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February 23, 1999

CLA?2-61:RR:NC:TA:359 D85065

CATEGORY: CLASSIFICATION

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

RE: Classification and country of origin determination for a woman’s knitted cardigan sweater which is constructed in two countries; 19 CFR 102.21(c)(3)

Dear Mr. Stack:

This is in reply to your letter dated December 7, 1998, and to your subsequent submission dated January 12, 1999, on behalf of your client, May Department Stores Int’l, St. Louis, Missouri, requesting a classification and country of origin determination for a woman’s knitted cardigan sweater which will be imported into the United States.

FACTS:

The subject merchandise consists of a sample, Style Model No. 1 (manufacturer’s style number EK 3608), of a woman’s knitted cardigan sweater, and all of the component knitted panels of which the sweater is constructed. The fabric of this sweater consists of 100% acrylic fibers, and it has less than nine stitches per two centimeters, measured in the direction in which the stitches were formed. Featured on the sweater are a round, capped neckline; long sleeves with tubular ends; a six-button, full front opening: a tubular knit bottom; two front pockets below the waist and inside shoulder pads.

The knitted component panels submitted consist of one front, one back and two sleeve panels. In addition, there are separate panels illustrating the pockets and the fabric trim.

The back panel is rectangular in shape and it possesses a self-start, tubular bottom and self-finished sides. At each corner at the top of this panel there is a change in the knitted stitch pattern which indicates a clear and continuous line of demarcation along which the fabric will be cut to facilitate the joining of the sleeves to the body of the sweater at the shoulders.

The front panel is rectangular in shape and it has a self-start, tubular bottom and self-finished sides. At the neckline and at each corner at the top of this panel there exists a change in the knitted stitch pattern which indicates a clear and continuous line of demarcation along which the fabric will be cut to allow the joining of the sleeves at the shoulders and the formation of the neckline. Extending down the center of this front panel is a vertical line of missed stitches which indicates where the panel will be cut in half to form the two sides of the cardigan sweater.

The two sleeve panels are rectangular in shape and they have a self-start, tubular bottom and self-finished sides. At each corner of the top and bottom of these panels there exists a change in the knitted stitch pattern whic indicates a clear and continuous line of demarcation along which the fabric will be cut to allow the joining of the sleeves to the body panels at the shoulders, and to arrange the gradual narrowing of the fabric of the sleeves as they approach the wearer’s wrist. Each change in the knitted stitch pattern assumes the shape of a triangle: at the top the two triangles measure 5 X 4 X 3 inches; while at the bottom the two triangles are greatly elongated.

The manufacturing operations for the cardigan sweater are as follows: The knitted panels are formed in Taiwan in the condition in which they were submitted for review in this ruling. The panels are shipped to China (that is, the front, back and two sleeve panels). In China the front panel is cut in half to form the two halves of the front of the cardigan sweater, and all of the panels are cut along the lines of demarcation. All five panels are assembled together to form the finished garment and the pockets and the trimming are added.

ISSUE:

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

CLASSIFICATION:

The applicable subheading for the cardigan sweater 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, sweaters, women’s. The rate of duty will be 33.1% ad valorem.

The cardigan 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 good must undergo a tariff shift from a heading outside the designated heading grouping; however, the cardigan sweater is classified in heading 6110, while the panels are classified in heading 6117. Accordingly, as the cardigan sweater does not qualify for the tariff shift, 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.

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

HOLDING:

The country of origin of the cardigan 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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