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June 15, 1999

CLA?2-RR:NC:TA:N3:358 E83308

CATEGORY: CLASSIFICATION

TARIFF NO.:6110.20.2025

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

RE: Classification and country of origin determination for girl’s cotton sweater; 19 CFR 102.21(c)(4)

Dear Mr. Evan:

This is a clarification of binding ruling file NY E82203, dated May 21, 1999. That ruling held that the country of origin of a girl’s cotton sweater, reference 99-2901-10(20), is Hong Kong. As stated in NY E82203, the front panel will be knit to shape in China, while the back panel, sleeves, and neck trim will be knit to shape in Hong Kong. All of the component pieces will be linked in China.

NY E82203 states as follows:

The subject sweater is a knit to shape garment because all major parts are knit to shape. The sleeves feature finished ends which are ready to be assembled to the front and back panels. The front and back panels feature self start bottoms which function as lines of demarcation.

The last statement, which is highlighted in bold, does not fully, describe the conditions necessary for knit to shape construction.

CLARIFICATION:

Self-start bottoms are prerequisites for knit to shape front and back panels, but are not by themselves lines of demarcation. Besides self start bottoms, knit to shape front and back panels require that either the armholes or the neck holes must be shaped or marked with clear, continuous and unambiguous lines of demarcation. A panel with a self-start bottom and clear, continuous and unambiguous lines of demarcation at the neck is knit to shape.

As the front and back panels of the girl’s sweater, Style 99-2901-10(20), have clear, continuous and unambiguous lines of demarcation at the armholes and at the neck, both panels are considered knit to shape.

CLASSIFICATION:

The applicable subheading for the girl’s cotton sweater, reference 99-2901-10(20), will be 6110.20.2025, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for girls' sweaters, pullovers, sweatshirts, waistcoats (vests) and similar articles, knitted or crocheted, of cotton, other, sweaters, girls'. The rate of duty will be 18.6 per cent ad valorem.

Girls' cotton sweaters fall 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 as follows:

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":

HTSUSA Tariff shift and/or other requirements

6101-6117 (3) 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.

The subject sweater is classifiable in heading 6110. The applicable tariff shift rule requires a tariff shift to heading 6101 through 6117 from any heading outside that group. The knit to shape sweater components are classifiable under heading 6117, HTSUSA, which is not outside heading group 6101 through 6117. Accordingly, the tariff shift rule is not met and Section 102.21 (c)(2) is inapplicable.

Section 102.21(c) 3 applies where the country of origin of an apparel product cannot be determined pursuant to paragraph (c) (1) or (c)(2) and where the merchandise consists of a good that was knit to shape in a single country, or (with an exception for goods of certain specifically enumerated headings), was wholly assembled in a single country, territory or possession.

Section 102.21(b) states the following:

(3) Knit to shape. The term knit to shape applies to any good of which 50 percent or more of the exterior surface area is formed by major parts that have been knitted or crocheted directly to the shape used in the good, with no consideration being given to patch pockets, appliques, or the like. Minor cutting, trimming, or sewing of those major parts will not affect the determination of whether a good is “knit to shape.”

(4) Major parts. The term major parts means integral components of a good but does not include collars, cuffs, waistbands, plackets, pockets, linings, paddings, trim, accessories, or similar parts.

The subject sweater is made of components that have not been knit to shape in a single country, territory, or insular possession. Accordingly, Section 102.21(c)(3) is inapplicable.

Section 102.21 (c)(4), which provides the first multi-country rule, states the following:

Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1), (2) or (3) of this section, the country of origin of the good is the single country, territory or insular possession in which the most important assembly or manufacturing process occurred.@

In the case of the subject merchandise, the front panel will be knit to shape in China, while the back panel, sleeves, and neck trim will be knit to shape on Hong Kong. All of the component pieces will be linked in China. The knitting to shape of the back panel, sleeves, and neck trim constitutes the most important manufacturing process. Pursuant to section 102.21(c)(4), the country of origin of the subject sweater is Hong Kong.

HOLDING:

The country of origin of the girl’s cotton sweater, reference 99-2901-10(20), is Hong Kong. Based upon international textile trade agreements products of Hong Kong are currently subject to quota restraints and 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 Bruce Kirschner at 212-637-7079.

Sincerely,

Robert B. Swierupski
Director,

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