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HQ 960125





March 19, 1997

CLA.-2 RR:TC:TE 960125 CAB

CATEGORY: CLASSIFICATION

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

RE: Country of origin of a knit sweater; Section 102.21(c)(3), Customs Regulations

Dear Sir/Madam:

This is in response to your inquiry of December 26, 1996, requesting a country of origin determination for a sweater pursuant to Section 102.21, Customs Regulations, 19 CFR ?177.2 , on behalf of your client Peninsula Knitters Ltd. A sample was submitted for examination and will be returned to you under separate cover.

FACTS:

The sample at issue, referred to as Style S-123, is a knitted 100 percent cotton short sleeve V-neck sweater. The manufacturing process for Style 123 is as follows:

Country A

Front and back panels are knit to shape

Country B

Sleeves and neck trim are knit and cut
All of the components are linked into a finished sweater Garment undergoes finishing operations

Although not stated in your submission, Customs is assuming that Countries "A" and "B" are used herein to denote, respectively, two different countries, territories, or insular possessions, and such countries will not include Israel or a signatory of the NAFTA.

ISSUE:

What is the country of origin of the subject sweater?

LAW AND ANALYSIS:

Pursuant to Section 334 of the Uruguay Round Agreements Act (codified at 19 USC Section 3592), new rules of origin were effective for textile products entered, or withdrawn from warehouse, for consumption on or after July 1, 1996. These rules were published in the Federal Register, 60 Fed. Reg. 46188 (September 5, 1995). Section 102.21, Customs Regulations (19 CFR Section 102.21), sets forth the general rules to determine country of origin. Thus, the country of origin of a textile product will be determined by a hierarchy of rules set forth in paragraphs (c)(1) through (c)(5) of Section 102.21.

Section 102.21(c)(1) sets forth the general rule for determining the country of origin of a textile or apparel product when the good is wholly obtained or produced in a single country, territory, or insular possession. The subject sweater is not wholly obtained or produced in a single country, territory, or insular possession, thus, Section 102.21(c)(1) is inapplicable.

Section 102.21(c)(2) provides for instances where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1) of this section. Section 102.21(c)(2) states:

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.

Section 102.21(e) states "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:"

6101-6117 (3) If the good is knit to shape, a change to heading 6101 through 6117 from any heading outside that group, provided that the knit-to-shape components are knit in a single country, territory, or insular possession.

The subject sweater is classifiable under Heading 6110, which provides for, knitted sweaters and similar articles. The applicable tariff shift rule requires a tariff shift to heading 6101 through 6117 from any heading outside that group. In this case, the good is knit to shape however, it fails to meet the applicable tariff shift requirements as it is classifiable under Heading 6110, HTSUSA, and the sweater components are classifiable under Heading 6117, HTSUSA, which is not outside the specified group (heading 6101-6117). Therefore, the tariff shift rule is not met and Section 102.21(c)(2) is inapplicable.

Section 102.21(c)(3) applies where the country of origin of a textile or apparel product cannot be determined pursuant to paragraph (c)(1) or (c)(2) and where the merchandise consists of either a good that was knit to shape in a single country, or (with an exception for goods of certain specifically enumerated headings), was wholly assembled in a single country, territory, or insular possession.

Section 102.21(c)(3)(i) provides the following:

If the good was knit to shape, the country or origin of the good is the single country, territory, or insular possession in which the good was knit;....

Section 102.21(b) states the following:

(3) Knit to shape. The term knit to shape applies to any good of which 50 percent or more of the exterior surface area is formed by major parts that have been knitted or crocheted directly to the shape used in the good, with no consideration being given to patch pockets, appliques, or the like. Minor cutting, trimming, or sewing of those major parts will not affect the determination of whether a good is "knit to shape."

(4) Major parts. The term major parts means integral components of a good but does not include collars, cuffs, waistbands, plackets, pockets, linings, paddings, trim, accessories, or similar parts.

The front and back panels are knit to shape in Country A, while the sleeves and neck trim are knit and cut in Country B. In this case, the front and back panels are major parts that have been knit to shape. The major parts comprise over 50 percent of the exterior surface of the garment. Therefore, the instant sweater is considered to be a knit to shape garment. In accordance with Section 102.21(c)(3), the country of origin of the subject knit to shape sweater is Country A, the single country where the sweater is knit to shape.

HOLDING:

The country of origin of the sweater pursuant to Section 102.21(c)(3) 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, 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

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