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HQ 959345




July 10, 1996

CLA-2 RR:TC:TE 959345 NLP

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 men's woven cotton jeans; 19 CFR 102.21(c)(4)

Dear Ms. Weinberg:

This is in reply to your letter dated June 14, 1996, on behalf of your client, Wing Tai Garment International, Ltd., requesting a country of origin determination for men's woven cotton jeans which will be imported into the United States on or after July 1, 1996.

FACTS:

The garments at issue are men's 100 percent woven cotton jeans. The manufacturing operations are as follows:

PRODUCTION PLAN I

Country A

Piece goods are cut into shaped components Left fly and zipper are sewn
Form and attach front and back pockets
Attach back yokes to left and right back panels Belt loops are cut and sewn

Country B

Attach zipper to right fly
Join right and left front panels
Join right and left back panels
Join front and back panels
Join waistband to the front and back panels Legs are hemmed
Buttons are attached
Belt loops and labels are attached
Assembled garment undergoes finishing and packing operations

PRODUCTION PLAN II

Country A

Piece goods are cut into shaped components Left fly and zipper are formed and attached Form and attach front and back pockets
Attach back yokes to left and right back panels Belt loops are cut and sewn

Country B

Attach zipper to right fly
Join right and left front panels
Join right and left back body panels
Join front and back panels- stitching sideseams and inseams

Country A

Join waistband to front and back panels
Hem leg
Sew buttonholes and buttons
Assembled garment undergoes finishing and packing operations

PRODUCTION PLAN III

Country A

Piece goods are cut into shaped components Left fly and zipper are formed and attached Form and attach front and back pockets
Belt loops are cut and sewn
Attach back yokes to left and right back panels

Country B

Attach zipper to right fly
Join right and left front panels

Country A

Join right and left back body panels
Join front and back body panels
Join waistband to front and back body panels Attach buttons
Hem legs
Assembled garment undergoes finishing and packing operations

ISSUE:

What is the country of origin of the subject jeans?

LAW AND ANALYSIS:

On December 8, 1994, the President signed into law the Uruguay Round Agreements Act. Section 334 of that Act 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:"

6201-6208 (1) 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 jeans are classifiable under heading 6203, Harmonized Tariff Schedule of the United States (HTSUS). 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 subject jeans are assembled in both Country A and Country B, the good is not wholly assembled in a single country as per Section 102.21 (c)(2).

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, nor wholly assembled in 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". In the case of the subject merchandise, assembly occurs in both Country A and Country B. In production plan I, the most important assembly occurs in Country B, as it is in this country that the majority of the garment is assembled to completion. In production plan II, the most important assembly occurs in Country B where the majority of the garment is assembled to completion.

In your submission, concerning production plan III, you state that the country of origin of the pants is Country B, where the front rise is completed and you cite Headquarters Ruling Letter (HRL) 958926, dated May 3, 1996, in support of your position. In HRL 958926, Customs dealt with a country of origin determination for men's woven trousers and four production plans were submitted for our review. Customs determined that in production plans I, III and IV, the most important assembly occurred in the country where the front and back pockets were sewn and the front rise was joined with the zipper attached. In production plan II, the most important assembly occurred in the country where the front and back rise were joined with the zipper attached and the in-seams and the out-seams were sewn.

HRL 958926 is distinguishable from the instant case on the facts as presented. In this case, in production plan III, the assembly operations occurring in Country B are as follows: the zipper is attached to the right fly and the right and left front panels are joined. Whereas, in HRL 958926, the following operations occur in the country in which origin is conferred: the front rise is joined with the zipper attached and the front and back pockets are also attached. In addition in this case, unlike in production plan II in HRL 958926, the in-seams and out-seams are not assembled in the same country as the front rise. Given these facts and the other operations being performed in Country A, the operations performed in Country B do not confer origin on the pants. Therefore, for production plan III, the most important assembly occurs in Country A.

HOLDING:

In production plans I and II, the country of origin for the men's jeans is Country B.

In production plan III, the country of origin for the men's jeans is Country A.

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 respect.

Should it be subsequently determined that the information furnished is not complete and does not comply with 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 recommend 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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