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 955389 - HQ 956749 > HQ 956730

Previous Ruling Next Ruling
HQ 956730




November 4, 1994

CLA-2 CO:R:C:T 965730 CAB

CATEGORY: CLASSIFICATION

TARIFF NO.: 6203.43.3500; 6201.93.3000

David J. Evan, Esq.
Grunfeld, Desiderio, Lebowitz & Silverman 245 Park Avenue
New York, NY 10167-0002

RE: Tariff Classification of water resistant garments; Heading 6203; Heading 6201; U.S. Additional Note 2, Chapter 62, HTSUSA; Section 12.130, Customs Regulations

Dear Mr. Evan:

This is in response to your inquiry of July 8, 1994, on behalf of your client Haddad Apparel Group, Ltd., requesting a country of origin and tariff classification of certain boys' upper and lower body garment under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA). Samples were submitted for examination.

FACTS:

The merchandise at issue is described as Style No. 5819. Style No. 5819 is comprised of a boys' size six jacket and pants which are constructed of 100 percent woven nylon shell fabric. The jacket contains a 65% polyester/35% cotton jersey knit lining, a full frontal opening with a zipper means of closure, elasticized sleeves and waistband, contrasting fabric on the sleeves and the upper front and back, and a hood. The pants contain an elasticized waistband with a drawstring for tightening, elasticized ankles, a cotton jersey knit lining, a patch rear pocket, and contrasting stripe fabric around the right leg. The garments will be imported in boys' sizes 2/4, 4/7 and 8/20. You state that the pants and the jacket including the hood have been treated with 600 mm of polyurethane coating on the outer shell.

The garments of Style No. 5819 will be produced from nylon fabric woven in Korea and knit fabric produced in Pakistan. Both types of fabric will be cut into garment pieces in the United Arab Emirates. The cut pieces will then be exported to Oman for assembly into the finished garments.

ISSUES:

I. What is the tariff classification for the subject garments?

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

TARIFF CLASSIFICATION

Heading 6211, HTSUSA, is the provision for woven track suits. The Explanatory Notes to the Harmonized Commodity Description and Coding System (EN), although not legally binding, are the official interpretation of the tariff at the international level. The EN to Heading 6211, HTSUSA, state that track suits consist of two garments, one for the upper body and a pair of trousers, which, because of their general appearance and the nature of the fabric, are clearly meant to be worn exclusively or mainly in the pursuit of sporting activities.

The instant garments contain the general characteristics of a track suit. The attributes include the elasticized waistband, cuffs, and ankles, a lightweight lining that breathes and wicks away moisture and shell fabric which is commonly used in the construction of track suits.

In your submission, you state that the polyurethane coating applied to the exterior of the garments renders them water resistant for tariff classification purposes. Additional U.S. Note 2, Chapter 62, HTSUSA, provides, in pertinent part:

[T]he term "water resistant" means that garments classifiable in those subheadings must have water resistance (see ASTM designations D 3600-81 and D 3781-79) such that, under a head pressure of 600 millimeters, not more than 1.0 gram of water penetrates after two minutes when tested in accordance with AATCC Test Method 35-1985. This water resistance must be the result of a rubber or plastics application to the outer shell, lining or inner lining.

In addition to having the characteristics of a track suit as described in the EN, to be properly classifiable as a track suit, garment must also be suitable for use during sporting activities. In this case, the extensive coating added to the garments' surface will not allow them to breathe and wick away moisture during sporting activities. Customs has consistently stated that a minimum prerequisite for garments suitable for wear during participation in sporting activities is that they be capable of breathing and wicking away moisture. As the instant garments do not meet this minimum requirement, they are not classifiable as a track suit under Heading 6211, HTSUSA.

Since the jacket and pants are not classifiable as a track suit, the only other alternative is to classify them as separates in Chapter 62, HTSUSA. The jacket is classifiable under Heading 6201, HTSUSA, which provides for boys' windbreakers and similar articles. The pants are classifiable under Heading 6203, HTSUSA, which provides for boys' trousers. As the garments have a polyurethane coating added to their exterior that is said to be in accordance with Additional U.S. Note 2, Chapter 62, HTSUSA, they are classifiable under the applicable water resistant subheadings.

COUNTRY OF ORIGIN

Country of origin determinations for textile products are subject to Section 12.130, Customs Regulations (19 CFR 12.130). Section 12.130 provides that a textile product that is processed in more than one country or territory shall be a product of that country or territory where it last underwent a substantial transformation. A textile product will be considered to have undergone a substantial transformation if it has been transformed by means of substantial manufacturing or processing operations into a new and different article of commerce.

Section 12.130(d), Customs Regulations, sets forth criteria for determining whether a substantial transformation of a textile product has taken place. This regulation states these criteria are not exhaustive; one or any combination of criteria may be determinative, and additional factors may be considered.

