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NY C88095




June 10, 1998

CLA-2-RR:NC:3:353 C88095

CATEGORY: CLASSIFICATION

Mr. John B. Pellegrini
Ross & Hardies
Park Avenue Tower
65 East 55th Street
New York, NY 10022-3219

RE: Classification and country of origin determination for knit hats; 19 CFR 102.21(c)(4)

Dear Mr. Pellegrini:

This is in reply to your letter dated May 18, 1998, on behalf of Paris Accessories, Inc., requesting a classification and country of origin determination for Style 92-643 and 92-653 knit hats which will be imported into the United States. Samples of the hats in their finished condition and the condition in which they will be shipped from Taiwan to Vietnam were provided.

FACTS:

The subject merchandise consists of Style 92-643 and 92-653 man-made fiber knitted hats.

The manufacturing operations for the hats are as follows:

Taiwan

Continuous circular knitted fabric is produced in Taiwan. There is a waffle knit at intervals which will form the brim of the hat. The fabric is then shipped to Vietnam.

Vietnam

The knit fabric will be separated into individual pieces by pulling of demarcation threads. It is then cut and overlock stitched to form the crown, steam ironed and size fitted. After inspection, labels are sewn in and hang tags affixed.

ISSUE:

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

CLASSIFICATION:

The applicable subheading for the style 92-643 and 92-653 man-made fiber knit hats will be 6505.90.6090, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for "Hats and other headgear, knitted or crocheted, or made up from lace, felt or other textile fabric, in the piece (but not in strips), whether or not lined or trimmed; hair-nets of any material, whether or not lined or trimmed: Other: Of man-made fibers: Knitted or crocheted or made up from knitted or crocheted fabric: Not in part of braid...Other: Other: Other." The rate of duty will be 31.8 cents per kilogram plus 11.3% ad valorem.

Style 92-643 and 92-653 man-made fiber knit hats fall within textile category designation 659. 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":

HTSUS Tariff shift and/or other requirements

6505.90 (2) If the good does not consist of two or more components, a change to subheading
6505.90 from any other heading, except from heading 5007, 5111 through 5113, 5208 through 5212, 5407 through 5408, 5512 through 5516, 5602 through 5603, 5608, 5801 through 5804, 5806, 5808 through 5811, 5903, 5906 through 5907, and 6001 through 6002, and provided that the change is the result of a fabric-making process.

Section 102.21(e) states that merchandise classifiable under 6505.90 that is composed of fabric of headings 6001 through 6002 is excepted by the tariff shift rule. Accordingly, as the fabric does not meet tariff shift requirements, 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.

Although the subject hats are not knit to shape, they are not considered wholly assembled as per Section 102.21(c)(3)(ii) because the hats do not consist of two or more components.

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 fabric making constitutes the most important manufacturing process. Accordingly, the country of origin of the style 92-643 and 92-653 man-made fiber knit hats is Taiwan.

HOLDING:

The country of origin of the style 92-643 and 92-653 man-made fiber knit hats is Taiwan. Based upon international textile trade agreements products of Taiwan 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 Kenneth Reidlinger at 212-466-5881.

Sincerely,

Robert B. Swierupski
Director,

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