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NY D81786




September 28, 1998

CLA-2-RR:NC:TA:N3:358 D81786

CATEGORY: CLASSIFICATION

TARIFF NO.:6204.62.4065

Mr. Arthur K. Purcell
Neville, Peterson & Williams
80 Broad Street 34th Floor
New York, NY 10004

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

Dear Mr. Purcell:

This is in reply to your letter dated August 28, 1998, on behalf of your client Mamiye Brothers Inc., requesting a classification and country of origin determination for certain girls' cotton denim shorts, style EJ 0204, which will be imported into the United States.

FACTS:

The subject denim shorts have a front fly with button and zipper closure, two front slash pockets and two rear patch pockets with fabric flaps and velcro closures. A fabric hammer loop is set in place at one side seam and attaches to the lower portion of one rear pocket. The waistband features six denim belt loops. The two center rear belt loops have embroidery tape overlays in contrast colored, floral designs. The same fabric embroidery tape decorates the garment sides from the pocket base to the leg openings. A textile applique with embroidery depicting Pooh and Piglet decorates a front pant leg. A decorative rectangular shaped fabric label indicating the name Pooh, with flower petals used to convey the letter "o", is sewn to one rear pocket. The shorts will be sized for girls 4-6x and 7 to 16.

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

CHINA

- Embroidery placed on left front panel
- Belt loops are made
- Tapes are attached on front panel side
- Front pockets are set
- Woven patch is set on back panel
- Back pocket flaps and Velcro's set
- Hammer loop is set on left back panel
- Double needle fell back yokes
- Stay stitch 4 belt loops on waistline

These components together with other cut but unconstructed components will be sent to El Salvador, where final assembly will be completed by sewing operations.

El Salvador

- Set zipper and stitch front crotch
- Double needle fell back rise
- Overlock close outseams (sew panels together) - Stay stitch 2 belt loops on waistline
- Set waistband
- Trim and close waistband front
- Tack belt loops to waistband
- Stonewash garment
- Bartack fly, belt loops, and pockets
- Sew eyelet button hole
- Sew front tack button
- Iron (press)
- Finish and pack

ISSUE:

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

CLASSIFICATION:

The applicable subheading for the girl's denim shorts, style EJ 0204, will be 6204.62.4065, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for girls' trousers, bib and bib brace overalls, breeches and shorts, of cotton, other, shorts, girls', other. The rate of duty will be 17.3 per cent ad valorem.

Girls' cotton denim shorts fall within textile category designation 348. 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 El Salvador, 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 multiple operations performed in El Salvador constitute the most important assembly processes. The aggregate sum of the various assembly operations performed in El Salvador, in terms of manufacturing complexity and quantity of procedures performed, outweigh the assembly operations occurring in China and are more important to the identity of the garment. Accordingly, the country of origin of the girls' denim shorts is El Salvador.

HOLDING:

The country of origin of the girls' denim shorts, style EJ 0204, is El Salvador. Based upon international textile trade agreements products of El Salvador are not currently subject to quota or the requirements 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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