HQ 959567 - Country of origin determination for women's panties; 19 CFR 12.130(c) - United States International Trade Commision Rulings

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HQ 959567

September 6, 1996
CLA-2 RR:TC:TE 959567 jb

CATEGORY: CLASSIFICATION

Silvia Perez
M.G. Maher & Company, Inc.
One Canal Place
Suite 2100
New Orleans, LA 70130

RE: Country of origin determination for women's panties; 19 CFR 12.130(c)

Dear Ms. Perez:

This is in reply to your letter dated July 30, 1996, on behalf of your client, I Appel Corp., requesting a country of origin determination for certain women's panties which will be imported into the United States. A sample was submitted to this office for examination.

FACTS:

The subject merchandise consists of a pair of 100 percent cotton knit women's panties. The manufacturing operations are as follows:

UNITED STATES

- panties are knit to shape.

MEXICO

- one seam at the crotch is sewn;
- elastic is attached at the leg openings.

UNITED STATES

- panties are dyed.

ISSUE:

1. What is the country of origin of the subject merchandise?

2. What is the proper marking for 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Section 334 of that Act (codified at 19 U.S.C. 3592) provides new rules of origin for textiles and apparel entered, or withdrawn from warehouse, for consumption, on and after July 1, 1996.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 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 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 merchandise is classifiable as women's panties in heading 6108, Harmonized Tariff Schedule of the United States (HTSUS). As the subject panties are knit-to-shape in a single country, the United States, the country of origin is conferred in the United States.

However, there is an exception to products from the United States that are sent abroad for processing. Section 12.130(c), Customs Regulations, provides that any product of the United States which is returned after having been advanced in value or improved in condition abroad, or assembled abroad, shall be a foreign article.

Section 12.130 which remains in effect was originally intended to be used to determine the country of origin of textiles and textile products for quota/visa requirement. In T.D. 90-17, issued February 23, 1990, Customs announced a change in practice and position. This change resulted in Customs using Section 12.130 for quota, duty and marking purposes when making country of origin determinations for textile goods. Therefore, in accordance with T.D. 90-17 and Section 12.130(c), the country of origin of the subject panties is Mexico for quota, duty and marking purposes.

The marking statute (19 U.S.C. 1304) requires articles of foreign origin imported into the U.S. to be marked to indicate the name of the country of origin of the article. In the case of the subject panties, "Made in Mexico", "Product of Mexico", or "Mexico" would be appropriate markings. Additionally, your letter inquired as to the labeling of the merchandise to include the component materials and the RN number. Once the country of origin of the merchandise is indicated by using any of the appropriate markings discussed above, the inclusion of the origin of the component materials which comprise the article is optional. Any questions regarding an RN number are outside the jurisdiction of Customs and should be addressed to the Federal Trade Commission Division of Enforcement, 6th and Pennsylvania Avenue, N.W. Washington, D.C. 20508.

HOLDING:

The country of origin of the subject women's panties is Mexico.

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 is issued on the assumption that all of the information furnished 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 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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