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HQ 962188




October 6, 1998
CLA-2 RR:CR:TE 962188 jb

CATEGORY: CLASSIFICATION

Richard G. Seley
Rudolph Miles & Sons, Inc.
P.O. Box 11057
El Paso, Texas 79983

RE: Country of origin determination for women's suit jacket; 19 CFR Section 102.21(c)(4); most important assembly or manufacturing operation

Dear Mr. Seley:

This is in reply to your letter dated August 3, 1998, on behalf of your client, C.M.T. Industries, Inc., requesting a country of origin determination for certain completed women's suit jackets. Although in your letter you do not specifically identify the fabric content of the subject merchandise, the tag on the inside of the submitted sample indicates that it is composed of 50 percent silk, 43 percent rayon and 7 percent nylon fabric.

The manufacturing operations for the subject merchandise are as follows:

United States or Third Country fabric is formed buttons are sourced

United States fusible, lining, inner lining and outer shell fabrics are cut to pattern fusible material will be laminated to outer shell fabric in those cases where reinforcement is required

Mexico lining subassembly will be sewn from 12 panels left and right sleeves are sewn from two outer shell fabric panels with a two inch inner lining band at the cuffs, respectively collar section is sewn from seven outer shell fabric panels two pockets are sewn from one outer shell fabric panel and one lining panel, each two outer shell fabric panels are sewn together to form the left front section; pocket is attached two outer shell fabric panels are sewn together to form the right front section; pocket is attached back panel is sewn from four outer shell fabric panels with two inner lining material panels

United States remaining sewing operations are performed resulting in the completed women's suit jacket those operations include: easing the back into the front by « inch to create a curve going forward on the shoulder; on the side seam, the top half of the front is eased in to give the bust a curved shape in the front top half of the facing is eased in by 3/8 inch to the front allowing the lapel to shape easier to the front once pressed; on the bottom half, the front is eased in by 1/4 inch so the fronts will not ride up or pull the garment open top collar, as it is being sewn to the coat, is eased in 1/4 inch on both sides; under collar is eased into the garment as it is sewn in so the collar will not have the points pulling up after pressing and the collar will lay flat upper part of sleeve is eased in by one inch, and the front part by 3/4 inches while sewing into the armhole to form a sleeve head; the back side of the sleeve is eased in by 3/4 inches while sewing to form a lesser sleeve head lining is eased into the upper front part of the jacket by « inch to help shape part of the bust; the bottom half is sewn absolutely flat so it will not push out the front of the garment around the neckline, the lining is sewn with a 3/8 inch ease so not to deform the collar shaping and thus will drape after pressing; this step ensures the tailored fit of the jacket garments are pressed button holes are made, buttons are set final inspection quality audit final appearance touch up packing and shipping

ISSUE:

What is the 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 completed women's suit jacket 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". For purposes of the tariff, a women's suit jacket is classified in heading 6204, HTSUS.

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.

There are two issues which need to be addressed with respect to the country of origin of the subject merchandise: the origin of the subject merchandise based on the classification of the "garment parts" manufactured in Mexico, before completion into the finished jacket in the United States, and the origin of the subject merchandise based on the classification of the finished jacket, after final assembly in the United States. In the case of the unfinished jacket, that is, the garment parts imported from Mexico, we look to GRI 2(a) for guidance:

General Rule of Interpretation 2(a) states:

Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as entered, the incomplete or unfinished article has the essential character of the complete or finished article. It shall also include a reference to that article complete or finished (or falling to be classified as complete or finished by virtue of this rule), entered unassembled or disassembled.

GRI 2(a) establishes a two pronged rule for classification purposes. Thus, prior to making a classification determination for this particular garment, the following is required as per GRI 2(a): 1) the incomplete or unfinished garment must have the essential character of the completed or finished garment based on some assembly operation that has been done to the garment; or 2) a sufficient number or type of elements should be present to constitute a substantially complete but unfinished product at the time of importation. If either prong is satisfied, the terms of the note are satisfied.

With respect to the first prong, the subject merchandise can be deemed to have the essential character of a jacket only if some significant assembly operations have taken place joining some of the components of the jacket together. We find that at the time of importation there are insufficient assembly operations performed on the different components to warrant finding the essential character as a suit jacket. Although there are a number of components which are sewn together to form for example, a completed sleeve or part of a front panel, there are no subassemblies of any of the outer shell panels to other outer shell panels. This "outershell to outershell" subassembly is critical to creating the identity of the garment. Consequently, we find the absence of such a subassembly detracts from a finding of essential character as a jacket.

In addressing the second prong, that is, that a sufficient number or type of elements be present at the time of importation, the Explanatory Notes to the Commodity Description and Coding System (EN) to GRI 2(a) state, in pertinent part:

(VII) For the purposes of this Rule, "articles presented unassembled or disassembled" means articles the components of which are to be assembled either by means of fixing devices (screws, nuts, bolts, etc.) or by riveting or welding, for example, provided only assembly operations are involved.

No account is to be taken in that regard of the complexity of the assembly method. However, the components shall not be subjected to any further working operation for completion into the finished state.

In the case of the subject garment parts imported from Mexico, as at the time of importation the subject merchandise is comprised of most of the essential jacket components, including the lining, it is the opinion of this office that the type of elements which are critical to the subject garment are present. Accordingly, it is the opinion of this office that the subject merchandise consists of an unfinished jacket classifiable in heading 6204, HTSUS. Similarly, the completed jacket is also classifiable in heading 6204, HTSUS.

In the case of the unfinished jacket imported from Mexico, as the only assembly operations which occur take place in Mexico, the country of origin of the unfinished jacket is Mexico. In the case of the completed jacket however, as assembly operations occur in both Mexico and the United States, the terms of the tariff shift are not met and we proceed to paragraph (c)(3).

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 completed jacket is not knit to shape and assembly operations occur in more than one 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 completed jacket, the most important assembly operations occur in the United States, that is, where the garment goes through its final assembly operations, giving rise to the finished tailored garment.

Section 304 of the Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless excepted, every article of foreign origin imported into the United States shall be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article (or its container) will permit, in such a manner as to indicate to the ultimate purchaser in the United States the English name of the country of origin of the article. Part 134 of the Customs Regulations implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304.

Therefore, in the case of the garment components that are imported from Mexico, only the outermost container must be marked as a product of Mexico (i.e., "Made in Mexico"). Goods determined to be articles of U.S. origin are not subject to the country of origin marking requirements of 19 U.S.C. 1304. As the jacket components become a product of the U.S. (after assembly operations are completed in the U.S.), the finished women's suit jackets are not subject to the marking requirements. Whether articles may be marked as "Made in the USA" is an issue under the authority of the Federal Trade Commission (FTC). We suggest that you contact the FTC Division of Enforcement, 6th and Pennsylvania Avenue, N.W., Washington, D.C. 20508 on the propriety of proposed markings indicating that articles are made in the U.S.

HOLDING:

The country of origin of the unfinished jacket, at the time of importation, is the country in which the assembly occurs, that is Mexico.

The country of origin of the subject completed women's suit jacket, is the United States.

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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