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NY D83594





October 29, 1998

CLA-2-61:RR:NC:TA:354 D83594

CATEGORY: CLASSIFICATION

TARIFF NO.: 6116.10.6500

Mr. Frank Lam
Austins Marmon Limited
29th Floor, Nanyang Plaza
57 Hung To Road
Kwun Tong
Kowloon, Hong Kong

RE: Country of origin determination for coated knitted gloves; 19 C.F.R. ?102.21(c)(4) and (c) 5.

Dear Lam:

In your letter dated August 28, 1998 you requested a country of origin determination for coated knitted gloves which will be imported into the United States from SriLanka, Indonesia, Bangladesh, China and Cambodia. A sample was submitted to this office for examination.

FACTS:

The subject merchandise, style Y8111L, is a PVC dip coated knitted fabric glove with a pinked cut open cuff. You have indicated that the knitted fabric will be made of either cotton or a polycotton blend. The PVC coating exceeds 50% by weight of the knitted fabric material. The production procedures were given as follows:

1) Cutting the materials into cut parts of knitted fabric glove liners.
2) Sewing the cut parts into finished glove liners. 3) Turning the sewn finished glove liners. 4) Dipping the finished glove liners with PVC. 5) Packing the finished gloves.
You have requested a country of origin determination under the following scenarios:

Scenario I

Procedure 1) takes place in Country A and then the glove cut parts are shipped from Country A to Country B, and thereafter procedures 2) to 5) take place in Country B. You are questioning whether the finished PVC dipped gloves under such circumstances can be claimed as wholly obtained or produced or assembled in Country B and whether Country B quota can be used to import the gloves to the United States.

Scenario II

Procedures 1) to 3) take place in Country A and then the glove liners are shipped from Country A to Country B, and thereafter procedures 4) and 5) take place in Country B. You are questioning whether the finished PVC dipped gloves under such circumstances can be claimed as wholly obtained or produced or assembled in Country B and whether Country B quota may be used to import the gloves to the United States.

LAW AND ANALYSIS:

Pursuant to Section 334 of the Uruguay Round Agreements Act (codified at 19 USC Section 3592), new rules of origin were effective for textile products entered, or withdrawn from warehouse, for consumption on or after July 1, 1996. These rules were published in the Federal Register, 60 Fed. Reg. 46188 (September 5, 1995). Section 102.21, Customs Regulations (19 CFR Section 102.21), sets forth the general rules to determine country of origin. Thus, the country of origin of a textile product is determined by a hierarchy of rules set forth in paragraphs (c)(1) through (c)(5) of Section 102.21.

Section 102.21(c)(1) sets forth the general rule for determining the country of origin of a textile or apparel product in which the good was wholly obtained or produced. As the subject glove has not been wholly obtained or produced in a single country, this section is inapplicable. Section 102.21(c)(2) provides for instances where the country of origin of a textile or apparel product cannot be determined under Section 102.21(c)(1). Section 102.21(c)(2) provides, in pertinent part:

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 foreign material 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.

Section 102.21(e) provides, in pertinent part:

Specific rules by tariff classification. 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:

6101-6117 (1) If the good is not knit to shape and consists of two or more component parts, a change to heading 6101 through 6117 from unassembled components, provided that the change is the result of the good being wholly assembled in a single country, territory, or insular possession.

The applicable subheading for the subject merchandise will be 6116.10.6500, Harmonized Tariff Schedule of the United States (HTS), which provides for Gloves, mittens and mitts, knitted or crocheted: impregnated, coated or covered with plastics or rubber: other: without fourchettes: other. The rate of duty will be 11.2 percent ad valorem. As the subject merchandise is not knit to shape, consists of two or more component parts and is not wholly assembled in a single country, Section 102.21(c)(2) is not applicable to this merchandise.

Section 102.21(c)(3) provides for goods that have been wholly assembled (with certain enumerated exceptions) in a single country, insular possession, or territory or which are knit to shape. Section 102.21(c)(3) is therefore inapplicable to the subject merchandise as it has not been wholly assembled in a single country, insular possession, or territory, nor is it a knit to shape good. Section 102.21(c)(4) provides the first multi-country rule. Section 102.21(c)(4), states the following:

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 Scenario I, the most important assembly operation occurs in Country B as it is in this country where the majority of the assembly processes and manufacturing take place. Thus, in accordance with Section 102.21(c)(4), the country of origin of the subject glove is Country B.

In Scenario II, important assembly and manufacturing operations occur in both Country A and Country B. Neither the knit glove formation nor the PVC coating process is considered more important than the other, paragraph (c)(4) is not applicable to this merchandise.

Paragraph (c)(5) states that, "Where the country of origin of a textile or apparel product cannot be determined under paragraph (c) (1), (2), (3) or (4) of this section, the country of origin of the good is the last country, territory or insular possession in which an important assembly or manufacturing process occurred". Accordingly, in the case of Scenario II, the country of origin is conferred in the last country in which an important assembly or manufacturing process occurred, that is, Country B.

Additionally, you inquired whether cost would impact country of origin determination. Please note that the relative significance of an operation, not its cost, is a determining factor in country of origin decisions.

HOLDING:

In both Scenario I and Scenario II the country of origin of the subject gloves is Country B. The applicable subheading for the gloves will be 6116.10.6500, HTS. Merchandise classified under this subheading is not subject to quota or visa restrictions.

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

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 C.F.R. on the assumption that all of the information furnished in the ruling letter, either directly, by reference, or by implication, is accurate and complete in every material respect.

Should it be subsequently determined that the information furnished is not complete and does not comply with 19 C.F.R. 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 C.F.R. ?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 Brian Burtnik at 212-466-5880.

Sincerely,

Robert B. Swierupski
Director,

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