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NY D83548




November 16, 1998

CLA-61-2-RR:NC:TA:359 D83548

CATEGORY: CLASSIFICATION

Mr. Lee Chee Wei
Senior Operations Manager
Bee Leong Industries, Sdn., Bhd.
Lot 53, Taman Perindustrian Bukit Minyak
14000 Seberang Perai Tengah
Penang, Malaysia

RE: Classification and country of origin determination for a woman's knitted sweater; 19 CFR 102.21(c)(3)

Dear Mr. Wei:

This is in reply to your letter dated October, 6, 1998, requesting a classification and country of origin determination for a woman's knitted sweater which will be imported into the United States.

FACTS:

The subject merchandise consists of a woman's knitted sweater which consists of 100% cotton fiber and has long sleeves and a u-neckline. The exterior surface of the fabric of the sweater is constructed from a 2X2 rib knit pattern which has less than nine stitches per two centimeters measured in the direction in which the stitches were formed. You also submitted a set of the knitted panels which comprise the finished sweater. We have retained these items for instructional purposes.

The manufacturing operations for the sweater are as follows:

(a) The four panels are knit-to-shape in Malaysia. They exhibit these characteristics:

(i)Front panel: self-start bottom (1X1 rib knit) which is continuously knit into the panel; finished edges at the sides; finished edges at the armholes and neck- line; unfinished edges at the top of the of the shoulders; no lines of demarcation present on the panel.

(ii) Back panel: self-start bottom (1X1 rib knit) which is continuously knit into the panel; finished edges at the sides, armholes and neckline; unfinished edges at the shoulders; no lines of demarcation present on the panel.

(iii)Two matching sleeve panels: self-start bottom (1X1 rib knit) which continues directly into the knitting on the panel; finished edges all around; no lines of demarcation present on the panels.

(b) The panels are assembled by "looping and stitching" into the finished sweater in China. The final processing of the sweater also takes place in china.

ISSUE:

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

CLASSIFICATION:

The applicable subheading for the sweater will be 6110.20.2020, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for sweaters, knitted or crocheted, of cotton, other, other, women's. The rate of duty will be 19% ad valorem.

The sweater falls within textile category designation 345. 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

6110.20.2020 If the good is knit-to-shape, a change to heading 6101 through
6117 from any heading outside that group, provided that the knit-to- shape components are knit in a single country, territory or insular possession

Section 102.21(e) states that the tariff shift must occur from a heading outside of the group (i.e. 6101-6117), but, since the knitted panels, as well as the knitted sweater, are all classified within the designated group, this requirement is not fulfilled. Accordingly, as the tariff shift required by the law does not take place, 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.

As the subject merchandise is knit-to-shape in a single country (Malaysia), Section 102.21(c)(3) applies.

HOLDING:

The country of origin of the sweater is Malaysia. Based upon international textile trade agreements products of Malaysia 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 Mike Crowley at 212-466-5852.

Sincerely,

Robert B. Swierupski
Director,

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