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HQ 559853




June 21, 1996

MAR-02 RR:TC:SM 559853 MLR

CATEGORY: MARKING

Ms. Karen Fogleman
Sportif USA, Inc.
Production Department
1415 Greg Street, #101
Sparks, Nevada 89431-5876

RE: Country of Origin Marking; Garments; Assembled in Mexico; U.S. fabric; 19 CFR 102.21; 19 CFR 134.43(e)

Dear Ms. Fogleman:

This is in reference to your letter of May 13, 1996, requesting a ruling concerning the country of origin marking pursuant to section 334 of the Uruguay Round Agreements Act for various garments assembled in Mexico from fabric cut and woven in the U.S. Additional information was submitted on May 28, 1996.

FACTS:

It is stated that Sportif USA, Inc. plans to assemble various styles of garments in Mexico using fabric and submaterials all of U.S.-origin. On May 28, 1996, you stated that the fabric for the garments is woven and/or knit in the U.S., and that the garment components are cut in the U.S. The following garments will be assembled in Mexico, and you have provided drawings and their respective classification under the Harmonized Tariff Schedule of the United States (HTSUS):

Two styles of men's pullovers classifiable under 6101.30.2010, HTSUS (100 percent polyester fleece knit pullovers, one with a crewneck and the other with a micro zip neck);
Eight styles of men's woven shirts classifiable under 6205.30.2070, HTSUS (a casual and classic style of micro fleece; short and long sleeve supplex with rounded pockets; short and long sleeve supplex with pleated pockets; and short and long sleeve supplex with color accents);
Eight styles of men's pants classifiable under 6203.43.4010 or 6103.43.1520, HTSUS, depending on whether the pants are of woven or knit fabric (micro fleece; two styles of cordura ripstop pants, one with lining; two styles of sanded supplex pants, one with zip-off legs; and three styles of supplex pants, one with a tunnel elastic band, another with zip-off legs, and the third with a full cut);
Five styles of men's woven shorts classifiable under 6203.43.4030, HTSUS (sanded supplex; two styles of supplex shorts, one with 6 pockets; cordura ripstop; and poly/cotton twill);
One style of women's woven supplex pants with zip-off legs classifiable under 6204.63.3510, HTSUS; and Three styles of women's woven shorts classifiable under 6204.63.3532, HTSUS (poly/cotton twill, and the others are supplex, one with 6 pockets).

All of the garments are currently being labeled "Assembled in Mexico of U.S. Components."

ISSUE:

Whether the garments described above may be marked "Assembled in Mexico of U.S. Components."

LAW AND ANALYSIS:

The marking statute, section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that unless excepted, every article of foreign origin imported in the U.S. shall be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article (or its container) will permit, in such a manner as to indicate to the ultimate purchaser in the U.S. the English name of the country of origin of the article. Congressional intent in enacting 19 U.S.C. 1304 was "that the ultimate purchaser should be able to know by an inspection of the marking on the imported goods the country of which the goods is the product. The evident purpose is to mark the goods so that at the time of purchase the ultimate purchaser may, by knowing where the goods were produced, be able to buy or refuse to buy them, if such marking should influence his will." United States v. Friedlaender & Co. Inc., 27 CCPA 297, 302, C.A.D. 104 (1940). Part 134, Customs Regulations (19 CFR Part 134), implements country of origin marking requirements and exceptions of 19 U.S.C. 1304.

For garments to be entered, or withdrawn from warehouse, for consumption, on and after July 1, 1996, the general rules set forth in paragraphs (c)(1) through (5) of section 102.21, Customs Regulations, which implement section 334 of the Uruguay Round Agreements Act will be used to determine the country of origin for country of origin marking purposes. See 60 FR 46188 (September 5, 1995). Section 102.21(c)(1), Customs Regulations {19 CFR 102.21(c)(1)}, states that "the country of origin of a textile or apparel product is the single country, territory, or insular possession in which the good was wholly obtained or produced." As the garments in this case are not wholly obtained or produced in a single country, territory, or insular possession, paragraph (c)(1) of section 102.21 is inapplicable.

Section 102.21(c)(2), Customs Regulations {19 CFR 102.21(c)(2)}, provides:

[w]here the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1) of this section, the country of origin of the good is the single country, territory, or insular possession in which each foreign material incorporated in that good underwent an applicable change in tariff classification, and/or met any other requirement, specified for the good in paragraph (e) of this section.

For purposes of this ruling, we are assuming that the classification provisions provided are correct. However, we strongly suggest that you verify these classification provisions with Customs, in particular for the pullovers as they appear to be classifiable under heading 6110, HTSUS, based upon the information submitted. The classification you have provided for the pullovers is heading 6101, HTSUS. We note that even if your classification is incorrect, the rule for headings 6101 and 6110 is the same, and, therefore, this will not alter the country of origin marking determination. The men's shorts and pants are classifiable under heading 6203, HTSUS. The women's pants and shorts are classifiable under heading 6204, HTSUS. The shirts are classifiable under heading 6205, HTSUS.

The rule set forth under paragraph (e) for the pullovers, classifiable under heading 6101, HTSUS, provides:

6101-6117 (1) If the good is not knit to shape and consists of two or more components parts, a change to an assembled good of heading 6101 through 6117 from unassembled components, provided that the change is the result of the good being wholly assembled in a single country, territory, or insular possession....

