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HQ 958797




May 15, 1996
CLA-2 RR:TC:TE 958797 jb

CATEGORY: CLASSIFICATION

Richard M. Wortman, Esq.
Harold I. Loring, Esq.
Grunfeld, Desiderio, Lebowitz & Silverman LLP 245 Park Avenue
New York, NY 10167-0002

RE: Country of origin determination for men's woven trousers; 19 CFR ?102.21(c)(4); most important assembly

Dear Mr. Wortman and Mr. Loring:

This is in reply to your letter dated December 22, 1995, on behalf of Crystal Apparel Ltd., requesting a country of origin determination for men's woven trousers which will be imported into the United States sometime on or after July 1, 1996. Samples of the garment after assembly and the garment's constituent pieces before assembly were submitted to this office for examination.

FACTS:

The subject merchandise consists of men's woven trousers consisting of 100 percent cotton fabric. The trousers feature two side and two back pockets (either patch or inset), belt loops and a front zipper opening. The manufacturing operations are as follows:

PRODUCTION PLAN I:

China

- two front panels are cut;
- two rear panels are cut;
- pockets are cut;
- pockets are sewn on to the front panels and rear panels.

Hong Kong

- two front panels, with zipper attached, are joined; - two back panels are sewn together;
- front panel and back panel are joined;
- waistband and belt loops are cut to length and assembled; - waistband buttonholing and buttoning are performed.

Rear pocket buttonholing may occur in either China or Hong Kong.

PRODUCTION PLAN II:

China

- two front panels are cut;
- two rear panels are cut;
- two front panels, with zipper attached, are joined; - two rear panels are joined;
- pockets are sewn onto the front panels and rear panels;

Hong Kong

- two front panels and two rear panels are joined together; - waistband and belt loops are cut to length and assembled; - waistband buttonholing.

Rear pocket buttonholing may occur in either China or Hong Kong.

ISSUE:

What is the country of origin of the subject merchandise?

LAW AND ANALYSIS:

On December 8, 1994, the President signed into law the Uruguay Round Agreements Act. Section 334 of that Act provides new rules of origin for textiles and apparel entered, or withdrawn from warehouse, for consumption, on and after July 1, 1996. On September 5, 1995, Customs published Section 102.21, Customs Regulations, in the Federal Register, implementing Section 334 (60 FR 46188). Thus, effective July 1, 1996, the country of origin of a textile or apparel product shall be determined by sequential application of the general rules set forth in paragraphs (c)(1) through (5) of Section 102.21.

Paragraph (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 subject merchandise is not wholly obtained or produced in a single country, territory or insular possession, paragraph (c)(1) of Section 102.21 is inapplicable.

Paragraph (c)(2) states that "Where 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".

Paragraph (e) states that "The following rules shall apply for purposes of determining the country of origin of a textile or apparel product under paragraph (c)(2) of this section:"

6201-6208 (1) If the good consists of two or more component 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 subject merchandise is classifiable as men's woven trousers in heading 6203, Harmonized Tariff Schedule of the United States (HTSUS). Section 102.21(b)(6) defines wholly assembled as :

The term "wholly assembled" when used with reference to a good means that all components, of which there must be at least two, preexisted in essentially the same condition as found in the finished good and were combined to form the finished good in a single country, territory, or insular possession. Minor attachments and minor embellishments (for example, appliques, beads, spangles, embroidery, buttons) not appreciably affecting the identity of the good, and minor subassemblies (for example, collars, cuffs, plackets, pockets), will not affect the status of a good as "wholly assembled" in a single country, territory, or insular possession.

As the subject trousers are assembled in both China and Hong Kong, the good is not wholly assembled in a single country as per Section 102.21 (c)(2).

Paragraph (c)(3) states that "Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1) or (2) of this section":

(i) If the good was knit to shape, the country of origin of the good is the single country, territory, or insular possession in which the good was knit; or

(ii) Except for goods of heading 5609, 5807, 5811, 6213, 6214, 6301 through 6306, and 6308, and subheadings 6209.20.5040, 6307.10, 6307.90, and 9404.90, if the good was not knit to shape and the good was wholly assembled in a single country, territory, or insular possession, the country of origin of the good is the country, territory, or insular possession in which the good was wholly assembled.

As the subject merchandise is neither knit, nor wholly assembled in a single country, Section 102.21 (c)(3) is inapplicable.

Section 102.21 (c)(4) states, "Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1), (2) or (3) of this section, the country of origin of the good is the single country, territory or insular possession in which the most important assembly or manufacturing process occurred". In the case of the subject merchandise, assembly occurs in both China and Hong Kong. It is the opinion of this office that in production plan I, the most important assembly occurs in Hong Kong where the four trouser panels with zipper are joined, and the waistband and belt loops are cut to length and assembled. In production plan II, the most important assembly occurs in China where the two front panels are sewn together with the zipper attached, the two rear panels are sewn together, and the pockets are sewn onto the front and rear panels.

HOLDING:

In production plan I the country of origin of the subject men's trousers is Hong Kong.

In production plan II the country of origin of the subject men's trousers is China.

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 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, if there is any change in the facts submitted to Customs, it is recommended that a new ruling request be submitted in accordance with 19 CFR 177.2. Sincerely,

John Durant, Director
Tariff Classification Appeals
Division

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