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NY G81722




October 5, 2000

CLA2-RR:NC:3:353 G81722

CATEGORY: CLASSIFICATION

Mr./Ms. Sandy Schonwald
Aquarius Ltd.
3200 South Kingshighway
St. Louis, MO 63139

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

Dear Mr./Ms. Schonwald:

This is in reply to your letter dated September 13, 2000, requesting a classification and country of origin determination for four baseball-style caps which will be imported into the United States.

FACTS:

The submitted samples consist of styles bsc-1263-wm, bsc-1267-wm, bsc-1272-wm and bsc-1277-wm baseball-style caps. All the styles are constructed of woven 100% cotton fabric. Style bsc-1263-wm features screen-printing, a peak, and four-panel crown with an adjustable hook and loop strip at the back. Styles bsc-1267-wm and bsc-1272-wm feature a peak, and six-panel crown with vents and an adjustable hook and loop strip at the back. Style bsc-1277-wm features a peak, and six-panel crown with vents and an adjustable drawstring at the back.

The manufacturing operations for the caps are as follows:

Taiwan:

Weaving and dying of woven cotton fabric
Screen printing of fabric (as applicable) Cutting into crown components
Assembly into front panels
Assembly into rear panels
Assembly of crown

China:

Cutting into peak and sweatband components Assembly of peak
Embroidery of vents (where applicable)
Assembly of sweatband
Assembly of crown and peak together
Inspecting, trimming, finishing and packing

ISSUE:

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

CLASSIFICATION:

The applicable subheading for the styles bsc-1263-wm, bsc-1267-wm, bsc-1272-wm and bsc-1277-wm baseball-style caps will be 6505.90.2060, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for “Hats and other headgearmade up from lace, felt or other textile fabric, in the piece (but not in strips)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.

Styles bsc-1263-wm, bsc-1267-wm, bsc-1272-wm and bsc-1277-wm fall 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.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

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 the merchandise must be wholly assembled in a single country. Accordingly, as the assembly is not performed 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 assembly into front panels, assembly into rear panels, and assembly of the crown constitute the most important assembly processes. Accordingly, the country of origin of the caps is Taiwan.

HOLDING:

The country of origin of the styles bsc-1263-wm, bsc-1267-wm, bsc-1272-wm and bsc-1277-wm baseball-style caps 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 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 Kenneth Reidlinger at 212-637-7084.

Sincerely,

Robert B. Swierupski
Director,

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