The rule set forth under paragraph (e) for the men's shorts and pants, classifiable under heading 6203, HTSUS, the women's shorts and pants, classifiable under heading 6204, HTSUS, and the shirts classifiable under heading 6205, HTSUS, provides:

6201-6208 (1) If the good consists of two or more components parts, a change to an assembled good of heading 6201 through 6208 from unassembled components, provided that the change is the result of the good being wholly assembled in a single country, territory, or insular possession....
The 100 percent polyester fleece pullovers satisfy the rule in section 102.21(e) for 6101-6117(1) because they are not knit to shape as they are cut and not formed in the U.S.; based upon the drawings, they consist of two or more component parts; and the component parts are changed to an assembled good of heading 6101 as a result of being wholly assembled in Mexico. Accordingly, pursuant to 19 CFR 102.21, the country of origin of the pullovers for country of origin marking purposes will be Mexico. The men's and women's shorts, pants, and shirts satisfy the rule in section 102.21(e) for 6201-6208(1) because, based upon the drawings, they each consist of two or more component parts, and the component parts are changed to an assembled good of heading 6203, 6204, or 6205, HTSUS, as a result of being wholly assembled in Mexico. Accordingly, pursuant to 19 CFR 102.21, the country of origin of the men's and women's shorts and pants, and shirts for country of origin marking purposes will be Mexico.

Additionally, it is stated that the fabric from which the various garments are assembled, is either woven or knit in the U.S. and cut to the garments' shape in the U.S. While you have not provided the tariff classification provision of the fabrics woven or knit in the U.S., it appears that the origin of the fabric to be used (i.e., 100 percent polyester, 100 percent cotton canvas, 100 percent nylon, or polyester/cotton fabric) will be the country where the fabric-making process occurs which is defined as "any manufacturing operation that begins with polymers, fibers, filaments (including strips), yarns, twine, cordage, rope, or fabric strips and results in a textile fabric." Accordingly, the fabric woven or knit in the U.S. will be considered to be of U.S.-origin.

We presume that the authority relied upon for currently marking the garments "Assembled in Mexico of U.S. Components" is 19 CFR 10.22, as it appears that the finished garments are eligible for the partial duty exemption under 9802.00.80, HTSUS, since the garments are assembled in Mexico from fabric made and cut in the U.S. and submaterial of U.S.-origin. Please note that the "Rules for Determining the Country of Origin of a Good for Purposes of Annex 311 of the North American Free Trade Agreement" (T.D. 96-48), published at 61 FR 28932, 28955 (June 6, 1996), has removed 19 CFR 10.22, applicable to goods entered, or withdrawn from warehouse, for consumption on or after August 5, 1996. Accordingly, beginning August 5, 1996, you may no longer rely upon 19 CFR 10.22 as authority for marking the goods "Assembled in Mexico of U.S. Components." However, this final rule also states that Customs has decided to retain 19 CFR 134.43(e), but in a modified form.

Effective August 5, 1996, section 134.43(e), Customs Regulations {19 CFR 134.43(e)}, will provide that:

[w]here an article is produced as a result of an assembly operation and the country of origin of such article is determined under this chapter to be the country in which the article was finally assembled, such article may be marked, as appropriate, in a manner such as the following:

(1) Assembled in (country of final assembly); (2) Assembled in (country of final assembly) from components of (name of country or countries of origin of all components); or
(3) Made in, or product of, (country of final assembly).

See 61 FR 28936 and 28957. Therefore, since all of the garments are produced as a result of an assembly operation and the country of origin of such garments is determined under 19 CFR 102.21 to be Mexico, and the components from which the garments are made are entirely of U.S.-origin, the garments may continue to be marked "Assembled in Mexico of U.S. Components" after August 5, 1996.

HOLDING:

On the basis of the information submitted, the country of origin of the garments will be Mexico for country of origin marking purposes pursuant to 19 CFR 102.21(c)(2) for all shipments to be entered, or withdrawn from warehouse, for consumption, on and after July 1, 1996. The garments may continue to be marked "Assembled in Mexico of U.S. Components" pursuant to 19 CFR 10.22; however, all garments entered, or withdrawn from warehouse, for consumption on or after August 5, 1996, may be so marked pursuant to 19 CFR 134.43(e).

The holding set forth above applies only to the specific factual situation and merchandise identified in the ruling request. This position is clearly set forth in section 177.9(b)(1), Customs Regulations {19 CFR 177.9(b)(1)}. This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, either directly, by reference, or by implication, is accurate and complete in every material respect. Should it be subsequently determined that the information furnished is not complete and does not comply with 19 CFR 177.9(b)(1), the ruling will be subject to modification or revocation. In the event there is a change in the facts previously furnished, this may affect the determination of country of origin. Accordingly, it is recommended that a new ruling request be submitted in accordance with section 177.2, Customs Regulations (19 CFR 177.2). A copy of this ruling letter should be attached to the entry documents filed at the time the goods are entered. If the documents have been filed without a copy, this ruling should be brought to the attention of the Customs officer handling the transaction.

Sincerely,

John Durant, Director
Tariff Classification Appeals

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