HQ 562766

August 6, 2003

CLA-2 RR:CR:SM 562766 KSG

CATEGORY: Classification

TARIFF NO.: 9819.11.12

Arthur W. Bodek, Esq.

Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP

245 Park Avenue

33^rd^ Floor

New York, NY 10167-3397

RE: African Growth and Opportunity Act; subheading 9819.11.12;
foreign-origin elastic fabric

Dear Mr. Bodek:

This is in response to your letter of May 20, 2003, requesting a binding
ruling on behalf of Dominant Garments Fty. Ltd., concerning the
eligibility of certain women\'s trousers for duty-free treatment under
the African Growth and Opportunity Act ("AGOA"). A sample was included
with your ruling request.

**FACTS:**

This case involves women\'s trousers that are chief weight cotton or
man-made fiber. The fabric for the body of the trousers and the elastic
fabric are not from a sub-Saharan African beneficiary country. The
garment will feature an inserted elastic fabric waistband and inserted
elastic fabric cuffs. The elastic fabric will be imported into
Madagascar in rolls ranging from 48 yards to 144 yards in length. In
Madagascar, lengths will be cut from the rolls of elastic fabric which
will then be used for the waistband and cuffs. For the waistband, the
lengths to be cut will range from 20 inches to 40 inches. For the cuffs,
the lengths to be cut will range from 10 inches to 16 inches.

The trousers are cut, sewn and wholly assembled in Madagascar.

**ISSUE:**

Whether the women\'s trousers, manufactured as described above, are
eligible for duty free treatment under the AGOA.

**LAW AND ANALYSIS:**

Title I of the Trade and Development Act of 2000, Pub. L 106-200, 114
Stat. 251, May 18, 2000, referred to as the African Growth and
Opportunity Act ("AGOA"), seeks to promote trade opportunities between
the U.S. and the countries of sub-Saharan Africa. The AGOA provides for
the extension of duty-free treatment under the GSP to non-textile
articles normally excluded from GSP duty-free treatment that are not
import sensitive; and the entry of specific textile and apparel articles
free of duty. In order to implement the AGOA, Customs issued Interim
Regulations in T.D. 00-67, 65 Fed. Reg. 59668, which became effective
October 1, 2000. These interim regulations, which are found at 19 CFR
10.211 through 10.217, were amended by T.D. 03-15, 68 Fed Reg. 13820
(March 21, 2003). With regard to the textile and apparel provisions, the
law became effective on October 1, 2000, and shall remain in effect
through September 30, 2008. [See]{.underline} Sec. 112(f), AGOA.

The enhanced trade benefits provided by the AGOA are available to
eligible textile and apparel articles imported directly from a country
(1) that is designated as a beneficiary sub-Saharan African country and
(2) which the U.S. Trade Representative ("USTR") has determined by a
proclamation published in the Federal Register has satisfied the
requirements of the AGOA and therefore should be afforded the tariff
treatment authorized in such Act. Such countries shall be enumerated in
U.S. Note 1, Subchapter XIX, Chapter 98, HTSUS, whenever the USTR issues
a Federal Register notice as described herein. [See]{.underline}
Presidential Proclamation 7350, Annex, dated October 2, 2000, 65 Fed.
Reg. 59321.

Madagascar is a designated beneficiary sub-Saharan African country under
AGOA. [See]{.underline} U.S. Note 1, Subchapter XIX, HTSUS. Madagascar
is also designated as a lesser developed beneficiary country as provided
for in U.S. Note 2(d), Subchapter XIX, HTSUS.

Subheading 9819.11.12, HTSUS, provides for preferential tariff treatment
for articles imported from a designated beneficiary sub-Saharan African
country, as follows:

Apparel articles wholly assembled or knit-to-shape and wholly assembled,
or both, in one or more such lesser developed countries enumerated in
U.S. note 2(d) to this subchapter, subject to the provisions of U.S.
note 2 to this subchapter, regardless of the country of origin of the
fabric or the yarn used to make such articles, if entered during the
period beginning on the date announced in a [Federal
Register]{.underline} notice issued by the United States Trade
Representative and continuing through September 30, 2004,
inclusive......

U.S. Note 2, Subchapter XIX, Chapter 98, HTSUS, provides for a
quantitative restriction for apparel articles classified in subheading
9819.11.12.

Findings and trimmings are defined in U.S. Note 3(b), Subchapter XIX,
Chapter 98, HTSUS, to include elastic strips \"only if they are each
less than 2.54 cm in width and used in the production of brassieres.\"

Subheading 9819.11.12, HTSUS, allows the use of fabric or yarn that is
not of U.S.-origin or beneficiary country origin. Clearly, the elastic
fabric used in this case would not be considered a finding or trimming
as defined in U.S. Note 3(b). Therefore, the use of non-U.S. or
non-beneficiary country elastic fabric imported in rolls used to make
the waistband would not render the women\'s trousers ineligible for
classification in subheading 9819.11.12, HTSUS.

Based on the facts presented, the women\'s trousers would be entitled to
be classified in subheading 9819.11.12, HTSUS, subject to the
quantitative limits set forth in U.S. Note 2, Subchapter XIX, Chapter
98, HTSUS.

**HOLDING**:

Based on the information provided, the women\'s trousers are eligible
for duty free treatment under subheading 9819.11.12, HTSUS, subject to
the quantitative limitations set forth in U.S. Note 2, Subchapter XIX,
Chapter 98, HTSUS, and assuming that the garments are imported from a
designated beneficiary country directly into the customs territory of
the United States. This conclusion also assumes compliance with the
applicable Interim Regulations implementing the AGOA.

The holding set forth above applies only to the specific factual
situation and merchandise identified in the ruling request. This
position is clearly set forth in 19 CFR 177.9(b)(1). This section states
that a ruling letter is issued on the assumption that all of the
information furnished in connection with the ruling request and
incorporated in the ruling letter, either directly, by reference, or by
implication, is accurate and complete in every material respect.

Should it be subsequently determined that the information furnished is
not complete and does not comply with 19 CFR 177.9(b)(1), the ruling
will be subject to modification or revocation. In the event there is a
change in the facts previously furnished, this may affect the
determination of country of origin. Accordingly, if there is any change
in the facts submitted to Customs, it is recommended that a new ruling
request be submitted in accordance with 19 CFR 177.2.

A copy of this ruling letter should be attached to the entry documents
filed at the time the goods are entered. If the documents have been
filed without a copy, this ruling should be brought to the attention of
the Customs officer handling the transaction.

> Sincerely,
>
> Myles B. Harmon, Director
>
> Commercial Rulings Division