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HQ 962035




July 29, 1998
CLA-2 RR:CR:TE 962035 jb

CATEGORY: CLASSIFICATION

Ms. Louisa Lam
Tak Lei Sei
Av. Venceslau De Morais 11
13 Andar B. Edif. Ind. Kin Ip
Macau

RE: Revocation of NY C88903; country of origin determination for men's outerwear jacket; 19 CFR Section 102.21(c)(4); most important assembly operation

Dear Ms. Lam:

On June 24, 1998, our New York office issued to you New York Ruling Letter (NY) C88903, which determined that the country of origin for certain men's outerwear jackets was China, the last country in which an important assembly or manufacturing process occurred. This letter is to inform you that both the analysis and the determination in that ruling letter are incorrect. As such NY C88903 is revoked. The correct analysis and determination for the subject merchandise is as follows below.

FACTS:

The subject merchandise consists of an insulated jacket with a shell and lining of woven nylon fabric and a nonwoven batting. The manufacturing operations for the jackets are described as follows:

Korea nylon woven fabric is formed for shell and lining

China polyester polyfil is formed

Taiwan
100 percent polyester tricot for pockets is formed

China (Part I) shell, lining and fill are cut into components sew cut pieces of shell fabric on back panel sew cut pieces of shell fabric on front panel embroidered at left chest pockets sewn on front panels of shell collar is sewn facing is sewn main and size label sewn under neckline pocket is sewn on lining of front panel bottom of facing is sewn on lining of front panel quilted the lining fabric with polyfil on back panel quilted the lining fabric with polyfil on sleeves quilted the lining fabric with polyfil on front panel

Macau (Part I) front and back panels joined and sewn with top stitches at shoulder seam for shell fabric sleeves are joined and sewn to the body with top stitches for shell fabric side seam sewn for shell fabric for front and back panels collar sewn to body country of origin label sewn to back panel of lining care/composition label sewn on side seam of lining front and back panels joined at shoulder seam for lining and polyfil sleeves are joined for lining and polyfil side seam joined for lining and polyfil zipper sewn at center front

China (Part II) shell, polyfil, and lining joined elastic cuffs are sewn on sleeves facing is sewn on bottom drawcord and grommets put on bottom

Macau (Part II) final inspection packing

ISSUE:

What is the proper country of origin of the submitted 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.

As the subject merchandise is not wholly assembled in a single country, territory, or insular possession, the terms of the tariff shift are not met.

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 to shape and assembly does not occur in a single country, paragraph (c)(3) is inapplicable.

Paragraph (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 outerwear jackets, the most important manufacturing process occurs in Macau, the country in which the individual operations therein form both the jacket shell and the jacket lining. Accordingly, the country of origin of the subject men's outerwear jackets is Macau. See also HQ 959991, dated January 27, 1997, wherein the country of origin of a men's jacket was determined to be the country in which both the shell and lining were made.

HOLDING:

The country of origin of the subject merchandise 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 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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