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HQ 959035




April 5, 1996
CLA-2 RR:TC:TE 959035 jb

CATEGORY: CLASSIFICATION

K. M. Oh
Sam Jung Hwagong Co., Ltd.
1594-7, Bongchun-Dong, Kwanak-Ku
C.P.O. Box 2125
Seoul, Korea

RE: Country of origin determination for a baseball cap; 19 CFR most important assembly

Dear Mr. Oh:

This is in reply to your letter dated March 14, 1996, requesting a country of origin determination for a baseball cap which will be imported into the United States sometime on or after July 1, 1996. A sample was submitted to this office for examination.

FACTS:

The submitted merchandise consists of a baseball cap composed of either 100 percent cotton or 65 percent cotton and 35 percent polyester fabric. The manufacturing operations are as follows:

Scenario A

Korea-
material laminated material cut

Vietnam-
complete assembly

Scenario B

Korea-
material laminated material cut

Vietnam-
sewing each part separately: peak, crown, sweatband

Korea-
assemble peak and crown with sweatband and plastic adjustable back trimming blocking packing

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 Section 334 of that Act provides new rules of origin for textiles and apparel entered, or withdrawn from warehouse, for consumption, on and after July 1, 1996.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, in either Scenario A or B, 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 of the 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 (1) If the good consists of two or more components, a change to subheading
6505.90 from any other heading, provided that the change is the result of the good being wholly assembled in a single country, territory, or insular possession.

The subject baseball cap is classifiable in subheading 6505.90.2060, HTSUSA. In scenario A the merchandise is completely assembled in Vietnam. As the classification of this merchandise complies with the requisite tariff shift rule for subheading 6505.90, paragraph (c)(2)(1) of Section 102.21 is applicable to scenario A.

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.

In remaining scenario B, assembly occurs in two countries. Thus, as the merchandise is neither knit nor wholly assembled in one country, paragraph (c)(3) is not applicable.

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 scenario B, assembly occurs in both Vietnam and Korea. It is the opinion of this office that the assembly in Vietnam, where each component is sewn separately, that is, the peak, the crown, and the sweatband, constitutes the most important assembly.

HOLDING:

In scenario A the country of origin of the subject baseball cap is Vietnam.

In scenario B the country of origin of the subject baseball cap is Vietnam.

This ruling is issued pursuant to the provisions of Part 177, Customs Regulations (19 CFR Part 177). If the specific factual situation is not as described above, this ruling may not be valid. In such an event, it is recommended that a new ruling request be submitted.

Sincerely,

John Durant, Director
Tariff Classification Appeals
Division

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