Section 12.130(d)(1), Customs Regulations, states that a new and different article of commerce will usually result from a manufacturing or processing operation if there is a change in:

(i) Commercial designation or identity, (ii) Fundamental character or (iii) Commercial use.

Section 12.130(d)(2), Customs Regulations, states that for determining whether merchandise has been subjected to substantial manufacturing or processing operations, the following will be considered:

(i) The physical change in the material or article;

(ii) The time involved in the manufacturing or processing operation;

(iii) The complexity of the manufacturing or processing operation;

(iv) The level or degree of skill and/or technology required in the manufacturing or processing operations; and

(v) The value added to the article or material.

Section 12.130(e)(1), Customs Regulations, describes manufacturing or processing operations from which an article will usually be considered a product of the country in which those operations occurred. Section 12.130(e)(1)(v) provides the following:

Substantial assembly by sewing and/or tailoring of all cut pieces of apparel articles which have been cut from fabric in another foreign territory or country, or insular possession, into a completed garment (e.g., the complete assembly and tailoring of all cut pieces of suit-type jackets, suits and shirts).

Section 12.130(e)(2)(iii), Customs Regulations, provides that an article usually will not be considered to be a product of a particular foreign territory or country, or insular possession of the U.S. by virtue of merely having undergone any of the following:

Trimming and/or joining together by sewing, looping, linking, or other means of attaching otherwise complete knit-to-shape component parts produced in a single country, even when accompanied by other processes (e.g. washing, drying, mending etc.) normally incident to the assembly process;

According to T.D. 85-38, the final document rule establishing 19 CFR 12.130:

The assembly of all the cut pieces of a garment usually is a substantial manufacturing process that results in an article with a different name, character, or use than the cut pieces. It should be noted that not all assembly operations of cut garment pieces will amount to a substantial transformation of those pieces. Where either less than a complete assembly of all the cut pieces of a garment is performed in one country, or the assembly is a relatively simple, then Customs will rule on the particular factual situation as they arise, utilizing the criteria in Section 12.130(d).

After examining the extensive manufacturing operations required to completely assemble a lined jacket and pants, Customs believes that the assembly operation in Oman is more than a simple sewing process. Instead, the entire assembly of these cut garment pieces requires the requisite skill and technology for a substantial assembly in accordance with Section 12.130(e)(1), Customs Regulations, and therefore, constitutes a substantial transformation in Oman.

In your submission you cite Headquarters Ruling Letter 082782, dated March 9, 1989. You specifically state that in HRL 082782, Customs held that a child's two-piece lined jogging suit underwent a substantial transformation in the country where the garment was assembled given the complexity of the assembly operation. This statement is partly correct. The merchandise therein consisted of a child's two piece jogging suit. The jacket component was lined and similar in construction to the instant garment. The pants, however, were unlined and made of knit-to-shape component pieces. Customs made a distinction between the two garments and stated that the jacket underwent a substantial manufacturing operation and therefore, was substantially transformed in the country of assembly. On the other hand, the pants forming the jogging suit underwent a simple combining operation and therefore were not substantially transformed in the country of assembly.

HOLDING:

The country of origin of Style No. 5819 is the country of assembly, Oman.

This ruling is issued pursuant to the provisions of Part 177 Customs Regulations (19 CFR Part 177). The holding in this ruling only applies to the specific factual situation presented and the merchandise identified in the ruling request. If the information furnished is not accurate or complete, or there is a change in the factual situation, this ruling will no longer be valid. In such an event, a new ruling request should be submitted.

Provided the jacket meets the requirements for water resistance in accordance with Additional U.S. Note 2, Chapter 62, HTSUSA, the applicable subheading is 6201.93.3000, HTSUSA, which provides for other boys' water resistant anoraks, windbreakers and similar articles of man-made fibers. The rate of duty is 7.6 percent ad valorem and the textile restraint category is 634. Provided the trousers meet the cited water resistance text, the applicable subheading is 6203.43.3500, HTSUSA, which provides for other boys' water resistant trousers of man-made fibers. The duty rate is 7.6 percent ad valorem and the textile restraint category is 647.

The designated textile and apparel category may be subdivided into parts. If so, visa and quota requirements applicable to the subject merchandise may be affected. Since part categories are the result of international bilateral agreements which are subject to frequent renegotiations and changes, to obtain the most current information available, we suggest that you check, close to the time of shipment, the Status Report on Current Import Quotas (Restraint Levels), an internal issuance of the U.S. Customs Service, which is available for inspection at your local Customs office.

Due to the changeable nature of the statistical annotation (the ninth and tenth digits of the classification) and the restraint (quota/visa) categories applicable to textile merchandise, you should contact your local Customs office prior to importing the merchandise to determine the current status of any import restraints or requirements.

Sincerely,

John Durant, Director
Commercial Rulings Division

Previous Ruling Next Ruling

See also: