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January 21, 1999

CLA?2-61-RR:NC:61:3-359 D84059

CATEGORY: CLASSIFICATION

Mr. Arthur W. Bodek
Graham and James, LLP
885 Third Avenue, 24th floor
New York, NY 10022-4834

RE: Classification and country of origin determination for four samples of women’s knitwear; 19 CFR 102.21(c)(3)

Dear Mr. Bodek:

This is in reply to your letter dated October 27, 1998, submitted on behalf of your client, Liz Claiborne, Inc., North Bergen, New Jersey, requesting a classification and country of origin determination for four samples of women’s knitwear which will be imported into the United States.

FACTS:

The subject merchandise consists of four samples of women’s knitwear which represent three styles planned for production; two of the samples illustrate the same style number made with a different assembly scenario, according to the attorney. The samples are returned as you requested.

Style number 2269 is a woman’s knitted, short sleeved, pullover sweater which has a crew neck, rib knit bottom and rib knit sleeves. The jersey knit fabric consists of 100% cotton fibers, and it has less than nine stitches per two centimeters, measured in the direction in which the stitches were formed.

Style number LSG-5196 is a woman’s knitted, long sleeved pullover sweater which has a V-neckline, a tubular knit bottom and tubular knit sleeve ends. The knitted, pointelle fabric consists of 100% cotton fibers, and it has less than nine stitches per two centimeters, measured in the direction in which the stitches were formed.

Style number LSG-5029 is a woman’s knitted, long sleeved cardigan sweater which has a V-neckline, tubular knit bottom and tubular knit sleeve ends. The sweater also features a full-front opening with five buttoned closures and a knitted facing on the inside of the placket and neckline. The fabric is a double knit jacquard with floats on the inside and holding stitches on the outside. The fiber content is 100% cotton. The fabric has nine or fewer stitches per two centimeters, measured in the direction in which the stitches were formed.

The manufacturing operations for the sweaters are as follows:

I-For Style 2269

In Country A a) the front, back and sleeve panels, as well as the neck trim, are knitted;
b) all panels show i) a self-start bottom (front and back) or end (sleeves), and ii) self-finished edging at each side;
c) the front and back panels show lines of demarcation at the neck and armholes which are indicated by a clear and continuous change in the knitted stitch pattern;
d) the sleeve panels show lines of demarcation which are indicated by a clear and continuous change in the knitted stitch pattern.

In Country B a) all of the component panels are cut along the predetermined lines of demarcation and then, along with the neck trim, assembled together to form the sweater;
b) as shown by the two assembled sample sweaters for this style number, i) as the first alternative, all knit-to- shape component panels are joined by looping; ii) as the second alternative, all knit-to- shape component panels are joined by looping and then the joined seams are made more secure and more even in appearance by the addition of overlock stitching.

II-For Style LSG-5196

In Country A a) the front, back and sleeve panels, as well as the neck trim, are knitted; (the front and back are knitted as a single panel);
b) the sleeve panels show i) a self-start, tubular knit end, and ii) self-finished edging at each side, and iii)lines of demarcation at each side of each sleeve which is indicated by a clear and continuous change in the knitted stitch pattern; these lines of demarcation extend up the sides of the sleeves from the self-start ends on each side of each sleeve to the lowest part of the armhole; their shape is that of an elongated triangle;
iv) lines of demarcation on each corner at the top where the armhole openings occur; these lines are triangular shaped and are formed by a clear and continuous change in the knitted stitch pattern;
c) the front and back panels are knitted together to form a single, large body panel that measures approximately 32 inches (length) X 44 inches (width); this panel shows i) a tubular knit self-start bottom, ii) self-finished sides, iii)various lines of demarcation indicated by a clear and continuous change in the knitted stitch pattern; the lines of demarcation are found at the top of the body panel at five separate positions: the center, the one-quarter and the three-quarter interval marks, and at the corner on each side in the shape of a triangle; additional lines of demarcation extend down each side from the top in an elongated, triangular shaped section; and iv) a change in the knitted stitch pattern which takes the form of a narrow straight line of stitches that extend down the full length at the center of the panel; this change is only three knit stitches in width and it does not serve as a line of demarcation noting that the attorneys state it is not cut, but is instead meant to simulate a side seam, though none exists, at the side opposite the seam where this panel is sewn together to form a single body panel on the sweater.

In Country B a) the sleeve panels are cut along the lines of demarcation along each of the sides on the elongated triangular shape and also at each corner at the top;
b) the body panel is cut at the top at the five separate positions indicated to form the neckline and the upper part of the armhole openings;
c) the body panel is cut along the sides at the top to form the side portion of the armhole openings;
d) the single body panel is sewn closed;
e) the sleeve panels are sewn to the body panel.

III-For Style LSG-5029

In Country A a) the front, back, sleeve panels and trim are knitted; (the front and back are knitted as a single panel);
b) the sleeve panels show i) a self-start, tubular knit end, ii) self-finished edging at each side and iii)lines of demarcation at each side of each sleeve which is indicated by a clear and continuous change in the knitted stitch pattern; the lines of demarcation start at the end of the sleeve immediately following the tubular knit fabric and they extend up each side of each sleeve to the lowest part of the armhole; their shape is that of an elongated triangle; iv) lines of demarcation on each corner at the top where the armhole openings occur; these lines are triangular shaped and are formed by a clear and continuous change in the knitted stitch pattern;
c) the front and back panels are knitted at the same time, thereby forming a single, large body panel which measures approximately 25 inches (length) X 50 inches (width); this body panel shows i) a tubular knit, self-start bottom, ii) self-finished sides, iii)various lines of demarcation indicated by a clear and continuous change in the knitted stitch pattern; these lines of demarcation are found at the top of the body panel at five separate positions: the center, the one-quarter and the three-quarter interval marks, and at the corner on each side in a triangular shape; and iv) two additional changes in the knitted stitch pattern which take the form of a narrow straight line of stitches that extend down the full length of the panel at the one-quarter and the three-quarter intervals; each of these two changes is only two stitches wide; according to the attorneys they indicate the point where the back of the body panel meets each of the two half-fronts, and they are not lines of demarcation, but are instead meant to simulate the two side seams, though none exist, at the points where normally side seams would exist.

In Country B a) the sleeve panels are cut along the lines of demarcation indicated along each side on the elongated triangular shape and also at each corner at the top;
b) the large body panel is cut at the top along the five portions indicated by the lines of demarcation to form the rear neckline, the armholes, and the two halves of the V-shaped neckline at the front of the cardigan;
c) the sleeves are sewn to the single body panel; and
d) the placket trim and the neckband are attached.

ISSUE:

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

CLASSIFICATION:

The applicable subheading for the sweaters,Styles 2269, LSG-5196 and LSG-5029, 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, sweaters, women’s. The rate of duty will be 18.6% ad valorem.

The sweaters fall 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 possession

Section 102.21(e) states that the sweaters must undergo a tariff shift from a heading outside 6101 through 6117. Accordingly, as the component parts of the sweaters are classified within the proscribed heading item numbers, the sweaters do 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.

As the subject merchandise is knit to shape in one country, Country A, Section 102.21(c)(3) applies.

HOLDING:

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