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HQ 959203





June 7, 1996
CLA-2 RR:TC:TE 959203 jb

CATEGORY: CLASSIFICATION

K. M. Oh
Sam Jung Hwagong Co., Ltd.
1594-7, Bongchun-Dong, Kwanak-Ku
Seoul, Korea

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

Dear Mr. Oh:

This is in reply to your letter dated May 7, 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

- fabric lamination and cutting.

Vietnam

- peak is sewn.

Korea

- crown is sewn;
- sweatband is sewn;
- peak, crown and sweatband are assembled; - plastic adjustable back is sewn;
- top button is placed;
- trimming;
- blocking;
- packing.

Scenario B

Korea

- fabric lamination and cutting.

Vietnam

- crown is sewn.

Korea

- peak is sewn;
- sweatband is sewn;
- peak, crown and sweatband are assembled; - plastic adjustable back is sewn;
- top button is placed;
- trimming;
- blocking;
- packing.

Scenario C

Korea

- fabric laminating and cutting.

Vietnam

- peak is sewn;
- sweatband is sewn.

Korea

- crown is sewn;
- peak, crown and sweatband are assembled; - plastic adjustable back is sewn;
- top button is placed;
- trimming;
- blocking;
- packing.

Scenario D

Korea

- fabric lamination and cutting.

Vietnam

- crown is sewn;
- sweatband is sewn.

Korea

- peak is sewn;
- peak, crown and sweatband are assembled; - plastic adjustable back is sewn;
- top button is placed;
- trimming;
- blocking;
- packing.

Scenario E

Korea

- fabric lamination and cutting.

Vietnam

- peak is sewn;
- crown is sewn.

Korea

- sweatband is sewn;
- peak, crown and sweatband are sewn together; - plastic adjustable back is sewn;
- top button is placed;
- 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 Section 334 of that Act provides new rules of origin for textiles and apparel entered, or withdrawn from warehouse, for consumption, on and after July 1, 1996.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, 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. As the baseball cap is not wholly assembled in a single country in any of the scenarios you have described in your letter, paragraph (c)(2) of Section 102.21 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 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 the opinion of this office, in scenario A, country of origin is conferred by Korea, where the crown is sewn and the peak, crown and sweatband are assembled. In scenario B, country of origin is conferred by Vietnam, where the crown is sewn. In scenario C, country of origin is conferred by Korea, where the crown is sewn and the peak, crown and sweatband are assembled. In scenario D, country of origin is conferred by Vietnam, where the crown is sewn. In country E, the country of origin is conferred by Vietnam, where the crown is sewn.

HOLDING:

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

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

In scenario C the country of origin of the subject baseball cap is Korea.

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

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

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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