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NY F84145




March 24, 2000

CLA2-RR:NC:3:353 F84145

CATEGORY: CLASSIFICATION

Mr. Jarvis Chen
SuperCap Industrial Co., Ltd.
18F, Sec. 2, 216, Tun Hwa S. Rd.
Taipei, Taiwan

RE: Classification and country of origin determination for a hat; 19 CFR 102.21(c)(4)

Dear Mr. Chen:

This is in reply to your letter dated March 7, 2000, requesting a classification and country of origin determination for a bucket hat, which will be imported into the United States. Your request for a country of origin determination for a visor will be answered in a separate ruling.

FACTS:

The subject merchandise consists of a Bucket Hat, Style No. 571158 composed of woven 100% cotton fabric. The hat features a crown with a flat top panel, vented stretch panels, side band with logo, 2 inch sewn brim, and sweatband.

There are three separate manufacturing operations for the Bucket Hat, which are as follows:

SITUATION 1

Taiwan

Weaving and dying of cotton fabric
Cutting fabric into crown components (flat top panel and vented stretch panels) Sewing stretch panels together
Sewing flat top panel and stretch panels together into crown

China

Cutting fabric into side band, sweatband components and brim Embroidering of vent holes
Embroidering of logo
Sewing of side band
Sewing of brim
Sewing of sweatband
Assembly of crown, side band, brim and sweatband Inspection, trimming and finishing
Packing

SITUATION 2

Taiwan

Weaving and dying of cotton fabric
Cutting fabric into crown components (flat top panel and vented stretch panels) Sewing stretch panels together
Embroidering of vent holes
Sewing flat top panel and stretch panels together into crown

China

Cutting fabric into side band, sweatband components and brim Embroidering of logo
Sewing of side band
Sewing of brim
Sewing of sweatband
Assembly of crown, side band, brim and sweatband Inspection, trimming and finishing
Packing

SITUATION 3

Taiwan

Weaving and dying of cotton fabric
Cutting fabric into crown components (flat top panel and vented stretch panels) Cutting fabric into side band
Sewing stretch panels together
Embroidering of vent holes
Sewing flat top panel and stretch panels together into crown Sewing of side band

China

Cutting fabric into sweatband components and brim Embroidering of logo
Sewing of brim
Sewing of sweatband
Assembly of crown, side band, brim and sweatband Inspection, trimming and finishing
Packing

ISSUE:

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

CLASSIFICATION:

The applicable subheading for the Bucket Hat, Style No. 571158 will be 6505.90.2060, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for “Hats and other headgear, knitted or crocheted, or made up from lace, felt or other textile fabric, in the piece (but not in strips), whether or not lined or trimmed; hair-nets of any material, whether or not lined or trimmed: Other: Of cotton, flax or both: Not knitted: Certified hand-loomed and folklore products; and headgear of cotton...Other.” The rate of duty will be 7.7% ad valorem.

The Bucket Hat, Style No. 571158 falls within textile category designation 359. The designated textile and apparel categories and their quota and visa status are the result of international agreements that are subject to frequent renegotiations and changes. To obtain the most current information, we suggest that you check, close to the time of shipment, the U.S. Customs Service Textile Status Report, an internal issuance of the U.S. Customs Service, which is available at the Customs Web Site at WWW.CUSTOMS.USTREAS.GOV. In addition, 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 and should also be verified at the time of shipment.

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.

Please note that for all situations embroidery and minor attachments and components are not used to determine country of origin. Customs Regulation 102.21 (b)(6) states “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.”

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

6505.90 (1) If the good consists of two or more components, a change to subheading 6505.90 from any other heading, provided that the change is the result of the good being wholly assembled in a single country, territory, or insular possession.

Section 102.21(e) states that goods consisting of two or more components must be assembled in a single country. Accordingly, as the assembly does not take place in a single country, 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; 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 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 the case of the subject merchandise, the sewing of the crown constitutes the most important assembly process. Accordingly, the country of origin of the baseball style cap is Taiwan.

HOLDING:

The country of origin of the Bucket Hat is Taiwan. Based upon international textile trade agreements products of Taiwan are subject to quota and the requirement of a visa.

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 Kenneth Reidlinger at 212-637-7084.

Sincerely,

Robert B. Swierupski
Director,

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