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 > 1997 HQ Rulings > HQ 560129 - HQ 560322 > HQ 560178

Previous Ruling Next Ruling
HQ 560178





November 29, 1996

MAR 05 RR:TC:SM 560178 KKV

CATEGORY: MARKING

Ms. Jacqueline A. Bonace
International Trade Division
Blair Corporation
220 Hickory Street
Warren, PA 16366-0001

RE: Country of origin marking for sweaters knit to shape in China and assembled in Hong Kong; HQ 733323; 19 CFR 134.46

Dear Ms. Bonace:

This is in response to your letter dated November 5, 1996, which requests a binding ruling regarding the correct country of origin marking for sweater vests knit to shape in China and assembled in Hong Kong. A sample of the finished sweater vest has been submitted for our consideration.

ISSUE:

What are the country of origin marking requirements for sweater vests knit to shape in China and assembled in Hong Kong?

FACTS:

The fiber content for the sweater vest at issue is 55% ramie, 45% cotton. We are informed that the front and back panels of the sweater vest are knit in China. Additionally, embroidery is done on the front panel, ribbon is woven into the front panel and a scallop edging is finished prior to the exportation of the panels to Hong Kong for assembly. In Hong Kong the shoulders and sides are joined and buttons are sewn onto the vest, which is then packaged for shipping.

LAW AND ANALYSIS:

I. Country of Origin

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Section 334 of that Act (codified at 19 U.S.C. 3592) provides new rules of origin for textiles and apparel entered, or withdrawn from warehouse, for consumption, on and after July 1, 1996.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 (19 CFR 102.21), in the Federal Register, implementing Section 334 (60 FR 46188). Thus, effective July 1, 1996, the country of origin for a textile or apparel product is determined by a sequential application of the origin rules set forth in paragraphs (c)(1) through (5) of section 102.21. As a general rule, under the new textile origin rules, where a textile or apparel article is assembled in one country from components cut to shape in another country, the country of assembly will be the origin of the article. Cutting fabric to shape no longer confers origin.

Section 102.21(c)(1), Customs Regulations (19 CFR 102.21(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.

Section 102.21(c)(2), Customs Regulations (19 CFR 102.21(c)(2)), provides:

[w]here 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) states "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:"

6110-6117 (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 sweater vests are classifiable under Heading 6110, which provides for, knitted sweaters and similar articles. The applicable tariff shift rule requires a tariff shift to heading 6101 through 6117 from any heading outside that group. In this case, although the goods are knit to shape they fail to meet the applicable tariff shift requirements as they are classifiable under Heading 6110, HTSUS, and the sweater components are classifiable under Heading 6117, HTSUS, which is not outside the specified group (heading 6101-6117). 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: "[i]f 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..."

Section 102.21(b)(3) and (4)provides as follows:

(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 the case at issue, the panels of the sweaters are knit to shape and embroidered in China and transported to Hong Kong where they are assembled into the finished sweater vests. The subject panels make up more than 50 percent of the exterior surface and are major parts of the finished sweater vests. Therefore, in accordance with section 102.21(c)(3)(i), the country of origin of the sweaters is China, the country where the goods were knit.

II. Marking Requirements

Section 304 of the Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless excepted, every article of foreign origin imported into the United States shall be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article (or its container) will permit, in such a manner as to indicate to the ultimate purchaser in the United States the English name of the country of origin of the article. By enacting 19 U.S.C. 1304, Congress intended to ensure that the ultimate purchaser would be able to know by inspecting the marking on the imported goods the country of which the goods are the product. The evident purpose is to mark the goods so that at the time of purchase the ultimate purchaser may, by knowing where the goods were produced, be able to buy or refuse to buy them, if such marking should influence his will. United States v. Friedlaender & Co., 27 C.C.P.A. 297, 302 C.A.D. 104 (1940).

Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. One of the exceptions to the general marking requirement is codified in 19 U.S.C. 1304(a)(3)(D) (as implemented by 19 CFR 134.32(d)), which provides that an article may be excepted from marking if the marking of its container will reasonably indicate its origin to the ultimate purchaser. As provided in section 134.41, Customs Regulations (19 CFR 134.41), the country of origin marking is considered to be conspicuous if the ultimate purchaser in the United States is able to find the marking easily and read it without strain. The degree of permanence of the marking should be at least sufficient to insure that in any reasonably foreseeable circumstance, the marking shall remain on the article until it reaches the ultimate purchaser unless it is deliberately removed. The marking must survive normal distribution and store handling.

