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NY D81492




September 4, 1998

CLA-2-RR:NC:62:357 D81492

CATEGORY: CLASSIFICATION

Mr. Frank J. Desiderio
Grunfeld, Desiderio, Lebowitz & Silverman LLP 245 Park Ave.
New York, NY 10167-3397

RE: Classification and country of origin determination for a men's woven water resistant jacket; 19 CFR 102.21(c)(4)

Dear Mr. Desiderio:

This is in reply to your letter dated August 19, 1998, on behalf of Hwa Fuh Manufacturing Co. (HK) Ltd., in Hong Kong, requesting a classification and country of origin determination for a men's woven water resistant jacket which will be imported into the United States.

FACTS:

The subject merchandise consists of a men's woven water resistant jacket, style 830501773/5181, with an outershell composed primarily of a woven cotton/nylon blended fabric. The remainder of the shell is of a woven 100% nylon fabric. Both fabrics are treated for water resistance. The jacket, which is hip-length, has a full-front opening secured by a zipper closure, a roll-up hood which is concealed within the collar, elasticized cuffs and waistband, slant pockets at the waist, an inner chest pocket and a two-part lining which is mesh in the upper torso and woven in the lower.

The manufacturing operations for the jacket are as follows:

Taiwan:

Shell fabric of 70% cotton/30% nylon is woven and coated with polyurethane;

Nylon fabric comprising the front body fabric is woven;

Polyester mesh comprising the back body lining is knitted;

Korea:

Woven nylon fabric comprising balance of shell fabric is woven.

China:

Fabric is cut into component parts;

Fusing of interlining;

Embroidering;

Sewing of front panels with pockets;

Sewing of back body panels;

Sewing of sleeve panels;

Sewing of collar panels;

Sewing of front placket;

Sewing of cuffs with elastic band;

Sewing front lining panels with pockets;

Sewing of back lining panels.

Hong Kong:

1. Assembly of shell panels, including:

Front and back panels joined at shoulders;

Sleeve panels sewn to front and back panels at armholes;

Side seams of sleeve panels closed to form sleeves;

Side seams joining front and back panels closed;

Cuffs sewn to sleeves panels;

Collar sewn to front and back panels

2. Assembly of lining panels, including:

Front and back lining panels joined at shoulders;

Side seams joining front and back lining panels closed.

3. Assembly of hood panels;

4. Setting collar with hood;

5. Setting of zipper and front placket;

6. Shell and lining joined to form garment.

China:

Trimming threads, attaching snaps, ironing, attaching hangtags, packaging and packing.

ISSUE:

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

CLASSIFICATION:

The applicable subheading for the jacket will be 6201.92.1500, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for other men's or boys' water resistant anoraks, windbreakers and similar articles of cotton. The rate of duty will be 6.4 percent ad valorem.

This jacket falls within textile category designation 334. 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

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 occurs at the time of the assembly of the outer shell, including the joining of the front and back panels at the shoulders, the joining of the sleeve panels to the front and back panels at the armhole, the closing of the side seams of the sleeve panels to form the sleeves, the closing of the side seams to join the front and back panels, the sewing of the cuffs to the sleeve panels, the sewing of the collar to the front and back panels, the assembly of the inner lining, the joining of the front and back lining panels at the shoulders, the closing of the side seams joining the front and back lining panels, and the joining of the outer shell and the inner lining.

Accordingly, the country of origin of the jacket is Hong Kong.

HOLDING:

The country of origin of the jacket 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 W. Raftery at 212-466-5851.

Sincerely,

Robert B. Swierupski
Director,

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