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HQ 959418





July 18, 1996

CLA-2 RR:TC:TE 959418 NLP

CATEGORY: CLASSIFICATION

John W. Whitaker, Esq.
O'Neill & Whitaker, Inc.
1809 Baltimore Avenue
Kansas City, Missouri 64108

RE: Country of origin of men's woven cotton shirt; Section

Dear Mr. Whitaker:

This is in reply to your letter dated June 28, 1996, on behalf of your client, Winning Ways, Inc., requesting a country of origin determination for men's woven cotton shirts pursuant to Section 334 of the Uruguay Round Agreements Act.

FACTS:

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

COUNTRY A

Cutting of fabric
Assembly of individual component parts: collar, front plackets, pockets, sleeve placket and cuffs

COUNTRY B

Assembly of the above component parts to form the garment: labeling and shoulder setting: front panels and back panels are joined at the shoulder seam sleeve setting: sleeves are attached to the shirt side seaming: left and right side seams are sewn collar and cuffs setting bottom hemming

COUNTRY A

Washing the garment
Trimming of loose threads
Quality control inspection, pressing, folding and packing

ISSUE:

What is the country of origin of the men's 100 percent woven cotton shirts?

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 Section 334 of that Act provides new rules of origin for textiles and apparel entered, or withdrawn from warehouse, for consumption, on and after July 1, 1996.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 subject merchandise is classifiable as men's woven shirts in heading 6205, 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 shirts 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. It is our position that in the production plan presented, the most important assembly operation occurs in Country B, as it is in this country that the majority of the garment is assembled to completion, discounting any minor subassemblies (as defined in Section 102.21, paragraph (6)) and finishing operations.

HOLDING:

The country of origin for the subject men's 100 percent woven cotton shirt 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 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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