HQ 556799: Application for Further Review of Protest Number 2501-92-100022; GSP; Latex Gloves

Native CBP ruling rendition. Applicability is fact-specific; modification/revocation relationships and original publisher date are retained. Publisher sentinel year0001 means unknown date, not a historical legal adoption.

                            HQ 556799

                        October 20, 1992

CLA-2 CO:R:C:S 556799 RAH

CATEGORY:  Classification

TARIFF NO.: 4015.11.00002

District Director
U.S. Customs Service
880 Front St., Room 5-S-9
San Diego, California 92188

RE:  Application for Further Review of Protest Number
     2501-92-100022; GSP; Latex Gloves

Dear Sir:

     This is in response to your transmittal of June 10, 1992,
regarding Protest No. 2501-92-100022.

FACTS:

     The record reflects that the subject merchandise (rubber
surgical and medical gloves) were imported into the United States
from Mexico on November 13, 1991.  The three entries subject to
this protest were filed on November 12 an 13, 1991, and December
13, 1991.  The entry summaries list Malaysia ("MY") as the
country of origin of the merchandise.  The merchandise was
entered under subheading 4015.11.00002, Harmonized Tariff
Schedule of the United States (HTSUS).  

     One entry was liquidated on March 3, 1992, and two entries
were liquidated on March 6, 1992.  Protest number 2501-92-100022
was timely filed on April 16, 1992, contesting the classification
and liquidation of merchandise under subheading 4015.11.00.002,
HTSUS, at the rate of 3.7 percent ad valorem.

     The protestant claims that the merchandise is a product of
Malaysia and was imported into the United States from that
country under bond and merely repacked in Mexico in a maquiladora
plant.  The protestant further argues that the gloves are
eligible for duty-free treatment under the Generalized System of
Preference (GSP) because Malaysia is a GSP eligible country, and
100 percent of the value of the gloves (without the packing
material) was attributed to costs of materials and direct
processing in Malaysia. 

ISSUE:

     Whether latex gloves classified under subheading
4015.11.00.002, HTSUS, which are a product of Malaysia are
entitled to duty free treatment under the GSP.

LAW AND ANALYSIS:

     Under the GSP, eligible products which are the growth,
product, or manufacture of a designated beneficiary developing
country (BDC), may enter the U.S. duty-free if such products are
imported directly into the U.S. and the sum of 1) the cost or
value of the materials produced in the BDC, plus 2) the direct
costs involved in processing the eligible article in the BDC, is
equivalent to at least 35 percent of the appraised value of the
article upon its entry into the U.S.  19 U.S.C. 2463(b).  

       The GSP eligibility list contains a wide range of products
classifiable under approximately 3,000 different subheadings in
the HTSUS.  These items are identified either by an "A" or "A*"
in the "Special" subcolumn under column 1 of the HTSUS. 
Merchandise classifiable under a subheading designated in this
manner may qualify for duty-free entry if imported into the
United States directly from any of the designated BDCs. 
Merchandise may, however, be excluded from the exemption if there
is an "A*" in the "Special" column.   

     The uncontested country of origin of the merchandise in
question is Malaysia, which is a designated BDC.  See, General
Note 3(c)(ii)(A), HTSUS.  Moreover, the merchandise was entered
under subheading 4015.11.00.002, HTSUS.  General Note 3(c)(ii)(D)
of the 1991 HTSUS (effective at the time of the subject entry)
specifically excludes merchandise from Malaysia entered under
that subheading from receiving duty-free treatment under the GSP. 
Accordingly, the protest should be denied.  

HOLDING:

     Pursuant to General Note 3(c)(ii)(D), HTSUS, merchandise
from Malaysia entered under subheading 4015.11.10, HTSUS, is
specifically excluded from receiving duty-free treatment under
the GSP.  

                                   Sincerely,



                                   John Durant, Director