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HQ 959234




June 7, 1996

CLA-2 RR:TC:TE 959234 CAB

CATEGORY: CLASSIFICATION

Siegel, Mandell & Davidson, P.C.
One Astor Plaza
1515 Broadway
43rd Floor
New York, New York 10036-8901

RE: Country of origin of a beret; Section 102.21(c)(3); knit to shape article

Dear Sirs:

This is in response to your inquiry of May 10, 1996, requesting a country of origin ruling pursuant to Section 102.21, Customs Regulations, on behalf of Liz Claiborne Accessories, Inc. The merchandise at issue is a beret and a sample was submitted for examination. The sample will be returned under separate cover.

FACTS:

The merchandise at issue consists of a beret comprised of a wool knit-to-shape body and a reversible lining constructed of knit polyester polar-fleece fabric. The production of the finished beret involves processing in two countries.

In Country A, the body of the beret is knit-to-shape from wool yarns. The beret body has the shape and form of a completed wool beret, including a headband at the bottom and a beret fob at the top. The knit-to-shape beret body is then shipped to Country B.

In Country B, the fabric used to make the reversible polyester polar-fleece lining is knitted. It is then cut into two pieces, a circle and a "donut"-shaped piece, which are sewn together into the approximate shape of a head covering. The result is a reversible lining, which is then attached to the underside of the wool beret body which is produced in Country A. In Country B, the lower portion of the wool beret body is doubled over to form a hem which meets the unfinished edge of the polar-fleece lining. Resulting from the manufacturing operations is a reversible beret.

ISSUE:

What is the country of origin of 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Pursuant to the Uruguay Round Agreements Act, new rules of origin will be effective on textile products entered, or withdrawn from warehouse, for consumption on or after July 1, 1996.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.

Section 102.21(e) provides, in pertinent part:

6505.90 (1) If the good consist 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 article is classified in subheading 6505.90 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.

The beret body which is knit-to-shape in Country A is already classifiable in subheading 6505.90 prior to the assembly with the lining in Country B. Thus, the assembly in Country B does not result in the wool beret body, undergoing a change to subheading 6509.90 from any other heading as it was already classifiable in this subheading. Therefore, the tariff shift rule is not met and Section 102.21(c)(2) is inapplicable.

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.

Section 102.21(c)(3)(i) provides the following:

If the good was knit to shape, the country or origin of the good is the single country, territory, or insular possession in which the good was knit;....

Section 102.21(c)(b) states the following:

(3) Knit to shape. The term knit to shape applies to any good of which 50 percent or more of the exterior surface area is formed by major parts that have been knitted or crocheted directly to the shape used in the good with no consideration being given to patch pockets, appliques, or the like. Minor cutting, trimming, or sewing of those major parts will not affect the determination of whether a good is "knit to shape."

(4) Major parts. The term major parts means integral components of a good but does not include collars, cuffs, waistbands, plackets, pockets, linings, paddings, trim, accessories, or similar parts.

In this case, the subject beret is comprised of two components, the reversible lining
(i.e., an alternate exterior body ) and the wool knit to shape exterior body. The knit to shape beret body makes up more than 50 percent of the exterior surface and is a major part of the finished beret. The beret body is knit to shape in Country A and therefore, in accordance with Section 102.21(c)(3)(i), the country of origin of the subject beret is Country A.

HOLDING:

The country of origin of the beret 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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