Effective August 5, 1996, section 134.43(e), Customs Regulations (19 CFR 134.43(e), provides, in pertinent part that:

Where an article is produced as a result of an assembly operation and the country of origin of such article is determined under this chapter to be the country in which the article was finally assembled, such article may be marked, as appropriate, in a manner such as the following:

(1) Assembled in (country of final assembly);

(2) Assembled in (country of final assembly) from components of
(name of country or countries of origin of all components); or

(3) Made in, or product of, (country of final assembly).

See 61 FR 28936 and 28957. In this case, because the country of origin of the sweater vests has been determined under 19 CFR 102.21 to be China, which is not the country of final assembly, the garments may not be marked "Assembled in Hong Kong, Knit in China."

Your letter contains six proposed country of origin markings:

1) Knit in China
Finished in Hong Kong

2) Knitted in China
Finished in Hong Kong

3) Knit in China
Linked and Looped in Hong Kong

4) Knitted in China
Linked and Looped in Hong Kong

5) Knit in China
Linked and Stitched in Hong Kong

6) Knitted in China
Linked and Stitched in Hong Kong

In HQ 733323, dated May 2, 1990, published as C.S.D. 90-69, 24 Cust. B. & Dec. No. 23, Customs determined that, with regard to sweaters, the phrase "Knit in" is similar in meaning to "Made in" or "Product of" for purposes of country of origin marking. See also, HQ 733592, dated August 22, 1990, HQ 734736, dated December 17, 1992 and HQ 558722, dated December 19, 1994. Similarly, in HQ 733534, dated June 7, 1990, Customs ruled that the phrase "Handknit in China" was also acceptable country of origin marking.

Once an article has been correctly marked with the country of origin, there is no additional marking requirement for indicating the location of other manufacturing steps or the origin of any components utilized. In HQ 733323, supra, Customs indicated that reference may be made to a second country so long as the country of origin is clearly stated and the requirements of section 134.46, Customs Regulations (19 CFR 134.46), are satisfied. This regulation requires that in any case in which the name of any country other than the country in which the article was manufactured or produced appears on an imported article or its container, there shall appear, legibly and permanently, in close proximity to such name, and in at least a comparable size, the name of the country of origin preceded by "Made in," "Product of," or other words of similar meaning.

As indicated above, pursuant to 19 CFR 102.21, the country of origin of a sweater vest which is knit to shape in China and assembled in Hong Kong is China. Applying the general country of origin marking requirements, any acceptable marking on the finished sweaters must clearly indicate that China is the country of origin. Thus, the sweater vests at issue may properly be marked "China," "Made in China," "Manufactured in China" or "Product of China." Moreover, in accordance with the rulings discussed above, Customs would also accept "Knit in China" or "Handknit in China." The phrase "Knitted in China" and "Knit to Shape in China" are also acceptable.

If, however, any reference is made to the processing performed in Hong Kong, the requirements of 19 CFR 134.46 must be satisfied and the country of origin must be preceded by "Made in", "Product of," or other words of similar meaning. As indicated, for purposes of this provision, we consider "Knit in," "Knitted in," "Handknit in" and "Knit to Shape in" words of similar meaning to "Made in" or "Product of". Thus, inasmuch as the proposed markings set forth the correct country of origin for the subject merchandise, each of the proposed markings is acceptable, as the requirements of 19 U.S.C. 1304 and 19 CFR Part 134 have been met.

HOLDING:

On the basis of the information submitted, the country of origin of the sweater vests is China for country of origin marking and visa purposes pursuant to 19 CFR

With regard to country of origin marking for sweaters, the phrases ""Knit in," "Knitted in," "Handknit in" and "Knit to Shape in" are words of similar meaning to "Made in" or "Product of" for purposes of 19 CFR 134.46. Therefore, they may be used in combination with reference to the location of other processing, e.g., "Finished in [or Linked] [or Looped] [or Stitched]." However, pursuant to 19 CFR 134.43(e), the sweater
vests may not be marked, "Assembled in" because their country of origin is not the country of final assembly.

A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise is entered. If the documents have been filed without a copy, this ruling should be brought to the attention of the Customs officer.

Sincerely,

John Durant, Director
Tariff Classification

Previous Ruling Next Ruling