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NY C86936


June 25, 1998

CLA-2-61:RR:NC:TA:359 C86936

CATEGORY: CLASSIFICATION

Mr. William F. Sullivan

Brokerage Compliance Manager

MSAS Customs Logistics, Inc.

248-06 Rockaway Blvd.

Jamaica, NY 11422

RE: Classification and country of origin determination for three women's knitted sweaters; 19 C.F.R. §102.21(c)(3)

Dear Mr. Sullivan:

This is in reply to your letter dated April 7, 1998, submitted on behalf of Newport News, Inc., New York City, requesting a classification and country of origin determination for three women's knitted sweaters which will be imported into the United States.

FACTS:

As was discussed in the conversation between you and the appropriate National Import Specialist, the samples are retained by Customs for instructional purposes. The subject merchandise consists of three women's knitted sweaters. Style F0969 is a pullover sweater with long, raglan sleeves. The round neckline, sleeve cuffs and bottom waistband are composed of 2x2 rib knit fabric. The body of the sweater is composed of 1 x 1 rib knit fabric.

Style F1304 is a woman's long sleeved cardigan sweater that is constructed from a 5x4x5x4x13 rib knit pattern. The sweater is finished at the sleeve cuffs and the bottom with a 2x2 rib knit pattern. The sweater also features a capped V-neckline that extends to a full-front opening with two button closures.

Style F1136 is a woman's jersey knit, pullover sweater with long sleeves and round neckline. The sleeve cuffs and the bottom are finished with links-links purl fabric.

The fiber content for all three of the sweaters is 55% ramie, 45% cotton. All three have less than nine stitches per two centimeters, measured in the direction in which the stitches were formed.

The manufacturing operations for the three sweaters are as follows: The fabric panels are knit-to-shape in China. These panels are sent to Hong Kong where they are looped together to form the finished sweater. Washing, ironing and packaging also occur in Hong Kong.

ISSUE:

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

CLASSIFICATION:

The applicable subheading for the three sweaters, Styles F0969, F1304 and F1136 will be 6110.90.9040, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for sweaters, knitted or crocheted, of other textile materials, other, other, other: assembled in Hong Kong from knit-to-shape component parts knitted elsewhere. The rate of duty will be 6 percent ad valorem.

The sweaters fall within textile category designation 845. 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

6110.90.9040 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 knit-to-shape panels must be classified outside of headings 6101 through 6117. Accordingly, as the knit-to shape panels are classified within those headings, they do not meet the specified criteria. The sweaters do not qualify following the tariff shift rule, 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 entirely knit-to-shape in China, Section 102.21(c)(3) applies.

HOLDING:

The country of origin of the three sweaters is China. Based upon international textile trade agreements, these three sweaters are subject to quota and the requirement of a visa from Hong Kong.

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. §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 C.F.R. §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 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 Mike Crowley at 212-466-5852.

Sincerely,


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