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NY G81692




October 26, 2000

CLA2-RR:NC:TA:357 G81692

CATEGORY: CLASSIFICATION

Mr. Thomas G. Travis
Sandler, Travis & Rosenberg, P.A.
5200 Blue Lagoon Drive
Miami, FL33126-2022

RE: Classification and country of origin determination for a women’s poncho; 19 CFR 102.21(c)(4)

Dear Mr. Travis:

This is in reply to your letter dated September 14, 2000, on behalf of the Textile Council of Hong Kong, requesting a classification and country of origin determination for a women’s poncho which will be imported into the United States. Samples were submitted and are being returned as you requested.

FACTS:

The subject merchandise, style #13, consists of a woven poncho made from a 70% cotton/30% nylon fabric. The garment has two front panels, one back panel, and two side panels joining the front and back panels. Other features include an integral self-fabric hood with an elasticized drawstring, a partial front zipper closure and a patch pocket in the center front of the garment.

The manufacturing operations for the poncho are as follows:

Raw materials sourced as follows:

Taiwan:

70% cotton/30% nylon woven fabric

Hong Kong:

Zipper
Drawcord
Stoppers
Eyelets
Woven Tape
Thread
Labels

Manufacturing Steps

Fabric is cut into component parts
Joining of center front seam
Setting of zipper to center front
Joining of side panels to front panel
Joining of front and back panels at one raglan seam Sewing of pocket and setting to body
Sewing of back neck facing to back panel
Sewing of back hanger loop
Sewing of hood panel seams
Setting of eyelet, drawcord and stopper to hood

Country “B” (Hong Kong, Taiwan or the Philippines)

Joining front and back panels at one raglan seam Setting of hood to body
Setting of woven tape to neck seam
Setting of facing along panel edges
Sewing of labels
Thread trimming
Ironing
Attaching hangtags
Packing
Packaging

Fabric is cut into component parts
Joining of center front seam
Setting of zipper to center front
Joining of side panels to front panel
Sewing of pocket and setting to body
Sewing of back neck facing to back panel
Sewing of back hanger loop
Sewing of back raglan seam
Sewing of hood panel seams
Sewing of eyelet, drawcord and stopper to hood

Joining of back panel to front panel at raglan seams Setting of hood to body
Setting of woven tape to neck seam
Setting of facing along panel edges
Sewing of labels
Thread trimming
Ironing
Attaching hangtags
Packing
Packaging

ISSUE:

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

CLASSIFICATION:

The applicable subheading for the poncho will be 6202.12.2050, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for other women’s overcoats, carcoats, capes, cloaks and similar coats, of cotton. The rate of duty will be 9.1 percent ad valorem.

This poncho falls within textile category designation 335. 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

6201-6208 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.

As the subject merchandise is not wholly assembled in a single country, territory, or insular possession, the terms of the tariff shift are not met.

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, under Scenario ‘A’, the joining of the front panels, the side panels and the back panel at one raglan seam constitute the most important assembly processes. Accordingly, the country of origin of the poncho under Scenario ‘A’ is country “A”: China.

In the case of the subject merchandise, under Scenario ‘B’, the joining of the front and back panels at the raglan seams and the attachment of the hood to the body constitute the most important assembly processes. Accordingly, the country of origin of the poncho under Scenario ‘B’ is country “B”: Hong Kong, Taiwan or the Philippines.

HOLDING:

The country of origin of the poncho under scenario “A” is country ‘A’: China. The country of origin of the poncho under scenario “B” is country ‘B’: Hong Kong, Taiwan or the Philippines. Based upon international textile trade agreements products of Hong Kong, Taiwan and the Philippines 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 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 W. Raftery at 212-637-7076.

Sincerely,

Robert B. Swierupski
Director,

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