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HQ 959987





January 22, 1997

CLA-2 RR:TC:TE 959987 jb

CATEGORY: CLASSIFICATION

Louisa Lam
Tak Lei Si
Av. Venceslau de Morais 11
13 Andar B Edif. Ind. Kin IP
Macau

RE: Country of origin determination for men's lined shorts; 19 CFR ?102.21(c)(4); most important assembly or manufacturing process

Dear Ms. Lam:

This is in reply to your letter, dated November 21, 1996, received by fax, requesting a country of origin determination for men's lined shorts which will be imported into the United States. Although no samples were submitted to this office, an illustration of the garment was provided for examination.

FACTS:

The subject garment, referenced style number 17924414, consists of a pair of men's shorts made of 100 percent polyester with a 100 percent nylon lining. The men's shorts feature an embroidered logo on the front panel, two side seam pockets, and a drawcord along the elasticized waistband for tightening. The manufacturing operations are as follows:

TAIWAN

- polyester fabric is formed;
- nylon fabric is formed.

CHINA (part I)

- fabric is cut into component pieces;
- logo is embroidered;
- side seam pockets are sewn.

MACAU

- front and back rise are sewn for the shell fabric; - side seams are sewn for the shell fabric; - *crotch is joined for the shell fabric; - front and back rise is sewn for the lining; - side seams are sewn for the lining;
- *crotch is joined for the lining.

* We assume this indicates the sewing of the inseams.

CHINA (part II)

- top stitching is sewn on the front and back rise of the shell fabric; - elastic waistband is sewn;
- drawcord is attached;
- shell fabric and lining are attached;
- bottom of shorts, including side vents, are hemmed; - bartack on crotch and side vents is sewn.

MACAU (part II)

- labels are sewn;
- ironing and packing.

ISSUE:

What is the proper country of origin for 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Section 334 of that Act (codified at 19 U.S.C. 3592) provides new rules of origin for textiles and apparel entered, or withdrawn from warehouse, for consumption, on and after July 1, 1996.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." 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 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 classified as men's shorts in heading 6203, Harmonized Tariff Schedule of the United States (HTSUS). In the case of the subject garments important assembly operations occur in both China and Macau. As such, section 102.21(c)(2) is not applicable.

Section 102.21(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;

(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 single country, territory, or insular possession in which the good was wholly assembled.

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

Section 102.21(c)(4) states that, "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 men's shorts, the most important assembly process occurs at the time the garment shell and lining are made, including the joining of the front and back rise, the side seams and the crotch (inseams). Accordingly, the country of origin of the subject merchandise is the country in which those operations occur, that is, Macau.

HOLDING:

The country of origin of the subject men's shorts, referenced style number 17924414, is Macau.

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
Tariff Classification
Appeals Division

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