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September 15, 1999

CLA?2-61:RR:NC:TA:359 E82777

CATEGORY: CLASSIFICATION

Mr. Alan G. Lebowitz
Grunfeld, Desiderio, Lebowitz & Silverman 245 Park Avenue, 33rd Fl.
New York, NY 10167-3397

RE: Classification and country of origin determination for two women=s knitted garments, a cardigan and a pullover; 19 CFR 102.21(c)(3)

Dear Mr. Lebowitz:

This ruling constitutes a replacement letter for New York ruling letter D86005, dated March 5, 1999. In that ruling the description of the component panels for the pullover garment, Sample B, was incomplete insofar as it failed to note that the front and back panels show full-fashion marks at the armholes, indicating that they are contoured to shape during the knitting process. In the present ruling letter the description of the front and back panels is amended to reflect the fact of the contouring of the armholes during the knitting process. This ruling also includes a statement that all four major panels are considered knit-to-shape component panels.

This is in reply to your letter dated December 10, 1998, submitted on behalf of Century Rich (Cambodia) Co., Ltd., requesting a classification and country of origin determination for two knitted garments which will be imported into the United States.

FACTS:

The subject merchandise consists of two samples of knitted apparel, along with their constituent panels, all of which are returned as requested.

The first sample, designated as Sample A, is a woman=s knitted, long sleeved cardigan, similar to a sweater. It possesses a round neckline and a full-front, seven-button opening. Its fiber content is 100% acrylic. The outer surface of its knitted fabric has more than nine stitches per two centimeters, measured in the direction in which the stitches were formed; and it has less than ten stitches per linear centimeter in each direction (horizontal and vertical).

The second sample, Sample B, is a woman=s knitted, long sleeved pullover with a round, capped neckline, a tubular knit bottom and tubular knit sleeve ends. The outer surface of the knitted fabric has more than nine stitches per two centimeters, measured in the direction in which the stitches were formed. The fiber content is 100% acrylic.

The constituent panels for the knitted samples have these characteristics:

I-For the cardigan, similar to a sweater,

(a) the back panel has a self-start, tubular bottom, the sides are self-finished along their entire length and the armholes are contoured to shape by the knitting process.

(b) the back panel shows no lines of demarcation at the neckline or at the top of the shoulders; even though you point out that there are two or three marker holes at the top center of this panel which are intended to indicate where to cut the panel to allow for a rear neckline, we do not regard these as clear and continuous lines of demarcation; finally, there are paper tags on this panel which indicate the area intended for cutting in order to achieve shoulder sloping;

(c) the two sleeve panels show self-start, tubular ends and self-finished sides; at the area of each shoulder where the sleeve panel joins the body of the garment the panel is contoured to shape by the knitting process; there are no lines of demarcation on the sleeves;

(d) the front panel has a self-start, tubular bottom and self-finished sides; the top of the panel at the sides is contoured to shape by the knitting process;

(e) at the neckline of the front panel there is a partial change in the knitted stitch pattern which results in a partial line of demarcation; however, this is not a clear and continuous change in the knitted stitch pattern and consequently it does not constitute a line of demarcation for purposes of determining the country of origin of this garment;

(f) on the front panel, extending vertically down its center for its entire length and measuring one wale in width, is a single row of missed stitches, the purpose of which is to indicate a line of demarcation along which the two sides for the front panel will be cut and separated;

(g) you also submitted an alternative for the single front panel previously described; the alternative consists of two panels: one for the left side, one for the right, which are already separated, but otherwise have the characteristics noted in the large, single panel.

II-For the pullover,

(a) the back panel has a self-start, tubular bottom and self-finished sides; there are no lines of demarcation at the neckline or the shoulders; this panel does show full- fashion marks at the armholes which are contoured to shape during the knitting process;

(b) the two sleeve panels have self-start bottoms and self-finished sides; the armholes are contoured to shape by the knitting process;

(c) the front panel has a self-start bottom and self- finished sides; the neckline shows a partial change in the knitted stitch pattern which results in a partial line of demarcation; however, this is not a clear and continuous change in the knitted stitch pattern and, therefore, does not constitute a line of demarcation for purposes of determining the country of origin of this garment; this panel does show full-fashion marks at the armholes which are contoured to shape during the knitting process.

The manufacturing operations for the cardigan, similar to a sweater, Sample A, are as follows: the component panels are knit in Cambodia from yarn which may be a product of China, Hong Kong, Singapore, Indonesia or Malaysia. The knit panels are sent from Cambodia to China. When in China the single panel is cut at the neckline and cut in half down the center to form the two front panels for the cardigan, similar to a sweater. (For the alternate process involving the two panels, only the cutting out of the neckline needs to be performed). The back panel is cut at the neckline. Prior to assembly, the shoulders are sloped if this is requested by the manufacturer=s customer. The garment is dyed and finished, and the trimming is attached. All of the panels are assembled by looping. The merchandise is shipped from China to the United States.

The manufacturing operations for the pullover, Sample B, are as follows: the component panels are knit in Cambodia from yarn produced elsewhere. These knit panels are sent from Cambodia to China. When in China the front and back panels are cut along the necklines, and shoulder sloping is performed, if requested. All dyeing and finishing, and the adding of the trim, are performed, and the panels are assembled by looping. The merchandise is shipped from China to the United States.

On both garments all of the panels are considered knit to shape for the purposes of determining their country of origin.

ISSUE:

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

CLASSIFICATION:

The applicable subheading for the cardigan, similar to a sweater, and for the pullover 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 or girls=. The rate of duty will be 33.1% ad valorem.

Both the garments fall within textile category designation 639. 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":

Copy the tariff shift rule for the applicable subheading: 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 singe country, territory or insular possession.

Section 102.21(e) states that the good must undergo a change to heading 6101 through 6117 from a heading outside that grouping; however, since the panels fall within heading 6117 while the garments are classified in heading 6110, this requirement is not satisfied. Accordingly, as the cardigan, similar to a sweater, and the pullover 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, that is, Cambodia, Section 102.21(c)(3) applies.

HOLDING:

The country of origin of the cardigan, similar to a sweater, and of the pullover, is Cambodia. Based upon international textile trade agreements products of Cambodia are not subject to quota or visa requirements.

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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