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HQ 084624


August 08, 1989

CLA-2:CO:R:C:G 084624 SR

CATEGORY: CLASSIFICATION

TARIFF NO.: 6505.90.6060

Ms. Charlotte Tsai
R & R Accessories, Inc.
10 West 32nd Street
New York, N.Y. 10001

RE: Quota category and Country of origin of baseball hats

Dear Ms. Tsai:

This is in reference to your letter dated April 17, 1989, requesting the proper quota category and country of origin of baseball hats under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA). A sample was submitted.

FACTS:

The merchandise at issue is a baseball hat. The material for the hat is cut in Taiwan but is assembled in either the Philippines, Thailand, or China. The hat is composed primarily of a knit man-made fiber material. The front panel of the crown is thick to allow for silk-screening, with several layers of fabrics. The hat has plastic interface linings and a plastic rear adjustable closure. The hat appears to consist of at least seven textile panels or strips, as well as other plastic, foam, textile, and metal parts.

ISSUE:

Whether substantial transformation has occurred for country of origin purposes.

LAW AND ANALYSIS:

The criteria for determining country of origin is stated in section 13.130(d) of the Customs Regulations (19 CFR 13.130(d)) as the following:

(d) Criteria for determining country of origin. The criteria in paragraphs (d) (1) and (2) of this section shall
be considered in determining the country of origin of imported merchandise. These criteria are not exhaustive. One or any combination of criteria may be determinative, and additional factors may be considered.
(1) A new and different article of commerce will usually result from a manufacturing or processing operation if there is a change in:
(i) Commercial designation or identity,
(ii) Fundamental character or
(iii) Commercial use.
(2) In determining whether merchandise has been subjected to substantial manufacturing or processing operations, the following will be considered:
(i) The physical change in the material or article as a result of the manufacturing or processing operations in each foreign territory or country, or insular possession of the U.S.
(ii) The time involved in the manufacturing or processing operations in each foreign territory or country, or insular possession of the U.S.
(iii) The complexity of the manufacturing or processing operations in each foreign territory or country, or insular possession of the U.S.
(iv) The level or degree of skill and/or technology required in the manufacturing or processing operations in each foreign territory or country, or insular possession of the U.S.
(v) The value added to the article or material in each foreign territory or country, or insular possession of the U.S., compared to its value when imported into the U.S.

Although parts for the merchandise at issue are cut or manufactured in Taiwan, they are assembled in another country. The country of origin would be the country where the articles are constructed. The sewing of the pieces changes the fundamental character of the item and gives it a new identity. Before the pieces are sewn together they have no use. No information was given about the manufacturing processes; however, the sewing of the pieces appears to be substantialy more complicated and time- consuming than cutting out the pieces of fabric. The article probably will have more value as a completed hat than as cut pieces of material.

The country of origin of the hat will be the country in which it is sewn. Baseball hats are provided for in
heading 6505, HTSUSA, as hats and other headgear, knitted, or made up from other textile fabric, whether or not lined or trimmed.

HOLDING:

The merchandise at issue is classifiable under subheading 6505.90.6060, HTSUSA, as hats, knitted, whether or not lined, other, of man-made fibers, knitted, not in part of braid, other. The textile category number is 659, the rate of duty is 39.7 cents per kilogram and 8 percent ad valorem. The hats are subject to textile quotas and duty from all three countries named: the Philippines, Thailand, or the People's Republic of China.

Due to the changeable nature of the statistical annotation (the ninth and tenth digits of the classification) and the restraint (quota/visa) categories, you should contact your local Customs office prior to importation of this merchandise to determine the current status of any import restraints or requirements.

Sincerely,

John Durant, Director

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