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HQ 960651




November 21, 1997
CLA-2 RR:TC:TE 960651 jb

CATEGORY: CLASSIFICATION

K.P. Au
Janex Limited
Flat D2, 2/F, Phase 5
Hong Kong Spinners Bldg
760-762 Cheung Sha Wan Road
Kowloon, Hong Kong

RE: Country of origin determination for woman's knit pullover; 19 CFR ?102.21(c)(3); knit to shape

Dear Mr. Au:

This is in reply to your letter dated March 24, 1997, requesting classification under the Harmonized Tariff Schedule of the United States (HTSUS) and a country of origin determination for a woman's knit pullover which will be imported into the United States. Samples of the garment's component pieces, before assembly, a finished garment, and accompanying photographs were submitted to this office for examination.

FACTS:

The subject merchandise, is a woman's knit pullover made of 100 percent acrylic fabric, featuring long sleeves and a round neckline. The fabric of the garment consists of a two by two rib knit construction which has more than nine stitches per two centimeters measured in the horizontal direction. The pullover is intended for wear on the upper part of the torso, extending from the wearer's neck and shoulders to the hips.

As per your letter, the manufacturing operations for the subject garment are as follows:

Country A front and back panels are knit to shape

Country B left and right sleeve panels are knit to shape collar is knit all panels are linked to form the finished garment Although in referencing the manufacturing operations for the subject garment you state that the front, back and sleeve panels are "knit to shape", this office disagrees with the use of the term "knit to shape" with respect to the front panel, for the reasons discussed below.

ISSUE:

1. What is the proper classification for the subject merchandise?

2. What is the country of origin of the subject merchandise?

LAW AND ANALYSIS:

Classification

Classification of goods under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA) is governed by the General Rules of Interpretation (GRI's). GRI 1 provides that classification shall be determined according to the terms of the headings and any relative section or chapter notes. Merchandise that cannot be classified in accordance with GRI 1 is to be classified in accordance with subsequent GRI's taken in order.

Heading 6110, HTSUS, provides for sweaters, pullovers, sweatshirts, waistcoats (vests) and similar articles, knitted or crocheted. Accordingly, the subject knit pullover is properly classified in subheading 6110.30.3055, HTSUSA, which provides for, sweaters, pullovers, sweatshirts, waistcoats (vests) and similar articles, knitted or crocheted: of man-made fibers: other: other: other: other: other: women's or girls'.

Country of Origin

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:"

6101-6117 If the good is not knit to shape and consists of two or more component parts, a change to an assembled good of heading 6101 through 6117 from unassembled components, provided that the change is the result of the good being wholly assembled in a single country, territory or insular possession.

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.

Section 102.21(c)(b) states:

(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 subject merchandise is classifiable as a woman's knit pullover in heading 6110, HTSUS. In the case of the subject knit sweater, although you state that all of the panels are knit to shape, this office is of the opinion that the front panel is not knit to shape. An examination of the front panel reveals that at the top of that panel, in a semi-circular formation, the knit fabric changes from a two by two rib which comprises the rest of the panel, to a two by one rib. This changed pattern serves as a line of demarcation; that is, where the semi-circular shape is to be cut out, resulting in a round neckline. As the front and knit panels are knit in a straight horizontal line, without that cutting operation, the pullover would not have a neck opening. As such, the cutting to shape of the panel to form the neck contour goes beyond the "minor cutting" envisioned by section 102.21(c)(b).

However, in the case of the subject merchandise consideration must also be given to the fact that the subject sweater consists not only of the knit front panel, but a knit back panel and sleeves. Thus, although the front panel is not knit to shape because of the cutting of the neck, the back panel and sleeves are knit to shape. As stated in the definition of "knit to shape", section 102.21(c)(b), the term knit to shape applies to any good of which 50 percent or more of the exterior surface is formed by major parts that have been knitted or crocheted directly to shape. Accordingly, as the back panel and sleeves are major parts which constitute "50 percent or more" of the exterior surface of the good, the sweater qualifies as a knit to shape good. The terms of section 102.21(c)(2) make clear that a change to heading 6101 through 6117 must occur from any heading outside that group. In this case, before the sweater is completed it consists of multiple knit components classifiable in heading 6117, HTSUS. As heading 6117, HTSUS, is excepted by section 102.21(c)(2), the tariff shift is not applicable.

Paragraph (c)(3) states that, "Where the country of origin of a textile of 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;

In the case of the subject sweater, although the back panel and sleeves, are knit to shape and qualify the sweater as a knit to shape good, the knitting to shape of those panels does not occur in a single country. Accordingly, section (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 knitting of the left and right sleeve panels, the knitting of the collar, and the linking of all of the component pieces to form the finished garment, in Country B, constitute the most important assembly operations. Accordingly, the country of origin is conferred in Country B.

HOLDING:

The subject women's knit pullover is classified in subheading 6110.30.3055, HTSUSA, which provides for, sweaters, pullovers, sweatshirts, waistcoats (vests) and similar articles, knitted or crocheted: of man-made fibers: other: other: other: other: other: women's or girls'. The applicable rate of duty is 33.5 percent ad valorem and the quota category is 639.

The country of origin of the subject women's knit pullover is Country B.

The designated textile and apparel category may be subdivided into parts. If so, visa and quota requirements applicable to the subject merchandise may be affected. Since part categories are the result of international bilateral agreements which are subject to frequent renegotiations and changes, to obtain the most current information available, we suggest that you check, close to the time of shipment, the Status Report on Current Import Quotas (Restraint Levels), an internal issuance of the U.S. Customs Service, which is available for inspection at your local Customs office.

Due to the changeable nature of the statistical annotation (the ninth and tenth digits of the classification) and the restraint (quota/visa) categories applicable to textile merchandise, you should contact your local Customs office prior to importing the merchandise to determine the current status of any import restraints or requirements.

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 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
Commercial Rulings Division


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