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HQ 962870




January 14, 2000

Ms. Wendy Wieland Martin
Director Trade Services
KELLWOOD
600 Kellwood Parkway
Chesterfield, MO 63017

RE: Country of Origin of a Woven Men’s Shirt; 19 CFR §102.21(c)(4)

Dear Ms. Martin:

This is in reply to your letters of March 29 and April 22, 1999, requesting a ruling on the country of origin of a woven cotton men’s shirt. You state that “Our Smart Shirt division”, a Hong Kong based subsidiary, will import the shirt, but the manufacturing operations will occur in Sri Lanka and the Maldives.

The samples you sent us will be returned to you, as requested, under separate cover.

FACTS:

The garment at issue is a long-sleeved men’s shirt made of 100 percent woven cotton fabric. It has a center placket with seven buttons, and a button-down collar with a collar band. It also features a sweat patch on the back yoke and an embroidered pocket on the left breast. The manufacturing operations to make the shirt occur in the two countries, as follows:

SCENARIO A - Operations Performed in Sri Lanka

The fabric is cut into component pieces;

Embroidery is put on the pocket;
The pocket is sewn onto the left front panel; The center placket is attached to the left front panel; Button holes are sewn on the left front panel; The right front panel is hemmed;
Buttons are sewn onto the right front panel; The back yoke and sweat patch are sewn and joined with the back panel; The collar is sewn and joined with the collar band and completed with a button and button hole; The labels are sewn;
The sleeves are formed by sewing on the sleeve placket and button; The cuffs are formed and completed with the button and button hole;

The front and back panels are sewn together at the shoulders;

SCENARIO A - Operations Performed in Maldives

The sleeves are attached to the front and back panels; The front and back panels are sewn together at the side seams; The cuffs are attached to the sleeves;
The collar and collar band are attached to the front and back panels; The collar is closed at the neck seam.

SCENARIO A – Second Set of Operations Performed in Sri Lanka The bottom is hemmed;
If necessary, the shirt is washed;
The shirt is trimmed, checked, pressed, folded, bagged and packaged.

The Steps for SCENARIO B are identical to those above except that the front and back panel are sewn together (step 13 in SCENARIO A) at the shoulders in the Maldives rather than in Sri Lanka.

ISSUE:

What is the country of origin of the woven men’s shirt?

LAW AND ANALYSIS:

On December 8, 1994, the President signed into law the Uruguay Round Agreements Act. Section 334 of that Act 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 material 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”:

6201-6208 . . . (1) 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.

The subject merchandise is classifiable as a men’s woven shirt in heading 6205, HTSUSA. Section 102.21(b)(6) defines wholly assembled as:

The term “wholly assembled” when used with reference to a good means that all components, of which there must be at least two, preexisted in essentially the same condition as found in the finished good and were combined to form the finished good in a single country, territory, or insular possession. Minor attachments and minor embellishments (for example, appliques, beads, spangles, embroidery, buttons) not appreciably affecting the identity of the good, and minor subassemblies (for example, collars, cuffs, plackets, pockets), will not affect the status of a good as “wholly assembled” in a single country, territory, or insular possession.

In this case, components are assembled in both Sri Lanka and the Maldives. Accordingly, the good is not wholly assembled in a single country, and Section 102.21 (c)(2) is inapplicable.

Paragraph (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; or

(ii) Except for goods of heading 5609, 5807, 5811, 6213, 6214, 6301 through 6306, and 6308, and subheadings 6209.20.5040, 6307.10, 6307.90, and 9404.90, if the good was not knit to shape and the good was wholly assembled in a single country, territory, or insular possession, the country of origin of the good is the country, territory, or insular possession in which the good was wholly assembled.

As the subject merchandise is neither knit, nor wholly assembled in a single country, Section 102.21 (c)(3) is also inapplicable.

Section 102.21 (c)(4) states, “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 SCENARIO A, the most important assembly takes place in Sri Lanka where all of the components are cut, the collar, cuffs and sleeve components are assembled, and the front and back panels are sewn together at the shoulders. See HQ 958680, dated May 28, 1996 (Scenario 5); and New York Ruling Letter (NY) E89446, dated December 1, 1999 (Scenarios B and C).

It is the opinion of this office that under SCENARIO B the most important assembly occurs in the Maldives where the components of the garment are sewn together (i.e., front and back panels are sewn together at the shoulders, sleeves are attached to the front and back panels, front and back panels are sewn together at the side seams, cuffs are attached to the sleeves, and the collar and collar band are attached to the front and back panels). See Headquarters Ruling Letter (HQ) 959925, dated November 7, 1996; HQ 958971, dated June 14, 1996; and HQ 961048, dated March 3, 1998.

HOLDING:

The country of origin of the woven cotton shirt under SCENARIO A is Sri Lanka. The country of origin of the shirt under SCENARIO B is the Maldives.

This ruling is issued pursuant to the provisions of Part 177, Customs Regulations (19 C.F.R. Part 177). If the specific factual situation is not as described above, this ruling may not be valid. In such an event, it is recommended that a new ruling request be submitted.

Sincerely,

John Durant, Director

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