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HQ 959047




May 17, 1996
CLA-2 RR:TC:TE 959047 jb

CATEGORY: CLASSIFICATION

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

RE: Country of origin determination for jacket and coats; 19 CFR process

Dear Mr. Fang:

This is in reply to your letter dated February 23, 1996, requesting a country of origin determination for 13 garments. As the garments were too numerous to discuss in one ruling, separate ruling letters will be issued to you addressing particular garments. This ruling letter will concern itself only with garments 11 through 13, that is, a jacket and two coats. You state that this merchandise will be imported into the United States sometime on or after July 1, 1996.

FACTS:

The subject merchandise consists of a women's 100 percent polyester woven jacket with a 100 percent cotton lining, and two women's 100 percent polyester woven coats with 100 percent polyester linings. The manufacturing operations for the each garment is as follows:

WOMEN'S JACKET

Country B

(a) cutting of all component pieces;
(b) collar assembled;
(c) front panels, each with zipper, lining panel and side pocket sewn;
(d) back panel with darts and lining panel sewn; (e) sleeve panels, each with lining panel and sleeve strap sewn; side seams not sewn together;
(f) cuffs assembled.

Country A

- all component pieces (b) through (f) are assembled together.

WOMEN'S COATS

Scenario I

Country B

(a) cutting of all component pieces;
(b) collar is assembled;
(c) front panels with facing and with one pocket sewn onto each panel;
(d) back panel formed by two separate fabrics and with back yoke; bottom vent sewn;
(e) complete lining, with front and back lining panels sewn together;
(f) sleeve panels sewn with plackets; side seams not sewn together;
(g) cuffs assembled.

Country A

- all component pieces (b) through (g) are assembled together.

Scenario II

Country B

(a) cutting of all component pieces;
(b) collar is assembled;
(c) front panels with facing and with one pocket sewn onto each panel;
(d) back panel formed by two separate fabrics and with back yoke sewn;
(e) complete lining, with front and back lining panels sewn together;
(f) sleeve panels formed by two separate fabrics with plackets; side seams not sewn together;
(g) cuffs assembled.

Country A

- assembly of the outer shell of the garment, that is joining together component pieces (b) through (d), and (f) and (g).

Country B

- joining together the outer shell of the garment and the lining.

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." In the case of the subject merchandise, as neither the jacket nor the coats are 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 jacket and coats are classified in heading 6202, Harmonized Tariff Schedule of the United States Annotated (HTSUSA). 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 assembly for the subject merchandise occurs in both Country A and Country B, the jacket and coats are not wholly assembled in a single country. Accordingly, Section 102.21(c)(2) is inapplicable.

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 is 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". It is the opinion of this office that in the case of the jacket, the assembly of the front panels with zipper to the lining panels, the assembly of the back panel with darts to the lining panel, and the assembly of the sleeve panels each with a lining panel, in Country B, constitutes the most important assembly. In the case of the coat in scenario I, the assembly of the front panels with facing, the back panel with yoke, and the complete lining with front and back lining panels sewn together, in Country B, constitutes the most important assembly. In the case of the coat in scenario II, the assembly of the front panels with facing and with one pocket sewn onto each panel, the back panel formed by two separate fabrics and with back yoke sewn, the complete lining with front and back lining panels sewn together, the sleeve panels formed by two separate fabrics with plackets, and the joining together of the outer shell of the garment and the lining in Country B, constitutes the most important assembly.

HOLDING:

The country of origin of the subject jacket is Country B.

In scenario I the country of origin of the subject coats is Country B.

In scenario II the country of origin of the subject coats is Country B.

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

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