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NY G80761




October 19, 2000

CLA2-RR:NC:61:TA 359 G80761

CATEGORY: CLASSIFICATION

Messrs. Alan G. Lebowitz and Harold I. Loring Grunfeld, Desiderio, Lebowitz and Silverman 245 Park Avenue, 33rd Floor
New York, New York 10167-3397

RE: Classification and country of origin determination for a woman’s knitted pullover sweater; 19 CFR 102.21(c)(4)

Dear Messrs. Lebowitz and Loring:

This is in reply to your letter dated August 21, 2000, submitted on behalf of Peter Law & Co., Suite 2301, Nine Queen’s Road Central, Hong Kong, requesting a classification and country of origin determination for a woman’s knitted pullover sweater which will be imported into the United States. You submitted a sample of the finished sweater, as well as the component panels from which it is made. All samples are returned as requested.

FACTS:

The subject merchandise consists of a woman’s knitted pullover sweater that is made from 100% wool yarn. The sweater features a crew neckline, long sleeves with rib-knit cuffs and a pronounced rib-knit waistband. It extends from the wearer’s neck and shoulders to below her waist. The front of the sweater has a decorative design produced by intarsia knitting. The fabric of the sweater has less than nine stitches per two centimeters, measured in the direction in which the stitches were formed. The Style Number is WLP 51758.

You also submitted the component panels from which the sweater was made.. These consists of the following:

Front Panel
self-start bottom
self-finished sides
armholes and neckline contoured to shape during the knitting process

Back Panel
self-start bottom
self-finished sides
armholes and neckline contoured to shape during the knitting process

Sleeve Panels
self start ends
area of join to the armholes contoured to shape during the knitting process Neck Trim Fabric Strip

For the purpose of determining the country of origin of this merchandise, all of the major body panels, i.e. the front, back and sleeve panels, are considered knit to shape.

The manufacturing operations for the woman’s knitted pullover sweater are as follows:

Country A
front panel is knit

Country B
back panel and sleeve panels are knit
neck trim is knit
all panels are assembled by looping and linking and stitching

ISSUE:

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

CLASSIFICATION:

The applicable subheading for the woman’s knitted pullover sweater will be 6110.10.2030, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for sweaters, pullovers, sweatshirts, waist coats (vests) and similar articles, knitted or crocheted: of wool or fine animal hair: other, sweaters: women’s. The rate of duty will be 16.4% ad valorem.

The woman’s knitted pullover sweater falls within textile category designation 446. 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 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

6110.10.2030 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(e) states that the good must undergo a tariff classification change to heading 6110 through 6117 from any heading outside the designated grouping. However, the change from knitted component panels (heading 6117) to a knitted sweater (heading 6110) takes place inside the designated grouping. Accordingly, as the required tariff shift does not occur, Section 102.21(c)(2) is inapplicable.

Section 102.212(e) also states that the good, if it is knit to shape, must be knit to shape in a single country. However, the woman’s knitted pullover sweater is knit to shape in two countries, Country A and Country B. Accordingly, as the required production location is not met, 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.

As the subject merchandise is not knit to shape in a single country, Section 102.21 (c)(3) is not applicable.

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 knitting to shape of the back panel and the two sleeve panels, plus the assembly of all of the component panels, all of which occur in country B, constitute the most important assembly processes. Accordingly, the country of origin of the woman’s knitted pullover sweater, Style WLP51758, is Country B.

HOLDING:

The country of origin of the woman’s knitted pullover sweater is Country B. Based upon international textile trade agreements products of Country B maybe 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 section 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 Mike Crowley at 212-637-7077.

Sincerely,

Robert B. Swierupski
Director,

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