CBP Issues Notice on Revised HTS Chapter 61 "Note 6" Which is Used for China Knit Shirt/Blouse Quota Exclusion

(Heading 6110 pertains to sweaters, pullovers, sweatshirts, waistcoats (vests) and similar articles. See ITT's Online Archives or 02/15/06 news, 06021505 for earlier BP summary on this amended note.)

Amended Note is Retroactive to January 1, 2006

According to CBP, amended Note 6 is retroactive to January 1, 2006 and reads as follows:

For the purposes of statistical reporting under heading 6110, the term "knit to shape" means garments knit to shape on flat-knitting machines, having a stitch count exceeding 9 stitches per 2 centimeters, but less than or equal to 18 stitches per 2 centimeters, measured on the outer surface of the fabric, in the direction in which the stitches are formed. For purposes of this statistical note, in the instances where both knit and purl stitches are usually counted, the purl stitches will be disregarded, and only the knit stitches on the outer surfaces¹ of the fabric will be counted. All of the garment's components, which include, but are not limited to, collars, plackets, cuffs, waistbands and pockets, are knit to shape. All of the components are assembled by looping and linking, including the side seams.

¹CBP notes that the last s in 'surfaces' is a typographical error which will be corrected in the upcoming supplement to the 2006 HTS.

CBP Identifies Two Changes in Amended Note

Purl stitches disregarded for rib knit fabric, etc. CBP states that there are two changes in amended Note 6. The first change indicates that in instances where both knit and purl stitches are counted, purl stitches will be disregarded in determining the stitch count of a garment for purposes of Note 6.

According to CBP, this is different from the way stitches are counted for the purposes of Chapter 61, Note 4 and Chapter 61, Statistical Note 3.

For Note 6, only purl stitches on the outer surface are disregarded. For example, if a rib knit fabric is counted, only the knit stitches on the outer surface are to be counted.

Reference to further cutting or trimming eliminated. The second change eliminates the reference to further cutting or trimming from Note 6. CBP explains that this change was made to permit trimming the shoulder slope and trimming waste yarns.

To the extent that lines of demarcation are permitted, CBP states that cutting may also be done along those lines. However, all components must still be considered knit to shape, and no other cutting to shape of the components is permitted.

All components must still be assembled by linking and looping, including the side seams, shoulder seams, collars, cuffs, plackets, waistbands, and pockets. If components are not linked and looped but only sewn, they will not meet the requirements of this statistical note and will not be exempt from quota.

Note 6 tariff numbers. According to CBP, garments meeting the requirements of Note 6 are classified under the following HTS numbers:

1. 0.20.1026 6110.20.1031 6110.20.2067
2. 0.20.2077 6110.30.2051 6110.30.2061
3. 0.30.3051 6110.30.3057 6110.90.9067
4. 0.90.9071 6110.90.9079 6110.90.9081

China origin garments not meeting the requirements of Note 6 are not classifiable in any of the HTS subheadings listed above and are subject to quota.

FAQs to be updated in future. CBP notes that its llst of Frequently Asked Questions (FAQs) on the China Memorandum of Understanding (MOU) for the 2006 - 2008 quotas on certain China origin textiles and apparel, that is posted to CBP's website, will be updated in the future to include questions and answers regarding the Note 6 quota exemption for certain knit to shape garments.

CBP contact: Jacqueline Sprungle (202) 344-2277

CBP TBT-06-003, dated 02/15/06, available at http://www.cbp.gov/linkhandler/cgov/import/textiles_and_quotas/tbts/tbt2006/tbt_06_003.ctt/tbt_06_003.doc