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HQ 960404




May 12, 1997
CLA-2 RR:TC:TE 960404 jb

CATEGORY: CLASSIFICATION

Bonnie Cheng
Man Ka Knitting Garment Factory Ltd.
Fabrica de Artigos De Vestuario Manka Lda. Estrada Marginal da Areia Preta No. 45
Edificio Centro Polytex "3" Andar "A, B & C" Macau

RE: Country of origin determination for child's pullover style jacket; 19 CFR ?102.21(c)(4); most important assembly

Dear Ms. Cheng:

This is in reply to your letter dated March 27, 1997, requesting a country of origin determination for what you refer to as a "youth's" and "kid's" pullover style jacket. Samples were submitted to this office for examination.

FACTS:

The subject merchandise, referenced style numbers 47770 (sized S-XXL) and 57670 (sized S-L), consists of a boy's lined nylon pullover style, polyfil jacket featuring a partial placket front opening secured by a single snap button; embroidered logos on the sleeves, front of the garment, and nape of the neck at the back of the garment; two welt pockets on the front of the garment, a partial zipper opening at the left side seam, and ribbed knit collar, cuffs and waistband.

The manufacturing operations are as follows:

KOREA

100 percent nylon taffeta fabric is formed 100 percent nylon coated crinkle fabric is formed

TAIWAN
single knit jersey fabric is formed
100 percent polyester knit tricot is formed HONG KONG

100 percent polyester flat knit is formed

MACAU
fabric is cut into component pieces logos are embroidered front welt pockets are "opened"- we assume this includes the creation of the pockets half front placket is "opened"- we assume this includes the creation of the placket back neck patch is sewed to the back panel back lining is joined to the back panel front lining is joined to the front panel flat knit collar is joined sleeve lining is joined to the shell fabric front and back panels are joined together with the raglan sleeves side seams are sewn labels are sewn before packing

CHINA
flat knit cuffs are "joined"- we assume this means the knit cuffs are joined to the sleeves flat knit bottom is "joined"- we assume this means the knit bottom is joined to the front and back panels to create the waistband zipper is sewn at the left side seam snap button is sewn

We note that in reviewing the above stated manufacturing steps the sequence of the operations appears to be out of order and some operations may have been omitted. However, provided that the manufacturing operations you have indicated occurring in China are accurate, we will nonetheless rule on the facts as provided.

ISSUE:

What is the country of origin of 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 of the 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.

Paragraph (b)(6) of section 102.21 defines the term "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.

The subject merchandise is classifiable in heading 6201, Harmonized Tariff Schedule of the United States (HTSUS). As the subject merchandise undergoes assembly operations in both China and Macau that go beyond "minor attachments, minor embellishments and minor subassemblies", it does not qualify as "wholly assembled" in a single country. As such paragraph (c)(2) is inapplicable.

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 not knit, and the merchandise is not 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 garment, the "opening" of the pockets and the placket, the joining of the linings and collar to the front panel, the joining of the sleeve lining to the shell fabric, and the joining together of the front and back panels with the sleeves, in Macau, outweigh the assembly operations occurring in China and are more important to the identity of this garment. Accordingly, the country of origin of the boy's jacket is Macau.

HOLDING:

The country of origin of the subject child's pullover style jacket, referenced style numbers 47770 and 57670, 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 sections 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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