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NY H81844




August 10, 2001

CLA2-RR:NC:TA:N3:356 H81844

CATEGORY: CLASSIFICATION

Ms. Sasha Craig
Omnitrans, Inc.
407, Rue McGill, Bureau 900
Montreal, Quebec H2Y 2G3
Canada

RE: Classification and status under the North American Free Trade Agreement (NAFTA) of men’s knit garments produced in Mexico and Canada; Article 509; Country of origin determination; 19 CFR 102.21(c)(2); tariff shift; Marking; 19 U.S.C. 1304

Dear Ms. Craig:

This is in reply to your letter dated June 11, 2001, on behalf of Aero Garment Ltd., in which you requested the classification, country of origin, originating status under the North American Free Trade Agreement (NAFTA), and marking requirements for men’s knit garments which will be produced in Mexico and Canada and imported into the United States. You have provided samples of the garments after assembly in Mexico but prior to screen-printing or embroidering in Canada. As requested, your samples will be returned.

FACTS:

You indicate that the imported garments will have embroidered or screen printed designs. Since the submitted samples were blank garments without screen printing or embroidery, for tariff classification purposes, we have designated Style 71000 as having screen printing only and Style 72000 as having various embroideries.

Style 71000 is a men’s T-shirt constructed from 100 percent cotton, finely knit jersey fabric. The garment has a rib knit, crew neckline; short, hemmed sleeves; and a hemmed bottom. The imported garment will have screen-printed designs on the front and/or back panels.

Style 72000 is a men’s pullover garment constructed from 100 percent cotton, finely knit jersey fabric. The garment has a rib knit, crew neckline; short, hemmed sleeves; and a hemmed bottom. The imported garment will have various embroidered designs on the front and/or back panels.

The manufacturing operations for the garments are as follows:

Mexico:
- Fibers of Mexican origin are spun into yarn The yarn is knit into tubular fabric for the body of the garment and ribbed fabric for the neckband The fabric is cut into component parts (tubular knit body panel, sleeves, neckband) - The component parts are completely assembled into a finished garment (the shoulders are sewn; the neckband is attached; the sleeves are sewn closed and attached to the body of the garment; the sleeves and the body panel are hemmed)

Canada:
- The garments are screen-printed or embroidered - The garments are packed for export to the United States

ISSUE:

What are the classification, country of origin, NAFTA status, and marking requirements of the subject merchandise?

CLASSIFICATION:

The applicable subheading for Style 71000 will be 6109.10.0012, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for T-shirts, singlets, tank tops and similar garments, knitted or crocheted: of cotton: men’s or boys’: other: other T-shirts: men’s. The general rate of duty will be 17.8 percent ad valorem.

The applicable subheading for Style 72000 (with a small embroidered design) will be 6109.10.0027, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for T-shirts, singlets, tank tops and similar garments, knitted or crocheted: of cotton: men’s or boys’: other: other. The general rate of duty will be 17.8 percent ad valorem.

The applicable subheading for Style 72000 (with large or multiple embroidered designs) will be 6110.20.2065, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for sweaters, pullovers, sweatshirts, waistcoats (vests) and similar articles, knitted or crocheted: of cotton: other: other: other: men’s or boys’. The general rate of duty will be 17.8 percent ad valorem.

The garments will qualify for preferential treatment under the NAFTA because any non-originating materials used in the production of the good will undergo the change in tariff classification required by General Note 12(t)/61.35. Styles 71000 and 72000 will be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations and agreements. The free duty rate applicable to Style 72000 (with large or multiple embroidered designs) is pursuant to subheading 9906.61.14. Because the garments are “originating” under the NAFTA, these garments are not subject to visa requirements or quota restraints.

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 Regulat ions, 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

6101-6117 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.

Paragraph (b) (6) defines “wholly assembled” as:

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.

The submitted garments are not knit to shape and consist of two or more parts. As the embroidery and screen printing is considered a minor attachment and/or minor embellishment, and as all of the assembly operations performed on the garment occur in Mexico, the garments are considered “wholly assembled” in a single country, that is, Mexico. As per the terms of the tariff shift requirement, country of origin is conferred in Mexico.

MARKING:

The marking statute, Section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless excepted, every article of foreign origin (or its container) imported into the U.S. shall be marked in a conspicuous place as legibly, indelibly and permanently as the nature of the article (or its container) shall permit in such a manner as to indicate to the ultimate purchaser in the U.S., the English name of the country of origin of the article.

As the garments are fully assembled in Mexico, they are considered a product of Mexico. Accordingly, the marking “Made in Mexico” satisfies the requirements of Section 304 of the Tariff Act.

The marking of the garments must also be in accordance with the Textile Fiber Products Identification Act (15 U.S.C. 70 through 70k) and the rules promulgated thereunder by the Federal Trade Commission. Therefore, we suggest that you contact the Federal Trade Commission, Division of Enforcement, 6th and Pennsylvania Avenue, N.W., Washington, D.C. 20508, to determine those requirements.

HOLDING:

The applicable subheading for Style 71000 will be 6109.10.0012, (HTSUSA), which provides for T-shirts, singlets, tank tops and similar garments, knitted or crocheted: of cotton: men’s or boys’: other: other T-shirts: men’s. The general rate of duty will be 17.8 percent ad valorem.

The applicable subheading for Style 72000 (with a small embroidered design) will be 6109.10.0027, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for T-shirts, singlets, tank tops and similar garments, knitted or crocheted: of cotton: men’s or boys’: other: other. The general rate of duty will be 17.8 percent ad valorem.

The applicable subheading for Style 72000 (with large or multiple embroidered designs) will be 6110.20.2065, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for sweaters, pullovers, sweatshirts, waistcoats (vests) and similar articles, knitted or crocheted: of cotton: other: other: other: men’s or boys’. The general rate of duty will be 17.8 percent ad valorem.

The garments will qualify for preferential treatment under the NAFTA because any non-originating materials used in the production of the good will undergo the change in tariff classification required by General Note 12(t)/61.35. Styles 71000 and 72000 will be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations and agreements. Because the garments are “originating” under the NAFTA, they are not subject to visa requirements or quota restraints.

This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 C.F.R. 181).

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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