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NY C88402


July 2, 1998

CLA-2-61:RR:NC:TA:359 C88402

CATEGORY: CLASSIFICATION

Mr. Frank J. Desiderio

Grunfeld, Desiderio, Lebowitz & Silverman

245 Park Avenue

33rd Floor

New York, NY 10167

RE: Classification and country of origin determination for two women's sweaters; 19 C.F.R. §102.21(c)(2); tariff shift

Dear Mr. Desiderio:

This is in reply to your letter dated May 26, 1998, submitted on behalf of Champion Knitwear Ltd., requesting a classification and country of origin determination for two women's sweaters which will be imported into the United States.

FACTS:

The subject merchandise consists of two women's knitted sweaters. There are no style numbers assigned. The first garment is a sleeveless, pullover-style sweater vest. It features a V-neckline and a rib knit bottom. The second garment is a long sleeved pullover sweater with a crew neckline, a rib knit bottom and rib knit sleeve cuffs. The sweater vest is constructed with an allover jacquard knit pattern. The pullover sweater is constructed with a jersey knit fabric, except for a jacquard construction on the front panel at the chest where it forms a decorative snowflake pattern. Each style consists of 100% wool fibers and each has a fabric structure with less than nine stitches per two centimeters, measured in the direction in which the stitches are formed.

The manufacturing operations for the sweater vest are as follows: the front and back panels are knit-to-shape in China, except that there are lines of demarcation at the top of each panel to indicate the location where cutting must take place. The trim for the neck and armholes is also knit in China. In Thailand the front and back panels are cut along the lines of demarcation and they are joined to form the finished sweater vest. Thus, they are not considered knit-to-shape.

The manufacturing operations of the pullover sweater are as follows: the front and back panels are knit-to-shape in China, except that there are lines of demarcation at the top of each panel to indicate the place for cutting. In China the sleeves are knit-to-shape and the neckband is knit. In Thailand the front and back panels are cut along the lines of demarcation and they, and the sleeves, are joined to form the finished sweater. Thus, the front panels are not knit-to-shape.

ISSUE:

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

CLASSIFICATION:

The applicable subheading for the sweater vest and the pullover sweater will be 6110.10.2030, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for sweaters, knitted or crocheted: of wool, other, women's. The rate of duty will be 16.6 percent ad valorem.

The sweaters fall within textile category designation 446. 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

6110.10.2030 If the good is not knit-to-shape and consists of two or more component parts, a change to an assembled good of heading 6101 through 6117 from unassembled components, provided that the change is the result of the good being wholly assembled in a single country.

As the sweaters are assembled in a single country, that is, Thailand, as per the terms of the tariff shift requirement, country of origin is conferred in Thailand.

HOLDING:

The country of origin of the sweaters is Thailand. Based upon international textile trade agreements products of Thailand 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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