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NY F86696




May 9, 2000

CLA261:RR:NC:TA:361 F86696

CATEGORY: COUNTRY OF ORIGIN

Mr. Karl f. Krueger
AEI Customs Brokerage Services
P.O. box 5129
Southfield, Michigan 48086-5129

RE: Country of Origin determination for a woman's knit wrap garment (pareo); 19 CFR 102.21(c)(4); most important assembly or manufacturing process.

Dear Mr. Krueger:

This is in reply to your letter of April 28, 2000, submitted on behalf of 1287454 Ontario Ltd., concerning the country of origin determination for a woman’s knit wrap garment (pareo). The garments will be returned as you requested.

FACTS:

Style 40-77-01 is a woman’s pareo constructed from 100% polyester knit fabric. The pareo is almost rectangular in shape, but has slight (four inch) extensions at the top, and is slightly curved at the bottom.

You have noted that the garment will be manufactured in more than one country, and you have described the manufacturing operations for the garment as follows:

Taiwan
Fabric is knit

Canada

Cut the fabric into the single component used in the garment; Finish edges;
Attach label, serge, fold and package garment;

ISSUE:

What is the country of origin of the submitted garment?

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Section 334 of that Act (codified at 19 U.S.C. 3592) provides new rules of origin for textiles and apparel entered, or withdrawn from warehouse, for consumption, on and after July 1, 1996.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 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”:

6101–6117
(1) 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.

(2) If the good is not knit to shape and does not consist of two or more component parts, a change to heading 6101 through 6117 from any heading outside that group, except from heading 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408, 5512 through 5516, 5806, 5809 through 5811, 5903, 5906 through 5907, and 6001 through 6002, and subheading 6307.90, and provided that the change is the result of a fabric-making process.

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 article at issue is classifiable in subheading 6114.30.3070, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), (see ruling NY F82649). It consists of one component part and is not knit to shape. Therefore, the first and third tariff shift rules for heading 6114, HTSUSA, are inapplicable. The second tariff shift is also inapplicable since the change to heading 6114, HTSUSA, results from a change from either heading 6001, HTSUSA, or heading 6002, HTSUSA, and these headings are specifically excluded from the tariff shift provision. Thus, 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:” 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 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.

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.

The subject pareo is not knit to shape and therefore provision (i) of Section 102.21(c)(3) is not applicable. Provision (ii) of Section 102.21(c)(3) is also not applicable because the subject pareo does not meet the definition of “wholly assembled”, which requires that the good consist of at least two components.

Paragraph (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.”

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 case of the subject pareo, the most important manufacturing process occurs at the time of the fabric making. Consequently, the country of origin of the subject pareo is Taiwan, the country in which the fabric is formed.

HOLDING:

The country of origin of the pareo is Taiwan. Based upon international textile trade agreements, Taiwan is subject to quota restraints 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 C.F.R. 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 C.F.R. 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 C.F.R. 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 Angela De Gaetano at 2126377029.

Sincerely,

Robert B. Swierupski
Director,

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