April 2023 — Question 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.

• AQualifies 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.
• BQualifies 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.✓ CBP's answer
• CQualifies under DR-CAFTA because the good satisfies the regional value content.
• DDoes not qualify under DR-CAFTA because each of the non-originating materials does not undergo an applicable change in tariff classification.
• EDoes 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.