HQ 958930 - Country of origin determinations; girls' knit polo-style shirt; Section 102.21, Customs Regulations. - United States International Trade Commision Rulings

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HQ 958930

May 28, 1996
CLA-2 RR:TC:TE 958930 SK

CATEGORY: CLASSIFICATION

John M. Peterson
Arthur K. Purcell
Neville, Peterson & Williams
80 Broad Street
34th Floor
New York, N.Y. 10004

RE: Country of origin determinations; girls' knit polo-style shirt; Section 102.21, Customs Regulations.

Dear Messrs.:

This is in response to your inquiry of February 13, 1996, requesting a country of origin determination for a girls' knit polo-style shirt pursuant to Section 102.21, Customs Regulations. In your submission, you describe two different manufacturing scenarios used to produce the subject merchandise. Samples of the garment's constituent pieces were submitted to this office for examination.

FACTS:

The subject merchandise consists of a girls' 100 percent cotton knit polo-style shirt. The garment has a two-button partial front placketed opening, short sleeves with applied ribbed knit cuffs, flat knit collar and an embroidered flower on one of the front panels. You have presented this office with two different manufacturing scenarios by which the subject merchandise will be produced. They are described as follows:

SCENARIO 1
COUNTRY "A" OPERATIONS

1) Fabric formed;

2) Fabric cut into eleven component pieces;

3) Front panel embroidered with a flower design on left side of the chest;

4) Front and back panels of the shirt are attached by sewing together the shoulder seams with reinforcing shoulder tape;

5) Facing inserted in front placket and placket attached to front;

6) Buttons and button holes sewn to front placket;

7) Rib cuffs attached to sleeves;

8) Label sewn to back panel;

COUNTRY "B" OPERATIONS

1) Left and right sleeves attached to the shirt;

2) Left and right side seams sewn;

3) Collar attached;

4) Bottom hemmed;

5) Inspected, trimmed and packaged.

SCENARIO 2

The same as Scenario 1 except that the collar is attached in Country A instead of Country B.

ISSUE:

What is the country of origin for the girls' knit polo-style shirt in each of the two manufacturing scenarios presented?

LAW AND ANALYSIS:

Pursuant to the Uruguay Round Agreements Act, new rules of origin will be effective for textile or apparel products entered, or withdrawn from warehouse for consumption, on or after July 1, 1996. These rules were published in the Federal Register, 60 Fed. Reg. 46188 (September 5, 1995). Section 102.21, Customs Regulations (19 CFR Section 102.21), sets forth the general rules which determine country of origin. The country of origin of a textile or apparel product will be determined by a hierarchy of rules set forth in paragraphs (c)(1) through (c)(5) of Section 102.21.

Section 102.21(c)(1) sets forth the general rule for determining the country of origin of a textile or apparel product in which the good is wholly obtained or produced in a single country, territory, or insular possession.

Section 102.21(c)(2) provides for instances where the country of origin of a textile or apparel product cannot be determined under Section 102.21(c)(1). Section 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."

Section 102.21(c)(3) governs instances where the country of origin of a textile or apparel product cannot be determined pursuant to paragraphs (c)(1) or (c)(2) and where the subject merchandise consists of either a good that was knit to shape in a single country or, except for goods of certain specifically enumerated headings, if the good was not knit to shape and was wholly assembled in a single country.

Section 102.21, paragraph (6), defines "wholly assembled" as follows:

"[T]he 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."

Section 102.21(c)(4) provides:

"[W]here 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."

Section 102.21(c)(5) provides:

"[W]here the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1), (2), (3) of this section, the country of origin of the good is the last country, territory, or insular possession in which an important assembly or manufacturing process occurred."

In the manufacturing scenarios set forth above, Section 102.21(c)(1) does not provide the relevant country of origin analysis because the subject merchandise is not wholly obtained or produced in a single country.

The girls' cotton knit polo-style shirt is classifiable under subheading 6106.10, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for girls' cotton knit shirts. Accordingly, Section 102.21(c)(2) directs us to paragraph (e) of this section which states, in pertinent part, that origin is conferred in the following situations:

6101-6117 (1) If the good is not knit to shape and consists of two or more component 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.

(2) If the good is not knit to shape and does not consist of two or more component parts, a change to heading 6101 through 6117 from any heading outside that group, except from heading 5007,
5111 through 5113, 5208 through 5212, 5309 through 5311,
5407 through 5408, 5512 through 5516, 5806, 5809 through
5811, 5903, 5906 through 5907, and 6001 through 6002, and subheading 6307.90, and provided that the change is the result of a fabric-making process.

The subject garment is not knit to shape and consists of more than two component parts. Section 102.21(c)(2) is inapplicable, however, because the subject garment undergoes assembly in more than one country in both manufacturing scenarios presented to this office. Accordingly, our hierarchical application of Section 102.21(c) continues.

Section 102.21(c)(3) does not provide the relevant country of origin analysis inasmuch as the subject garments are not knit to shape goods and, as stated above, they did not undergo assembly in a single country, territory, or insular possession.

Section 102.21(c)(4), which looks to the country, territory, or insular possession in which the most important assembly or manufacturing process occurred as conferring origin, does not provide the determinative analysis in Scenario 1. In this instance, it is not possible to determine whether the most important assembly or manufacturing process takes place in Country A or Country B. Accordingly, we look to Section 102.21(c)(5) which states that the country, territory, or insular possession in which an important assembly or manufacturing process last occurred will be the country of origin. As the assembly operations performed in Country B transpire after those performed in Country A, Country B is the country of origin for the girls' shirt in Scenario 1.

In the case of Scenario 2, the most important assembly takes place in Country A as this is where the assembly of all the component pieces occurs except for the sewing of the side seams and attachment of the sleeves. Therefore, pursuant to Section 102.21(c)(4), Country A confers origin to the girls' shirt in Scenario 2.

HOLDING:

The country of origin of the girls' shirt in Scenario 1 is Country B pursuant to Section 102.21(c)(5).

The country of origin of the girls' shirt in Scenario 2 is Country A pursuant to Section 102.21(c)(4).

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

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