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HQ 959168




May 28, 1996

CLA-2 RR:TC:TE 959168 GGD

CATEGORY: CLASSIFICATION

TARIFF NO.: 6110.90.9040

Ms. Mary Bailey
Sears, Roebuck and Company
3333 Beverly Road
D/733IMP BC-205-A
Hoffman Estates, Illinois 60179

RE: Country of Origin and Classification Determinations for a Girl's Knit Sweater Vest; 19 CFR 102.21(c)(3); Knit-to-shape Good

Dear Ms. Bailey:

This letter is in response to your inquiry of March 25, 1996, concerning the country of origin and classification under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA), of a girl's knit sweater vest that will be imported into the United States on or after July 1, 1996. A sample was submitted with your inquiry.

FACTS:

The submitted sample is a girl's sleeveless knit sweater vest composed of 55 percent ramie and 45 percent cotton. The garment's back panel has approximately 5 stitches per 2 centimeters measured in the horizontal direction, and its front panels have open crochet work satisfying the Statistical Note 3, Chapter 61, provision for sweaters. The manufacturing processes are as follows: -2-

CHINA - knitting of front and back panels

HONG KONG - linking, finishing, and packaging

ISSUES:

1) What is the classification of the sweater vest?

2) What is the country of origin of the garment?

LAW AND ANALYSIS:

Classification under the HTSUS is made in accordance with the General Rules of Interpretation (GRI). Virtually all goods are classified according to the terms of the headings of the tariff schedule and any relative Section or Chapter Notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRI may then be applied. The Explanatory Notes (EN), which represent the official interpretation of the tariff at the international level, facilitate classification by offering guidance in understanding the scope of the headings and GRI.

With respect to the classification issue, heading 6110, HTSUS, provides for "Sweaters, pullovers, sweatshirts, waistcoats (vests) and similar articles, knitted or crocheted." Statistical Note 3 to Chapter 61, HTSUS, states that "[f]or purposes of this chapter, statistical provisions for sweaters include garments, whether or not known as pullovers, vests or cardigans, the outer surfaces of which are constructed essentially with 9 or fewer stitches per 2 centimeters measured in the horizontal direction, and garments, known as sweaters, where, due to their construction, the stitches on the outer surface cannot be counted in the horizontal direction."

As noted in the FACTS section above, the construction of the sweater vest's front and back panels satisfies the Statistical Note 3 provision for sweaters. The sweater vest is classified in subheading 6110.90.9040, HTSUSA, textile category 845, the provision for "Sweaters, pullovers, sweatshirts, waistcoats (vests) and similar articles, knitted or crocheted: Of other -3-
textile materials: Other: Sweaters for women or girls: Other: Other: Assembled in Hong Kong from knit-to-shape component parts knitted elsewhere."

With regard to the issue of the garment's country of origin, we note that 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 or 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." Since the merchandise is not wholly obtained or produced in a single country, territory or insular possession, paragraph (c)(1) is not applicable.

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:"

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. -4-

The girl's knit sweater vest is classified under heading 6110, HTSUS. The above rule requires that a tariff shift to heading 6110 occur. A tariff shift to heading 6110 occurs in Hong Kong, but from components that are classifiable in heading 6117, HTSUS, which is not outside the group (heading 6101 through 6117). Since the tariff shift occurring in Hong Kong fails to meet the requirements of the rule, origin cannot be determined by application of section 102.21(c)(2).

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; ***.

Since the knit to shape components of the garment were knit only in China, the knitting to shape of the front and back panels in China confers the country of origin.

HOLDING:

The girl's sleeveless knit sweater vest is classified in subheading 6110.90.9040, HTSUSA, textile category 845, the provision for "Sweaters, pullovers, sweatshirts, waistcoats (vests) and similar articles, knitted or crocheted: Of other textile materials: Other: Sweaters for women or girls: Other: Other: Assembled in Hong Kong from knit-to-shape component parts knitted elsewhere." The applicable rate of duty is 6 percent ad valorem.

The country of origin of the girl's sleeveless knit sweater vest is China.

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 19 CFR 177.9(b)(1), which states that each ruling letter is issued on the assumption that all of the information furnished and incorporated 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 -5-
revocation. A change in the facts previously furnished may affect the determination of country of origin. Thus, if there is any change in the facts provided to Customs, it is recommended that a new ruling request be submitted in accordance with 19 CFR 177.2.

The designated textile and apparel category may be subdivided into parts. If so, visa and quota requirements applicable to the subject merchandise may be affected. Since part categories are the result of international bilateral agreements which are subject to frequent renegotiations and changes, to obtain the most current information available, we suggest that you check, close to the time of shipment, the Status Report On Current Import Quotas (Restraint Levels), an internal issuance of the U.S. Customs Service, which is available for inspection at your local Customs office.

Due to the changeable nature of the statistical annotation (the ninth and tenth digits of the classification) and the restraint (quota/visa) categories applicable to textile merchandise, you should contact your local Customs office prior to importation of this merchandise to determine the current status of any import restraints or requirements.

Sincerely,

John Durant, Director

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