HQ 958968 - Country of Origin determination for knit hats, gloves and mittens; fabric knit in Taiwan; 19 CFR 102.21(c)(2); tariff shift - United States International Trade Commision Rulings

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HQ 958968

May 3, 1996

CLA-2 RR:TC:TE 958968 jb

CATEGORY: CLASSIFICATION

Dick Lin
Canonda Enterprise Co., Ltd.
6/F. No. 119, Chien Kuo N. Road
Sec. 2, Taipei
Taiwan, R.O.C.

RE: Country of Origin determination for knit hats, gloves and mittens; fabric knit in Taiwan; 19 CFR 102.21(c)(2); tariff shift

Dear Mr. Lin:

This letter is in response to your inquiry of February 8, 1996, requesting a clarification regarding the validity of HQ 957268, dated December 28, 1994, a country of origin determination for certain knit hats, gloves and mittens.

FACTS:

The merchandise at issue consists of knit hats, gloves and mittens made out of acrylic or wool yarn. The manufacturing process is as follows:

Taiwan

- knitting of goods in jacquard circular machines.

Vietnam

Hats

- separated piece by piece;
- overlock stitched;
- steam ironed;
- size fitted;
- a pompom is made up and attached;
- inspected.
Gloves/Mittens

- separated piece by piece;
-finger jointed;
- hand closed;
- cuffs are blindlinked;
- gloves/mittens turned inside out and brushed; - steamed;
- inspected.

Also in Vietnam, labels are then sewn inside the hats, gloves and mittens, J-hooks and hang tags are affixed and the finished articles are quality controlled before being packed and shipped to the United States.

In HQ 957268, the country of origin for this merchandise was determined to be Taiwan based on section 12.130 of the Customs Regulations (19 CFR 12.130). Section 12.130 held that a textile product that is processed in more than one country shall be a product of the country where it last underwent a substantial transformation by means of a substantial manufacturing or processing operation into a new and different article of commerce.

ISSUE:

What is the country of origin of the merchandise at issue?

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 Section 334 of that Act provides new rules of origin for textiles and apparel entered, or withdrawn from warehouse, for consumption, on and after July 1, 1996.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 (c)(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".

6505.90 (2) If the good does not consist of two or more components, a change to subheading 6505.90 from any other heading, except from heading 5007, 5111 through 5113, 5208 through 5212, 5407 through 5408, 5512 through 5516, 5602 through
5603, 5608, 5801 through 5804,
5806, 5808 through 5811, 5903, 5906 through 5907, and 6001 through 6002, and provided that the change is the result of a fabric-making process.

6101-6117 (3) If the good is knit to shape, a change to heading 6101 through 6117 from any heading outside that group, provided that the knit-to-shape components are knit in a single country, territory, or insular possession.

The subject knit hats are classifiable in subheading 6505.90, HTSUSA. The hats consist of the knit portion which constitutes the body of the hats and the pom pom which is made up and attached to the hats. General Rule (c) of Part 102.21 states that "Subject to paragraph (d) of this section, the country of origin of a textile or apparel product shall be determined by sequential application of paragraphs (c) (1) through (5) of this section and, in each case where appropriate to the specific context, by application of the additional requirements or conditions of ??102.12 through 102.19 of this part". Section 102.13, which sets out the De Minimis rule states, in relevant part:

(c) Foreign components or materials that do not undergo the applicable change in tariff classification set out in Chapter 50 through 63 of the Harmonized System shall be disregarded in determining the country of origin of the good if the total weight of those components or materials is not more than 7 percent of the total weight of the good.

It is the opinion of this office that the incorporation of the pom pom on to the hats meets the terms of the De Minimis rule. That is to say, we assume that in the case of the subject hats, the weight of the pom pom, in respect to the hats, is not more than 7 percent of the total weight of the good. As such, the pom pom is to be disregarded when determining country of origin. As the hats do not consist of two or more components and the change to subheading 6505.90 is a result of a fabric making process, the merchandise complies with the requisite tariff shift rule for subheading 6505.90. Accordingly, the country of origin of the hats is the country in which the fabric-making process occurs, that is, Taiwan.

The subject knit gloves and mittens are classifiable in heading 6116, HTSUSA. As the merchandise is knit in a single country, the country of origin of the subject gloves and mittens is the country in which the knit-to-shape components are knit in a single country, that is, Taiwan.

HOLDING:

The country of origin of the subject hats, gloves and mittens is Taiwan.

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, 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,

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