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HQ 959330




September 20, 1996

CLA-2 RR:TC:TE 959330 jb

CATEGORY: CLASSIFICATION

Diane L. Weinberg, Esq.
Sandler, Travis & Rosenberg, P.A.
505 Park Avenue
New York, NY 10022-1106

RE: Country of origin determination for a Western style shirt and trousers; 19 CFR ?102.21(c)(4); most important assembly or manufacturing process

Dear Ms.Weinberg:

This is in reply to your letter dated June 11, 1996 and supplemented by additional information on July 10, 1996, and August 6, 1996, on behalf of your client, Levi Strauss & Company, requesting a country of origin determination for a Western style shirt and trousers which will be imported into the United States.

FACTS:

The subject merchandise consists of a men's Western style shirt and trousers made out of 100 percent woven cotton fabric. The manufacturing operations for each garment are as follows:

Western Style Shirt

COUNTRY A

- piece goods are cut into shaped components; - collar is formed;
- front plackets are formed with buttons and buttonholes and sewn to front panels;
- pockets are formed and sewn to front panels; - front yoke sewn to two front panels;
- back yoke sewn to back panel and hanger loop may be added; - sleeve plackets are formed and sewn to sleeve panels; side seams are not stitched;
- cuffs are formed.

*Neither the two front panels are joined together nor are the front panel and back panel joined together. COUNTRY B

- collar, right front panel, left front panel, back panel, sleeves and cuffs are sewn together into the completed shirt.

Trousers

COUNTRY A

- piece goods are cut into shaped components; - waistband is formed;
- zipper is sewn onto either the left or right front leg panel; the zipper is not attached to both of the front leg panels;
- pockets are formed and attached to the front and back leg panels;
- overlock stitching is added to front leg panels to prevent unraveling;
- overlock stitching is added to back leg panels to prevent unraveling.

COUNTRY B

- other side of the zipper is sewn onto the other front leg panel;
- front rise and back rise are assembled; - front and back panels are joined together (inseams and outseams are sewn);
- waistband is attached to the front and back panels.

ISSUE:

What is the 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." In the case of the subject merchandise, as neither the shirt nor the trousers are 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":

6201-6208 If the good consists of two or more component parts, a change to an assembled good of heading 6201 through 6208 from unassembled components, provided that the change is the result of the good being wholly assembled in a single country, territory or insular possession.

The subject shirt and trousers are classified in headings 6205 and 6203, Harmonized Tariff Schedule of the United States (HTSUS), respectively. Section 102.21(b)(6) defines wholly assembled as:

The term "wholly assembled" when used with reference to a good means that all components, of which there must be at least two, preexisted in essentially the same condition as found in the finished good and were combined to form the finished good in a single country, territory, or insular possession. Minor attachments and minor embellishments (for example, appliques, beads, spangles, embroidery, buttons) not appreciably affecting the identity of the good, and minor subassemblies (for example, collars, cuffs, plackets, pockets), will not affect the status of a good as "wholly assembled" in a single country, territory, or insular possession.

As the assembly for the subject merchandise occurs in both Country A and Country B, the shirt and trousers are not wholly assembled in a single country. Accordingly, Section 102.21(c)(2) is inapplicable.

Paragraph (c)(3) states that "Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1) or (2) of this section":

(i) If 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; or

(ii) Except for goods of heading 5609, 5807, 5811, 6213, 6214, 6301 through 6306, and 6308, and subheadings 6209.20.5040, 6307.10, 6307.90, and 9404.90, if the good was not knit to shape and the good was wholly assembled in a single country, territory, or insular possession, the country of origin of the good is the country, territory, or insular possession in which the good was wholly assembled.

As the subject merchandise is neither knit to shape nor wholly assembled is a single country, Section 102.21 (c)(3) is inapplicable.

Section 102.21 (c)(4) states, "Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1), (2) or (3) of this section, the country of origin of the good is the single country, territory or insular possession in which the most important assembly or manufacturing process occurred". It is the opinion of this office that in the case of the Western style shirt, the most important assembly occurs at the time of the sewing together of the collar, right front panel, left front panel, back panel and sleeves. Accordingly, country of origin is conferred in the single country where those operations occur, that is, Country B. In the case of the trousers the most important assembly process occurs at the time of the sewing of the other side of the zipper to the other leg panel, the sewing together of the front rise and back rise, the joining together of the front and back panels (the sewing of the inseams and outseams), and the attachment of the waistband. Accordingly, country of origin is conferred in the single country where those operations occur, that is, Country B.

HOLDING:

The country of origin of the subject shirt is Country B.

The country of origin of the subject trousers is Country B.

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

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