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HQ 959425





August 21, 1996

CLA-2 RR:TC:TE 959425 jb

CATEGORY: CLASSIFICATION

Manatt Phelps Phillips
Donald S. Stein, Esq.
1501 M Street, N.W., Suite 700
Washington, D.C. 20005

RE: Country of origin determination for a romper; 19 CFR

Dear Mr. Stein:

This is in reply to your letter dated July 2, 1996, on behalf of your client, the Tarrant Apparel Group (dba Fashion Resource), requesting a country of origin determination for a romper. A sample was submitted to this office for examination.

FACTS:

The subject merchandise is a 100 percent cotton romper consisting of three main parts: the bodice, shorts and seven fabric panels sewn together at the waistline. The additional panels encircle the shorts but do not completely obscure them. The romper also features a round neckline, a partial opening at the neck with a five button closure ending at the waist, no sleeves (2-1/2 inch straps), a three button fly front, two pieces of self fabric back ties, and short pant legs.

The manufacturing operations, using fabric formed in Hong Kong and China, are as follows:

Scenario I

CHINA

- cutting of the component pieces;
- cutting bias for front neck and armhole; - joining together the four pieces of the top front panels and then top stitching;
- joining together the three pieces of the top back panels and then top stitching;
- joining together the four front wrap panels and then top stitching;
- joining together the three back wrap panels and then top stitching;
- forming the fly front and attaching to the short portion and top stitching, then joining the front rise; - joining the back rise and side seam and inseam of the shorts and sewing hem;
- joining the front and back wrap panels together, then hemming the front edge and bottom;
- sewing the self fabric back ties and hemming the back yoke facing;
- overlock and top stitch the inside placket.

HONG KONG

- joining the side seam of bodice and putting together with self fabric back ties;
- sewing front neck bias ( separate piece of fabric running along the neck ) and armhole bias (separate piece of fabric running along the armholes), then joining back yoke facing to back panel, sewing the shoulder seam and joining the inside placket;
- overlocking the top body (bodice) together with bottom (shorts) and wrap, thereby joining the bodice, shorts and wrap together, then top stitch.

CHINA

- putting button hole on the placket and the fly; - washing;
- cutting threads;
- inspecting;
- pressing;
- putting on buttons;
- attaching the hook and trimming the thread on the garment; - final inspection;
- packing.

Scenario II

All of the operations are identical except that the joining of the back rise, side seam, inseam and hem of the shorts portion are done in Hong Kong. Additionally, the joining of the front and back wrap panels, and the hemming of the front edge and bottom occurs in Hong Kong.
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 (codified at 19 U.S.C. 3592) 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":

6210-6212 If the good consists of two or more component parts, a change to an assembled good of heading 6210 through 6212 from unassembled components, provided that the change is the result of the good being wholly assembled in a single country, territory or insular possession.

Paragraph (b)(6) of section 102.21 defines the term "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.

The subject merchandise is classifiable in heading 6211, Harmonized Tariff Schedule of the United States (HTSUS). As the subject merchandise undergoes assembly operations in both China and Hong Kong that go beyond "minor attachments, minor embellishments and minor subassemblies", it does not qualify as "wholly assembled" in a single country. As such paragraph (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 not knit, and the merchandise is not wholly assembled in 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". In the case of scenario I, the joining of the top front panels together and then top stitching, joining the top back panels together and then top stitching, joining the front wrap panels together and then top stitching, joining the back wrap panels together and then top stitching, joining the front rise, joining the back rise, side seam and inseam of the shorts portion, and joining the front and back wrap, constitutes the most important assembly process. Accordingly, country of origin is conferred by the single country in which those operations take place, that is China. In the case of scenario II, the joining together of the back rise, side seam, inseam and hem of the shorts portion, joining the front and back wrap panels together, hemming the front edge and bottom of the wrap, joining the side seams of the bodice and putting together with self-fabric ties, sewing on the front neck bias and armhole bias, joining the back yoke facing to back panel, sewing the shoulder seam, joining the inside placket, and overlocking the bodice together with the shorts and wrap, constitutes the most important assembly process. Accordingly, country of origin is conferred by the single country in which those operations take place, that is, Hong Kong.

In your submission you request that Customs confirm that any goods produced in Hong Kong utilizing Hong Kong's Outward Processing Arrangement will be deemed presumptively of Hong Kong origin for purposes of Section 102.21, Customs Regulations. Customs cannot make such a confirmation. Each request for a country of origin determination is made on a case by case basis, which allows Customs to carefully consider the particulars of individual manufacturing scenarios. Pursuant to Section 334 of the Uruguay Round Agreements Act, for textile or apparel products entered, or withdrawn from warehouse for consumption, on or after July 1, 1996, Customs will base its country of origin determination on U.S. law only, specifically Section 102.21, Customs Regulations.

Additionally, you state that although Customs has declined to define the term "most important" in referring to the most important assembly or manufacturing process, Customs does agree that the joining of all components of a good in one country would always be as important as the joining of components into a subassembly. In response to this statement it should be noted that what is deemed to be important, or in this case most important, in reference to the joining of components of a good, depends upon one's interpretation of "subassembly" and "assembly" for purposes of applying the origin regulations. In the case of scenario I, this office does not regard the assembly operations that occur in China as mere "subassemblies". As such, in scenario I, the country of origin in conferred in China.

HOLDING:

In scenario I the country of origin of the subject romper is China.

In scenario II the country of origin of the subject romper is Hong Kong.

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 sections 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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