71. What is the TRADE AGREEMENT status of an unlined curtain panel of 100% acrylic, dyed, woven fabric that has undergone the following processing? CHINA: Solution dyed acrylic fiber is extruded and cut into staple fibers and shipped to the United States. (Heading 5503). UNITED STATES: The acrylic staple fibers are spun into an acrylic yarn. (Heading 5509); the acrylic yarns are woven into a 100% acrylic fabric and dyed. (Heading 5512); the 100% acrylic woven fabric is shipped to Honduras. HONDURAS: Polyester filament for sewing thread is extruded. (Heading 5402); The extruded sewing thread of polyester filament is formed. (Heading 5401); Fabric is cut and sewn; curtain panel is assembled and shipped to the U.S.
A) Qualifies under Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA) because the good is wholly obtained or produced in the territory of one or more of the parties to the Agreement.
B) Qualifies under DR-CAFTA because the good is produced entirely in the territory of one or more of the parties to the Agreement, and each of the non-originating materials used in the production of the good undergoes an applicable change in tariff classification and the good satisfies all other applicable requirements of General Note 29.
C) Qualifies under DR-CAFTA because the good satisfies the regional value content.
D) Does not qualify under DR-CAFTA because each of the non-originating materials does not undergo an applicable change in tariff classification.
E) Does not qualify under DR-CAFTA because the good undergoes an applicable change in tariff classification but does not satisfy the remainder of the tariff shift rule.
[bg_collapse view=”button-green” color=”#4a4949″ icon=”arrow” expand_text=”Show Answer and Citation” collapse_text=”Hide Answer and Citation” ]
The Answer is: B
Citation: HTSUS 6303.92.2010, General Note 29(a)(iii), General Note 29(b)(i), General Note 29(b)(ii), General Note 29(c)(i), General Note 29(m)(ii), General Note 29(n), Chapter 63.3, General Note 29(n), Chapter Rules 1 and 2
[/bg_collapse]