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NY C86990





April 21, 1998

CLA-2-RR:NC:TA:N3:358 C86990

CATEGORY: CLASSIFICATION

TARIFF NO.:6203.42.4035, 6203.42.4060

Mr. Frank J. Desiderio
Grunfeld, Desiderio, Lebowitz & Silverman 245 Park Avenue 33rd Floor
New York, NY 10167-33397

RE: Classification and country of origin determination for boys' denim pants and shorts; 19 CFR 102.21(c)(4)

Dear Mr. Desiderio:

This ruling replaces ruling number NY C86375, which had the incorrect textile category number for all styles. The following is a corrected letter.

This is in reply to your letter dated April 7, 1998, on behalf of your client, Rays The Glorious Limited, requesting a classification and country of origin determination, for two styles of boys' denim cotton trousers, style numbers 46090304984(HD0553T) and C70600878490(R47551T) and two styles of boys' denim cotton shorts, style numbers 470600857490(HD0722T) and C70903579462(HD0563T).

FACTS:

Both trouser styles have two front and two rear pockets(style number HD0553T also has two side pockets), a metal zipper fly opening, a metal button closure at the waistband opening, a partially elasticized rear waistband(trousers only), 5 belt loops and a hemmed bottom. Both styles are sized for boys 4 to 7.

The manufacturing operations for the pants and shorts, according to your submission, are as follows:

I. ORIGIN OF COMPONENTS

A. Macau
-Denim cotton fabric is formed.

B. HONG KONG
-Metal zipper is made.

C. CHINA
-Metal button is made.

II. MANUFACTURING STEPS
a. CHINA
-Fabric is cut into component parts.
-Waistband is sewn.
-Sewing of pockets to leg panels.
-Zipper is sewn to one of the leg panels.

B. HONG KONG
-Attach right fly to left and right front leg panels(front rise). -Attach left and right back panels(back rise). -Attach front and back panels(sideseams and inseams). -Attach waistband to front and back panels. -Attach woven tape to waistband(for style number HD0722T only). -Attach polyester taping to left and right front leg panels(for style number R4751T only). -Hemming

C. CHINA
-Button and button holes are sewn.
-Belt loops are attached.
-Bartacking and rivet tacking.
-Trimming and quality control.
-Washing, ironing and packing.

ISSUE:

What are the classification and country of origin of the subject merchandise?

CLASSIFICATION:

The applicable subheading for the boys' pants, styles 460903084984(HD0553T) and C70600878490(R47551T), will be 6203.42.4035, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for boys' trousers, bib and brace overalls, breeches and shorts, of cotton, other, trousers and breeches, blue denim. The rate of duty will be 17.3 percent ad valorem.

The applicable subheading for the boys' shorts, styles 470600857490(HD0722T) and C70903579462(HD0563T), will be 6203.42.4060, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for boys' trousers, bib and brace overalls, breeches and shorts, of cotton, other, shorts. The rate of duty will be 17.3 percent ad valorem.

Boys' denim cotton trousers and shorts fall within textile category designation 347. The designated textile and apparel categories may be subdivided into parts. If so, visa and quota requirements applicable to the subject merchandise may be affected. 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.

COUNTRY OF ORIGIN - 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 materials 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) in pertinent part 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":

HTSUSA Tariff shift and/or other requirements

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

Accordingly, as the subject merchandise undergoes assembly operations in both China and Hong Kong, it does not qualify as "wholly assembled" in a single country. As such, Section 102.21(c)(2) is inapplicable.

Section 102.21(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 neither knit, nor 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 merchandise, the most important assembly or manufacturing operations occur in Hong Kong. It is in this location where the assembly of all the component pieces occurs except for the attachment of the pockets, the attachment of the zipper to one of the pant legs, the button and button hole fabrication and the attachment of the belt loops. The assembly operations performed in Hong Kong, in terms of manufacturing complexity and quantity of procedures performed, outweigh the minor assembly operations and finishing operations occurring in China and are more important to the identity of the garments. Accordingly, the country of origin of the boys' denim cotton trousers and shorts is Hong Kong.

HOLDING:

The country of origin of the boys' pants, styles 460903084984(HD0553T) and C70600878490(R47551T), and the boys' shorts, styles 470600857490(HD0722T) and C70903579462(HD0563T), is Hong Kong. Based upon international textile trade agreements products of Hong Kong are subject to quota and the requirement of a visa.

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.

This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177). 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.

A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Bruce Kirschner at 212-466-5865.

Sincerely,

Robert B. Swierupski
Director,

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