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June 10, 1999

CLA?2-RR:NC:61 TA:359:D86241

CATEGORY: CLASSIFICATION

Mr. Frank J. Desiderio
Grunfeld, Desiderio, Lebowitz & Silverman LLP 245 Park Avenue, 33rd floor
New York, NY 10167-3397

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

Dear Mr. Desiderio:

This is in reply to your letter dated December 22, 1998, which you submitted on behalf of your client, Tignah Int’l, 501 Seventh Ave., New York, New York 10018, requesting a classification and country of origin determination for two women’s garments which will be imported into the United States.

FACTS:

The subject merchandise consists of two women’s knitted garments. You have submitted two sample garments and, in addition, the component panels for each garment. All of these items are returned as requested.

Style 1700FG is a woman’s knitted cardigan, similar to a sweater, which has a full-front, eight-button opening; a v-shaped neckline and long sleeves. The fabric of the cardigan is entirely constructed from a continuously knit, all over, 2X2 ribbed pattern which has more than nine stitches per two centimeters, measured in the direction in which the stitches were formed. The fiber content is 55% acrylic, 45% cotton.

Style 1710FG is a woman’s knitted, sleeveless pullover with a capped, round neckline and capped armholes. Its fabric has an all over, continuously knit, 2X2 rib knit construction which has more than nine stitches per two centimeters, measured in the direction in which the stitches were formed. The fiber content is 55% acrylic, 45% cotton.

The component panels of the cardigan, similar to a sweater, show these characteristics:

A) Two sleeves with self-start ends and self-finished sides; the sleeves are contoured to shape during the knitting process.

B) A back panel with a self-start bottom and self-finished sides; it also has armholes that are contoured to shape during the knitting process (see the full-fashion marks at the point of join with the sleeves); the shoulders are contoured to shape during the knitting process, as well (shoulder sloping). The neckline is neither contoured to shape during the knitting process, nor does it have a change in the knitted fabric construction which might serve as lines of demarcation. There are two isolated holes, located near the neckline, spaced inches apart, which serve other, unstated, purposes; however, they do not constitute a clear and continuous line of demarcation.

C) A front panel which has a self-start bottom, self-finished sides and armholes which are contoured to shape during the knitting process. On this panel there is a vertical line of demarcation which is caused by a change in the knitted pattern for the space of one wale only. This line extends the full length of the panel from the neckline to its bottom. Its purpose it to divide the panel into two equal halves. At the neckline there is a clear and continuous line of demarcation which is caused by a change in the knitted pattern which indicates where the panel must be cut to create the v-shaped neckline. The change is signified when a 2X2 rib becomes a 2X1 rib at evenly spaced horizontal intervals across the top of the fabric. The change creates a ladder effect which extends vertically down the fabric in eight separate ladders for varying distances to indicate the v-neckline. The ladder effect is enhanced by strategically placed full fashion markings at the sides of the v shape. All of this constitutes a clear and continuous line of demarcation at the neckline.

Conclusion: all four panels on the cardigan, similar to a sweater, are considered knit to shape.

The component panels for the sleeveless pullover show the following characteristics:

A) A back panel which has a self-start bottom, self-finished sides, as well as contoured armholes and shoulders sloped during the knitting process. The neckline is not contoured, nor does it have lines of demarcation which are clear and continuous, and which are formed by a change in the knitted fabric pattern.

B) A front panel which has a self-start bottom, self-finished sides and contoured armholes. The neckline is not contoured to shape. At the neckline there is an attempt to indicate lines of demarcation by means of a change in the knitted patterns which form several ladder effects similar to those discussed on the cardigan garment, the first sample in this ruling. However, in this instance of the pullover sample, the effect does not form a clear and continuous line demarcation because the vertical ladders are discontinued at the point which forms the middle of neckline. Therefore, the neckline does not have lines of demarcation which are acceptable when determining whether the component panel is knit to shape.

Conclusion: both of the panels on the sleeveless pullover qualify as knit-to-shape panels because of the bottoms, sides and armholes.

The manufacturing operations for the cardigan, similar to a sweater are as follows:

In Taiwan:
-the four panels, the placket and the neckline binding are knit;

In China:
-the front panel is cut in half along the vertical line of demarcation; -at the neckline of the front panel the v-shaped is cut along the lines of demarcation; -the left and right front panels are joined to the back panel; -the placket and binding are attached;
-final finishing and processing.

The manufacturing operations for the sleeveless pullover are as follows:

In Taiwan:
-the front and back panels and the capping are knit;

In China:
-it is claimed that the front and rear panels are cut along lines of demarcation; -the panels are linked;
-capping is attached to the neck and armholes; -final finishing and processing.

ISSUE:

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

CLASSIFICATION:

The applicable subheading for the both of the submitted samples will be 6110.30.3055, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for sweaters, pullovers---and similar articles, knitted or crocheted, of man-made fibers: other, other, other, other, other, women’s. The rate of duty will be 33.1% ad valorem.

Both of the submitted samples fall within textile category designation 639. The designated textile and apparel categories and their quota and visa status are the result of international agreements that are subject to frequent renegotiations and changes. To obtain the most current information, we suggest that you check, close to the time of shipment, the U.S. Customs Service Textile Status Report, an internal issuance of the U.S. Customs Service, which is available at the Customs Web Site at WWW.CUSTOMS.USTREAS.GOV. In addition, 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 and should also be verified at the time of shipment.

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

6110.30.3055 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 when comparing the classification change which occurs between the panels and the finished samples, the shift must be initiated from a tariff heading which is outside the designated group (6101-6117). However, the shift in the instant case occurs within the parameters of the designated group. Accordingly, as the two submitted samples do 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.

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

HOLDING:

The country of origin of the two submitted samples 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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