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January 29, 1999

CLA?2-61:RR:NC:TA:359 D84983

CATEGORY: CLASSIFICATION

Mr. Robert T. Stack
Tompkins and Davidson, LLP
One Astor Plaza
1515 Broadway
New York, NY 10036-8901

RE: Classification and country of origin determination for a woman’s knitted sweater; 19 CFR 102.21(c)(3)

Dear Mr. Stack:

This is in reply to your letter dated November 24, 1998, and your subsequent letter dated January 12, 1999, on behalf of May Department Stores Intl., St. Louis, Missouri, 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 one sample of a woman’s knitted sweater, as well as the knitted panels which were necessary to create the garment. These items are returned as requested. You also submitted a sketch of the garment and its panels, which show the areas on the panels that are to be removed by cutting along the lines of demarcation.

The importer is using Style Model No. 3, while the manufacturer employs Style HS702. The sample is a woman’s knitted sweater with long sleeves, a V-shaped neckline and a rib knit waistband and rib knit sleeve ends. The fabric, which has cable knitting and, at the front, decorative diamond patterns, has less than nine stitches per two centimeters measured in the direction in which the stitches were formed. The fiber content is 100% cotton.

The front panel shows a self-start bottom, finished sides and armhole openings, and a finished V-shaped neckline. At each shoulder there is a clear and continuous line of demarcation which is indicated by a change in the knitted stitch pattern and which notifies the cutter where to remove a small portion of the shoulder fabric (shoulder sloping).

The back panel also has a self-start bottom and finished sides (one side is covered by overlock stitching, as well). There are clear and continuous lines of demarcation at the armholes, neck and shoulders (shoulder sloping), which are indicated by a change in the knitted stitch pattern, and which notifies the cutter where the panel must be cut to form the final panel as it exists on the finished sweater.

There is a single piece of fabric that was submitted that contains the two sleeve panels knitted at the same time as a single panel. There are included on this panel a self-start bottom, self-finish sides (that is, at each side of the single panel), and clear and continuous lines of demarcation which are indicated by a change in the knitted stitch pattern and which are found at each side of the single panel and at its center part. The cutting along these lines allows for the shaping of the sleeves as well as the division of the single panel into two parts. Additionally, there are changes in the knitted stitch pattern which indicate clear and continuous lines of demarcation at the top of the single panel at the corners and at its center to allow for the cutting of the armhole opening.

The manufacturing operations for the sweater are as follows:

A) the panels (front, back and the single panel for the sleeves) are knitted in Taiwan and exported to China;

B) the panels are cut along the lines of demarcation in China and are assembled into the finished sweater.

ISSUE:

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

CLASSIFICATION:

The applicable subheading for the sweater will be 6110.20.2020, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for sweaters and similar articles, knitted or crocheted, of cotton, other, other, sweaters, women’s. The rate of duty will be 18.6% ad valorem.

The sweater falls 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 insular possession

Section 102.21(e) states that a classification change must occur outside of the grouping of headings 6101 through 6117; however, the change in this instance occurs within the boundaries indicated, that is, from 6117 (parts) to 6110 (the sweater). Accordingly, as the sweater does not meet the tariff shift requirement, 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

As the subject merchandise is knit to shape in a single country (Taiwan), Section 102.21(c)(3) applies.

HOLDING:

The country of origin of the sweater 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 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 212-637-7077.

Sincerely,

Robert B. Swierupski
Director,

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