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July 8, 1999

CLA?2-RR:NC:TA:355 E82014

CATEGORY: CLASSIFICATION

Mr. Michael Santana
Air & Sea Cargo Express Corp.
175-01 Rockaway Blvd., Suite 303A
Jamaica, New York 11434

RE: Classification and country of origin determination for men’s woven shirts; 19 CFR 102.21(c)(2); tariff shift

Dear Mr. Santana:

This is in reply to your letter dated June 1, 1999 on behalf of your client, Cote De France Inc., requesting a classification and country of origin determination for men’s woven shirts which will be imported into the United States.

FACTS:

The subject merchandise will consist of men’s woven shirts of 100% linen or 55% linen and 45% cotton.

You plan to produce men’s woven shirts of either 100%linen or 55% linen and 45% cotton in the Gaza Strip. The fabric and part of the accessories will be sent from mainland China to Gaza: the cutting, sewing and packing will be done in the Gaza Strip and the balance of the accessories will be purchased in Israel.

You ask if the total value of the workmanship done in Gaza, including the value of the accessories purchased in Israel, exceeds 35% of the F.O.B. value of the finished product would the finished product be exempt from duty upon importation into the U.S.A.

If the goods are imported directly from the Gaza Strip and the value of the workmanship, including the accessories purchased in Israel, exceeds 35% of the appraised value of the goods they will be entitled to a free rate of duty. Whether the 35% value requirement is satisfied can only be ascertained when the “appraised value” of the goods is determined at the time of entry into the United States.

ISSUE:

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

CLASSIFICATION:

The applicable subheading for the shirts will be 6205.90.4040, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for men’s woven linen shirts. If the shirts meet the 35% value requirement the duty rate will be free.

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Section 334 of that Act (codified at 19 U.S.C. 3592) provides new rules of origin for textiles and apparel entered, or withdrawn from warehouse, for consumption, on and after July 1, 1996.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

6201-6208 If the good consists of two or more component parts, a change to an assembled good of heading 6201 through 6208 from unassembled components, provided that the change is the result of the good being wholly assembled in a single country, territory or insular possession.

You ask what should be the country of origin on the label. As you indicate the shirts will be wholly assembled in the Gaza Strip the shirts should be marked Gaza Strip.

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

HOLDING:

The country of origin of the shirts is the Gaza Strip.

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 Gerard Shea at 212-637-7082.

Sincerely,

Robert B. Swierupski
Director,

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