HQ 958973 - Country of origin of various garments; Section 102.21(c)(4) - United States International Trade Commision Rulings

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HQ 958973

June 11, 1996
CLA-2 RR:TC:TE 958973 CAB

CATEGORY: CLASSIFICATION

Mr. Kenneth Fang
Textile Council of Hong Kong Limited
63 Tai Yip Street
3rd Floor
Kowloon Bay
Kowloon, Hong Kong

RE: Country of origin of various garments; Section 102.21(c)(4)

Dear Mr. Fang:

This is in response to your inquiry of February 23, 1996, requesting a country of origin determination for various garments. This determination is pursuant to the provisions of Section 102.21, Customs Regulations (19 CFR Section 102.21). Samples were submitted for examination. You propose numerous scenarios, however this ruling will answer the first three scenarios with the other issues being answered in separate rulings.

FACTS:

The three different scenarios are as follows:

The garment in question is a men's 100 percent woven cotton tailored shirt. The cutting of all the component pieces has been completed in Country B. The following assembly operations have been completed in Country B:

(b) front panels with front plackets and with one pocket (including pocket flap) sewn onto the left panel;

(c) back panel with dart and with common yoke sewn;

(d) sleeve panels with plackets, side seams not sewn together;

(e) cuffs.

The component pieces at (a) to (e) above are assembled together in Country A to form the garment.

The garment in question is a pair of men's 100 percent woven cotton denim jeans. The cutting of all the component pieces has been done in Country B. The following assembly operations have been done in Country B:

(a) front leg panels, each with one side pocket sewn; and with zipper sewn onto the left leg panel;

(b) waistband;

(c) back leg panels, each formed by two separate fabrics, with one back pocket sewn;

(d) front fly;

(e) belt loops.

The component pieces at (a) to (e) above are assembled together in Country A to form the garment.

The garment in question is a pair of men's 100 percent woven cotton trousers with 100 percent polyester lining. The cutting of all the component pieces has been done in Country B. The following assembly operations have been done in Country B:

(a) front leg panels with darts, each with one side pocket sewn; and with zipper sewn onto the left leg panel;

(b) front fly;

(c) waistband;

(d) belt loops;

(e) back leg panels with darts, each with one back pocket sewn of which the right pocket has a pocket flap;

(f) complete lining, with front and back lining panels sewn together and ready for being sewn onto the garment in Country A.

The component pieces at (a) through (f) above are assembled together in Country A to form the garment.

ISSUE:

What is the country of origin for the subject merchandise in accordance with Section 102.21, Customs Regulations?

LAW AND ANALYSIS:

Pursuant to the Uruguay Round Agreements Act, new rules of origin will be effective on textile 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 to determine country of origin. Thus, the country of origin of a textile 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 was wholly obtained or produced. Section 102.21(c)(2) provides for instances where the country of origin of a textile or apparel product cannot be determined under Section

Section 102.21(c)(2) provides, in pertinent part:

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) provides, in part:

Specific rules by tariff classification. 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.

(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 garments are classified in either Heading 6205 or Heading 6203 of the Harmonized Tariff Schedule of the United States Annotated (HTSUSA). Section 102.21(b)(6), which provides the definition for wholly assembled states:

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.

Since the garments at issue have been assembled in both Country A and Country B, Section 102.21(c)(2) is not applicable.

Section 102.21(c)(3) applies where the country of origin of a textile or apparel product cannot be determined pursuant to paragraph (c)(1) or (c)(2) and where the merchandise consists of either a good that was knit to shape in a single country, or (with an exception for goods of certain specifically enumerated headings) was wholly assembled in a single country. As the subject goods are neither knit to shape nor wholly assembled in a single country, Section 102.21(c)(3) is not applicable.

Section 102.21(c)(4) is the first multi-country rule and provides the following:

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 accordance with Section 102.21(c)(4), in all three manufacturing scenarios, the most important assembly occurs in Country A, as it is in this country that the majority of the garment is assembled to completion, discounting finishing operations and minor subassemblies as defined in Section

HOLDING:

The country of origin of the subject jeans, trousers, and shirt is Country A.

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,

John Durant, Director
Tariff Classification Appeals

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