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HQ 959593




September 5, 1996
CLA-2 RR:TC:TE 959593 jb

CATEGORY: CLASSIFICATION

Marc S. Greenberg
American Shipping Company, Inc.
600 Sylvan Avenue
Englewood Cliffs, NJ 07632

RE: Country of origin determination for men's knit garments; 19 CFR ?102.21(c)(2); tariff shift

Dear Mr. Greenberg:

This is in reply to your letter dated July 1, 1996, on behalf of your client, EEM USA, Inc., requesting a country of origin determination for four styles of men's knit garments which will be imported into the United States. Samples were submitted to this office for examination and will be returned under separate cover.

FACTS:

The subject merchandise consists of four styles of men's knit garments made of fine gauge 100 percent cotton knit fabric. A description of each of the styles is as follows:

1. Style 1001- a white T-shirt with a crew neck, hemmed sleeves, a hemmed bottom and featuring the words "Polo" embroidered on the bottom left hand side of the front panel in a contrasting color.

2. Style 1002- an oversized yellow T-shirt with a crew neck, hemmed sleeves, a hemmed bottom and featuring the words "Polo Sports Ralph Lauren" and the United States flag printed on the front panel.

3. Style 1003- a black tank top with a hemmed bottom, shoulder straps measuring 1-1/4 inches and the words "Polo" embroidered on the bottom left hand side of the front panel in a contrasting color.

4. Style 1004- a green T-shirt with a crew neck, hemmed sleeves, a hemmed bottom and featuring the words "Polo" embroidered on the bottom left hand side of the front panel in a contrasting color.
The manufacturing operations are as follows:

HONG KONG

- fabric is knit in rolls, approximately 54 inches in width.

FEDERATED STATES OF MICRONESIA

- fabric is cut into component pieces according to pattern; - sewing;
- assembly;
- trimming.

In your letter you stated that you required a classification ruling for the subject merchandise as per the Harmonized Tariff Schedule of the United States (HTSUS). As our New York office issued you New York Ruling Letter (NY) A85421, dated August 1, 1996, discussing the proper classification of this merchandise, this letter will address only the country of origin determination for this merchandise. Additionally, you inquire whether the appearance of the logo bearing the American flag on style 1002 (on both the garment front panel and neck label) is misleading.

ISSUE:

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

2. Is the appearance of the United States flag on style 1002 misleading in view of the proper 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 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 not knit to shape and consists of two or more component parts, a change to an assembled good of heading 6101 through 6117 from unassembled components, provided that the change is the result of the good being wholly assembled in a single country, territory or insular possession.

As indicated in NY A85421, the subject merchandise is classifiable as follows: styles 1001 and 1004 are classifiable in subheading 6109.10.0027, HTSUSA, style 1003 is classifiable in subheading 6109.10.0018, HTSUSA, and style 1002 is classifiable in subheading 6110.20.2065, HTSUSA. As the subject merchandise is wholly assembled in a single country, the Federated States of Micronesia, the country of origin is conferred in the Federated States of Micronesia.

You raise concerns regarding the presence of the logo featuring the United States flag on the front of the garment and on the neck label for style 1002. Section 304 of the Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that articles of foreign origin imported into the U.S. must be legibly, conspicuously and permanently marked to indicate the country of origin to the ultimate purchaser in the U.S. As provided in 19 CFR 134.41, the marking is considered conspicuous if the ultimate purchaser is able to find the marking easily and read it without strain.

Customs has recognized that the presence of a geographic location other than the country in which the article was produced on an imported article or its container may mislead the ultimate purchaser as to the country of origin. Thus, in cases where the name of a location or the name of any foreign country or locality other than the country or locality in which the article was manufactured or produced appears on an imported article or its container, 19 CFR 134.46 provides that there shall appear, legibly and permanently, in close proximity to such words, the name of the country of origin preceded by "Made in", "Product of," or other words of similar meaning. Although 19 CFR 134.46 does not specifically address the situation where symbols associated with a country other than the country of origin appear on the imported articles, Customs has ruled that the presence of such symbols may be taken into account in determining whether the country of origin is conspicuous. In the case of the subject garment, we find that when the United States flag is used as an integral part of the design of the garment, it is not an indicator of the country of origin of that garment; therefore, the requirements of 19 CFR 134.46 are not applicable. See also Headquarters Ruling Letter (HQ) 733795, dated February 15, 1991, which determined that the United States flag featured on certain garments was not indicative of the country of origin of those garments.

The logo featuring the United States flag on the neck label however, does trigger the terms of 19 CFR 134.46. As was noted in C.S.D. 86-5, discussing the country of origin marking requirements on athletic shoewear and shoe boxes displaying symbols associated with a country other than the country of origin, "the presence of symbols associated with a country other than the country of origin may mislead the ultimate purchaser as to the country of origin. This is especially true where the foreign symbols are more readily visible than the country of origin marking". Thus, Customs held that this defect could be cured by assuring that the country of origin marking on the shoe box was conspicuously labeled by using the words "Made in" or "Product of" followed by the country of origin and by writing those words in lettering that was at least 1/8 inch high. The same holds for the submitted merchandise.

HOLDING:

The country of origin of the subject men's knit garments, referenced styles 1001, 1002, 1003 and 1004, is the Federated States of Micronesia.

So long as the country of origin label is placed in close proximity to the logo featuring the United States flag, and the country of origin label states the name of the country of origin preceded by "Made in", "Product of" or other words of similar meaning, written in letters of comparable size as the logo, the logo will satisfy the terms of section 134.46.

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

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