United States International Trade Commision Rulings And Harmonized Tariff Schedule
faqs.org  Rulings By Number  Rulings By Category  Tariff Numbers
faqs.org > Rulings and Tariffs Home > Rulings By Number > 1999 NY Rulings > NY E83381 - NY E83446 > NY E83391

Previous Ruling Next Ruling


July 8, 1999

CLA?2-RR:NC:TA:N3:356 E83391

CATEGORY: CLASSIFICATION

Mr. Michael T. Cone
Grunfeld, Desiderio, Lebowitz & Silverman, LLP 245 Park Avenue
New York, New York 10167-3397

RE: Classification and country of origin determination for a man’s knit garment; 19 CFR 102.21(c)(4); most important assembly or manufacturing operation

Dear Mr. Cone:

This is in reply to your letter dated June 15, 1999, on behalf of South Ocean Knitters (USA) Inc., requesting a classification and country of origin determination for a man’s knit garment which will be imported into the United States. As requested, your samples will be returned.

FACTS:

The submitted sample is a man’s pullover garment constructed from 100 percent cotton, jersey and rib knit fabric. Both the jersey and the rib knit constructions measure over 9 stitches per two centimeters counted in the horizontal direction. The garment has a V-neckline; long sleeves with tubular knit cuffs; and a tubular knit bottom.

You have provided a sample of the garment parts as they are knit and a sample of the finished garment as it will be imported into the United States. The garment parts include the front panel, the back panel, and the sleeves.

The following manufacturing operations will occur:

CHINA:
- the combination jersey and rib knit front panel is knit to shape with a self start tubular knit bottom, self finished sides, a contoured front neckline, full fashion marks at the armholes, and a rib knit neckband extension. The shoulder is straight and does not require further shaping before assembly.

HONG KONG:

- the jersey knit back panel is knit to shape with a self start tubular knit bottom, self finished sides, a contoured rear neckline, and full fashion marks at the armholes and shoulder slope.

- the combination jersey and rib knit sleeve panels are knit to shape with self start tubular knit bottoms, self finished sides, and full fashion marks at the armholes and rear shoulder slope. The front shoulder slope is self finished and does not require shaping before assembly.

CHINA:

- the components are assembled (linked and looped) into a finished garment.

ISSUE:

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

CLASSIFICATION:

The applicable subheading for this garment will be 6110.20.2065, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for sweaters, pullovers, sweatshirts, waistcoats (vests) and similar articles, knitted or crocheted: of cotton: other: other: other: other: men’s or boys’. The rate of duty will be 18.6 percent ad valorem.

The garment falls within textile category designation 338. 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: "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) 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

6101-6117 If the good is not knit to shape and consists of two or more component parts, a change to an assembled good of heading 6101 through 6117 from unassembled components, provided that the change is the result of the good being wholly assembled in a single country, territory, or insular possession.

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 merchandise is classifiable as a men’s knit pullover in heading 6110, HTSUSA. Section 102.21 (e) requires a tariff shift to headings 6101 through 6117 from any heading outside that group. In this case, a tariff shift to heading 6110, HTSUSA, occurs in China, but from components that are classifiable in heading 6117, HTSUSA. As heading 6117, HTSUSA, is excepted by Section 102.21 (c)(2), the tariff shift is not applicable.

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

Section 102.21 (c)(3)(i) provides the following:

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; ...

Section 102.21 (b) states that:

(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.

In the case of the subject garment, the front panel, the back panel, and the sleeves are major parts which have been knit directly to the shape used in the good. However, the components have not been knit to shape in a single country, territory or insular possession. Consequently, Section 102.21 (c) (3) is inapplicable.

Section 102.21 (c)(4) provides the first multi-country rule. Section 102.21 (c)(4) states that:

“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 instant situation, although the front panel is knit to shape in China and the components are assembled in China, we believe that the knitting to shape of the back panel and the sleeve panels constitute the most important manufacturing processes for this knit to shape garment. Therefore, pursuant to Section 102.21 (c)(4), the country of origin of the instant pullover is Hong Kong.

HOLDING:

The country of origin of this garment is Hong Kong. Based upon international textile trade agreements, products of Hong Kong are subject visa requirements and quota restraints.

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 Mary Ryan at 212-637-7081.

Sincerely,

Robert B. Swierupski
Director,

Previous Ruling Next Ruling

See also: