rule 1: Notwithstanding the tariff classification rules for goods of chapter 64 set forth be

DR-CAFTA was signed on August 5, 2004, and includes as parties the United States, the Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, and Costa Rica. The provisions of DR-CAFTA were adopted by the United States in the Dominican Republic-Central America-United States Free Trade Agreement Implementation Act, Public Law 109-53 (2005). The regulations for DR-CAFTA are set forth in 19 C.F.R. § 10.581 et seq. General Note 29, HTSUS, sets forth the rules of origin for DR-CAFTA. General Note 29(b), HTSUS, states, in pertinent part:For the purposes of this note, subject to the provisions of subdivisions (c), (d), (m) and (n) thereof, a good imported into the customs territory of the United States is eligible for treatment as an originating good under the terms of this note if—the good is a good wholly obtained or produced entirely in the territory of one or more of the parties to the Agreement;the good was produced entirely in the territory of one or more of the parties to the Agreement, and—each of the nonoriginating materials used in the production of the good undergoes an applicable change in tariff classification specified in subdivision (n) of this note; orthe good otherwise satisfies any applicable regional value content or other requirements specified in subdivision (n) of this note;and the good satisfies all other applicable requirements of this note; orthe good was produced entirely in the territory of one or more of the parties to the Agreement exclusively from originating materials. The subject boots are not wholly obtained or produced entirely in the territory of one or more DR-CAFTA countries, and are therefore not eligible for treatment as an originating good pursuant to General Note 29(b)(i). Instead, pursuant to General Note 29(b)(ii), we look to the applicable tariff shift rule set forth in General Note 29(n). Accordingly, the applicable chapter rule for the subject boots, which are classified under subheading 6401.92.9060, HTSUS, stipulates