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NY F89764




October 26, 2000

CLA2-RR:NC:TA:N3:356 F89764

CATEGORY: CLASSIFICATION

Mr. Bolla
Florence Montecarlo
38, Boulevard des Moulins
Montecarlo 98000
Monaco

RE: Classification and country of origin determination for a men’s knit garment; 19 CFR 102.21(c)(2); tariff shift

Dear Mr. Bolla:

This is in reply to a letter dated July 10, 2000, from EMF Marketing Services, New York, New York, requesting a classification and country of origin determination on your behalf. The ruling concerns a man’s knit garment that will be produced in Italy and Bulgaria and sold by your firm for importation into the United States.

FACTS:

The submitted sample is a men’s pullover garment constructed from 70 percent acrylic, 30 percent wool, jacquard knit fabric that measures 10 stitches per two centimeters counted in the horizontal direction. The garment has a rib knit crew neckline; long sleeves with rib knit cuffs; and a rib knit bottom.

You have provided a sample of the garment panels as they are knit and sent to Bulgaria for assembly, and a sample of the finished garment as it will be imported into the United States. The garment parts include the front and back panels, the left and right sleeves, and the collar band.

The manufacturing operations for the garment are as follows:

Italy:

The rectangular front panel is knit with a rib knit self-start bottom, straight self-finished sides, and a straight top with an outline of the shoulder and neckline that is created by a change in the color of the knit yarns

The rectangular back panel is knit with a rib knit self-start bottom, straight self-finished sides, and a straight top with an outline of the shoulder and neckline that is created by a change in the color of the knit yarns

The rectangular sleeve panels are knit with a rib knit self-start bottom, a straight top, and straight sides with the tapered shape of the sleeve created by a change in the color of the knit yarns.

The ribbed neckband is knit

Bulgaria:

The front and back panels are shaped by cutting at the shoulders and neckline following the change in pattern color. The armhole is straight and does not require shaping before assembly.

The sleeve panels are shaped at each side by cutting according to the change in pattern color.

The cut parts are assembled into a finished garment.

ISSUE:

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

CLASSIFICATION:

The applicable subheading for the garment will be 6110.30.1550, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for pullovers and similar articles, knitted or crocheted: of man-made fibers: other: containing 23% or more by weight of wool or fine animal hair: men’s or boys’. The rate of duty will be 17 percent ad valorem.

The garment falls within textile category designation 438. 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.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.

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 part states that "The following rules shall apply for purposes of determin-ing the country of origin of a textile or apparel product under paragraph (c)(2) of this section":

HTSUS Tariff shift and/or other requirements

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.

Section 102.21 (b) (3) states:

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 it shape.”

The submitted panels are not considered “knit to shape” since they are not knit directly to the shape used in the good. The demarcation at the necklines, shoulders and sleeves are not considered acceptable lines of demarcation since they are created by a change in the color of the knit pattern rather than a change in the knit construction.

Section 102.21 (b) (6) states:

Wholly assembled. 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.

Accordingly, as the garment is not knit to shape and consists of two or more parts, and as all of the assembly operations occur in Bulgaria, the garment is considered “wholly assembled” in a single country, that is, Bulgaria. As per the terms of the tariff shift requirement, country of origin is conferred in Bulgaria.

HOLDING:

The country of origin of the sample garment is Bulgaria. Based upon international textile trade agreements, products of Bulgaria are not currently subject to visa requirements or 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,

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