United States International Trade Commision Rulings And Harmonized Tariff Schedule

faqs.org  Rulings By Number  Rulings By Category  Tariff Numbers

faqs.org > Rulings and Tariffs Home > Rulings By Number > 1996 HQ Rulings > HQ 959435 - HQ 959673 > HQ 959518

Previous Ruling Next Ruling
HQ 959518

---

August 5, 1996

CLA-2 RR:TC:TE 959518 CAB

CATEGORY: CLASSIFICATION

Mrs. Gayle E. Williams
Sears Roebuck and Company
3333 Beverly Road
Hoffman Estates, Illinois 60179

RE: Country of origin of a knit to shape sweater; Section 102.21(c)(3), Customs Regulations

Dear Ms. Williams:

This is in response to your inquiry of May 9, 1996, requesting a country of origin determination for women's sweaters pursuant to Section 102.21, Customs Regulations. A sample was submitted for examination and will be returned to you under separate cover.

FACTS:

The merchandise at issue is a women's knitted sweater. The knitting of the front, back, and sleeves is done in the Philippines. The linking, finishing, and packaging is done in China.

ISSUE:

What is the country of origin of the subject sweater?

LAW AND ANALYSIS:

Pursuant to Section 334 of the Uruguay Round Agreements Act (codified at 19 USC 3592), new rules of origin were effective on textile products entered, or withdrawn from warehouse, for consumption on or after July 1, 1996.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. As the subject merchandise is not wholly obtained or produced in a single country, territory, or insular possession, Section 102.21(c)(1) is inapplicable.

Section 102.21(c)(2) provides for instances where the country of origin of a textile or apparel product cannot be determined under Section 102.21(c)(1).

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:

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.

The subject article is classified in Heading 6110 of the Harmonized Tariff Schedule of the United States Annotated (HTSUSA). Section 102.21(e) requires a tariff shift to headings 6101 through 6117 from any heading outside the specified headings. In this case, however, a tariff shift to Heading 6110 occurs in the Philippines, from components that are classifiable under Heading 6117, HTSUSA. The tariff shift in this instance does not meet the applicable requirements of Section 102.21(e), and therefore, Section 102.21(e) is not applicable.

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 or (with an exception for goods of certain specifically enumerated headings), was wholly assembled in a single country, territory, or insular possession.

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 sweater is comprised of the front and back panels and the sleeves. The knit to shape front and back panels and sleeves make up more than 50 percent of the exterior surface and are major parts of the finished sweater. The knit to shape major parts are knit in the Philippines, and therefore, in accordance with Section 102.21(c)(3)(i), the country of origin of the subject sweater is the Philippines. This determination is consistent with recent Headquarters Ruling Letter (HRL), 959168, dated May 28, 1996, where Customs determined that the country of origin of a vest consisting of front and back panels knit to shape in China was China.

HOLDING:

The country of origin of the knit to shape sweater is the Philippines.

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

Previous Ruling Next Ruling