HQ 959397 - Country of origin determination for twill shorts; 19 CFR Section 102.21(c)(2) and (e) - United States International Trade Commision Rulings

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HQ 959397

July 25, 1996

CLA-2 RR:TC:TE 959397 NLP

CATEGORY: CLASSIFICATION

Mr. Don Stein
Manatt Phelps Phillips
1501 M Street, N.W., Suite 700
Washington, D.C. 20005

RE: Country of origin determination for twill shorts; 19 CFR Section 102.21(c)(2) and (e)

Dear Mr. Stein:

This is in reply to your letter of June 25, 1996, on behalf of Tarrant Apparel Group (dba Fashion Resource), requesting a country of origin determination for besom cuff twill shorts. A sample of the shorts was submitted for our examination.

FACTS:

The garment at issue is a pair of women's shorts made of 100 percent woven cotton. The shorts feature three pockets (one rear and two front), a zipper, front pleats and cuffs. You have presented this office with two different manufacturing scenarios by which the subject merchandise will be produced. They are described as follows:

SCENARIO #1

HONG KONG AND CHINA

Fabric is formed

HONG KONG

Cut component pieces: front and back panels, placket, waistband, pocket flap, pockets and beltloops

Sewing: sew front and back dart sew front panel besom pocket sew back panel besom pocket and pocket flap sew placket and zipper join front and back rise join inseam and outseam set waistband and sew main label sew pockets and beltloops on hemming
Bar tacking
Putting eyehole

CHINA

Washing
Buttoning
Ironing
Checking garment and cleaning thread
Packing

SCENARIO 2

Scenario 2 is identical to Scenario 1 except that the fabric is cut in China.

ISSUE:

What is the country of origin of the subject besom cuff twill shorts in the two manufacturing scenarios presented?

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 Section 334 of that Act provides new rules of origin for textiles and apparel entered, or withdrawn from warehouse, for consumption, on and after July 1, 1996.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 shorts are classifiable under heading 6204, 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.

In this instance, the subject garment consists of more than two component parts and, in both scenarios, it is wholly assembled in a single country, that is, Hong Kong. Therefore, in accordance with Section 102.21(c)(2) and Section 102.21(e), the country of origin of the subject garment is Hong Kong.

In your submission to this office, you request that Customs confirm that any goods produced in Hong Kong utilizing Hong Kong's Outward Processing Arrangement will be deemed to be presumptively of Hong Kong origin for purposes of Section 102.21, Customs Regulations. Customs cannot make such a confirmation. Each request for a country of origin determination is made on a case by case basis, which allows Customs to carefully consider the particulars of individual manufacturing scenarios. Pursuant to the Uruguay Round Agreements Act, for textile or apparel products entered, or withdrawn from warehouse for consumption, on or after July 1, 1996, Customs will base its country of origin determinations on U.S. law only, specifically Section 102.21, Customs Regulations.

HOLDING:

In both Scenarios 1 and 2, the country of origin of the besom cuff twill shorts is Hong Kong.

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 C.F.R. 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 C.F.R. 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 C.F.R. ?177.2.

Sincerely,

John Durant, Director
Tariff Classification Appeals

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