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NY C87844


June 29, 1998

CLA-2-61:RR:NC:TA:359 C87844

CATEGORY: CLASSIFICATION

Ms. Christine Basile

Customs Specialist

Kohl's Department Store, Inc.

N56 W17000 Ridgewood Drive

Menomonee Falls, WI 53051

RE: Classification and country of origin determination for a woman's knitted sweater; 19 C.F.R. §102.21(c)(4)

Dear Ms. Basile:

This is in reply to your letter dated May 1, 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 women's knitted cardigan sweater, Style JR8296, with a full-front, zippered opening and long sleeves. The sweater has a crew neckline formed with rib knit fabric, as well as a rib knit bottom and rib knit sleeve cuffs. Hanging from the metal zipper is a textile fabric pull with fringed ends. The fabric of this sweater is constructed with less than nine stitches per two centimeters, measured in the direction in which the stitches were formed. The fiber content is 82% acrylic, 16% wool, 1% angora and 1% other.

The manufacturing operations for the sweater are as follows: the yarn is produced in Taiwan and the front panels are knit-to-
shape in China, while the back panel and the sleeve panels are knit-to-shape in Taiwan. The sweater panels are linked and looped into the sweater in China. Final finishing operations, such as washing, ironing and packaging for shipment, are also performed in China.

ISSUE:

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

CLASSIFICATION:

The applicable subheading for the sweater, Style JR8296 will be 6110.30.3020, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for sweaters, knitted or crocheted, of man-made fibers, other, other, other, other: sweaters: women's. The rate of duty will be 33.3 percent ad valorem.

The sweater falls within textile category designation 646. 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

6110.30.3020 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 sweater panels must be classified outside of the group consisting of headings 6101 through 6117 and they must be knit-to-shape in a single country. Accordingly, as the sweater panels are classified in heading 6117 and they are knit-to-shape in more than one country, the sweater does not qualify for the tariff shift and, 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.

Since the sweater consists of knit-to-shape panels which were not knit 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 knitting to shape of the back panel and sleeve panels in Taiwan constitutes the most important assembly process. Accordingly, the country of origin of the sweater is Taiwan.

HOLDING:

The country of origin of the sweater, Style JR8296 is Taiwan. Based upon international textile trade agreements products of Taiwan 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 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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