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HQ 961134




January 6, 1998

CLA-2 RR:CR:TE 961134 RH

CATEGORY: CLASSIFICATION

Mr. Steve S.L. Siu
Timeamerica, Inc.
1458 W 240th Street
Harbour City, CA 90710

RE: Country of Origin of Polo Shirts; 19 C.F.R ?102.21(c)(4); most important assembly operation

Dear Mr. Siu:

This is in reply to your letter dated April 15, 1997, requesting a ruling on the county of origin of polo shirts. You provided a sample of a shirt for us to examine.

FACTS:

The sample under consideration is a men's polo shirt constructed from 100 percent cotton knit fabric, which measures 10 stitches per linear centimeter in the horizontal direction and 12 stitches per linear centimeter in the vertical direction. It has a rib knit spread collar, a partial front opening with three button closures, short hemmed sleeves, an embroidered logo on the left chest and a hemmed bottom with side slits. The shirt is classifiable under subheading 6105.10.0010 of the Harmonized Tariff Schedule of the United States Annotated (HTSUSA).

Manufacture of the polo shirt occurs in two countries, as follows:

CHINA PANAMA
- form the fabric - sew side seams
- bleach or dye the fabric - apply embroidery
- cut the fabric to shape - inspect
- knit cotton collar - iron
- attach front placket - pack
- join shoulder seams
- attach collar, tab and label
- form button holes
- sew on buttons
- cut and sew sleeves to shoulders
- hem bottom and sleeves

ISSUE:

What is the country of origin of the polo shirt?

LAW AND ANALYSIS:

Pursuant to Section 334 of the Uruguay Round Agreements Act (codified at 19 U.S.C. ?3592), new rules of origin were effective for textile products entered, or withdrawn from warehouse, for consumption on or after July 1, 1996.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 C.F.R ?102.21), sets forth the general rules to determine country of origin. Thus, the country of origin of a textile product is 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 in which the good was wholly obtained or produced. As the subject garment has not been wholly obtained or produced in a single country, this section is inapplicable.

Section 102.21(c)(2) provides, in pertinent part:

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) provides, in pertinent part: "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 (1) If the good is not knit to shape and consists of two or more component parts, a change to 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.

Section 102.21(c)(2) is not applicable to the subject shirt as it is not wholly assembled in a single country. 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.

Section 102.21(c)(3) provides for goods that have been wholly assembled (with certain enumerated exceptions) in a single country, insular possession, or territory or which are knit to shape. Section 102.21(c)(3) is, therefore, inapplicable to the subject merchandise as it has not been wholly assembled in a single country, insular possession, or territory, nor is it a knit to shape good.

Section 102.21(c)(4) provides the first multi-country rule. It states the following:

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.

We compared the operations in this case to those performed in Headquarters Ruling Letter (HQ) 960059, dated February 24, 1997, which also addressed the country of origin of a short sleeve polo shirt. In that case, we held that the country of origin was where the fabric was cut into garment components, placket and collar attached, shoulder seams joined and rib knit cuffs sewn to the sleeve ends. Operations performed in a second country included attaching the sleeves to the body of the garment, sewing the side seams, hemming the bottom, forming buttonholes on the placket, sewing buttons to the placket, attaching labels, inspecting, ironing and packing.

All of the operations performed in the country conferring origin in HQ 960059, except attaching the rib knit cuff sleeves, occurred in China in the instant case, i.e., fabric formed, placket and collar attached, shoulder seams joined. Instead of rib knit cuffs, the sleeves are hemmed in this case.

Moreover, operations performed in the second country in HQ 960059 (such as attaching the sleeves, forming buttonholes on the placket, hemming the bottom, sewing buttons to the placket) also occur in China in this case. The only assembly that occurs in the second country in this case is sewing the side seams. Therefore, we find that the most important assembly operation occurs in China, in accordance with Section 102.21(c)(4).

HOLDING:

In accordance with Section 102.21(c)(4), the country of origin of the polo shirt is China.

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 C.F.R. ?177.9(b)(1). This section states that 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 C.F.R. 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 C.F.R. ?177.2.

Sincerely,

John Durant, Director
Commercial Rulings Division

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