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NY G84047





January 16, 2001

A2-RR:NC:61:TA 359 G84047

CATEGORY: CLASSIFICATION

Mr. Joseph P. Cox
Stein, Shostak, Shostak & O’Hara
515 South Figueroa Street
Suite 1200
Los Angeles, CA 90071-3329

RE: Classification and country of origin determination regarding two styles of women’s knitwear; 19 CFR 102.21(c)(3)

Dear Mr. Cox:

This is in reply to your letter dated November 7, 2000, submitted on behalf of your client, Top Knitters Ltd., Block C1, 11/F 760 Chung Sha Wan Road, Kowloon, Hong Kong, requesting a classification and country of origin determination for two styles of woman’s knitwear which will be imported into the United States.

You submitted samples of both garments and samples of the component panels from which the items are assembled. All samples will be retained for instructional purposes.

FACTS:

The subject merchandise consists of two women’s knitted garments. Style 101 is a woman’s 100% cotton variable rib-knit pullover. The pullover features a round neckline with a capping finishing off the neckline, short sleeves with tubular knit cuffs and a tubular knit waistband. The pullover extends from the wearer’s neck and shoulders to below her waist. The outer surface of the pullover measures more than nine stitches per two centimeters, measured in the direction in which the stitches were formed.

Style 202 is a woman’s 100% cotton variable rib-knit cardigan. The cardigan features a round neckline with a capping finishing off the neckline and the front placket. The front placket has a full frontal opening with a nine button closure, long sleeves with tubular knit cuffs and a tubular knit waistband. The cardigan extends from the wearer’s neck and shoulders to below her waist. The outer surface of the cardigan measures more than nine stitches per two centimeters, measured in the direction in which the stitches were formed.

You also submitted the component panels from which the pullover, style 101 is assembled. These consist of:

Front Panel
self-start tubular bottom
self-finished sides
armholes contoured to shape during the knitting process
neckline shows a clear but not a continuous line of demarcation out of which its opening is cut

Back Panel
self-start tubular bottom
self-finished sides
armholes contoured to shape during the knitting process
neckline shows a clear but not continuous line of demarcation out of which its opening is cut

Sleeve Panels
self-start tubular ends
self-finished sides
areas where the sleeves are joined to the pullover at the armholes are contoured to shape during the knitting process

Panel Strips for Neck Capping

You also submitted the component panels from which the cardigan, style 202 is assembled. These consist of:

Front Panel
self-start tubular bottom
self-finished sides
armholes contoured to shape during the knitting process
neckline shows a clear but not a continuous line of demarcation out of which its opening is cut
one vertical row (wale) which shows a single missed stitch; this extends for the full length of the panel to indicate where it must be cut in half to form the two sides of the cardigan

Back Panel
self-start tubular bottom
self-finished sides
armholes contoured to shape during knitting process
neckline shows a clear but not continuous line of demarcation out of which its opening is cut

Sleeve Panels
self-start tubular ends
self-finished sides
areas where the sleeves are joined to the cardigan at the armholes are contoured to shape during the knitting process

Panel Strips for Neck and Placket Cappings

For the purpose of determining the country of origin of the two samples, and based on our determination that the sleeve panels, and the back and front panels for both samples qualify as knit-to-shape panels, we note that all of major component panels (the “major parts”) are considered to be knit to shape.

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

China the yarn which originates in China is sent to Canada

Canada
the front and back panels, and the sleeve panels are knit to shape.

China
the panels are returned to China where they are assembled by looping
the garments are washed, ironed, packed and inspected
the garments are shipped to the United States

ISSUE:

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

CLASSIFICATION:

The applicable subheading for the garments, Styles101 and 202 will be 6110.20.2075, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for sweaters, knitted or crocheted, of cotton; other, other: other: women’s or girls’. The rate of duty will be 17.8 percent ad valorem.

The garments fall within textile category designation 339. 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

6110.20.2075 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 shift from a heading outside of the designated grouping (i.e. headings 6101-6117). Accordingly, as the garments and their component panels are all classified inside of the designated grouping, they fail to meet the tariff shift requirement and therefore, the sweater does not qualify for country of origin determination under this section, and therefore, 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 knit to shape in a single country, viz. Canada, Section 102.21(c)(3) applies.

HOLDING:

The country of origin of the women’s knitted garments, Styles 101 and 102 is Canada. Based upon international textile trade agreements products of Canada are not subject to quota or 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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