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NY H86153

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January 11, 2002

CLA2-RR:NC:3:353 H86153

CATEGORY: CLASSIFICATION

Mr. Curtis W. Knauss
Mr. John M. Peterson
Neville Peterson LLP
80 Broad Street - 34th Floor
New York, NY 10004

RE: Classification and country of origin determination for a hat, scarf and glove; 19 CFR 102.21(c) (2), (c) (4), (c) (5)

Dear Mr. Knauss and Mr. Peterson:

This is in reply to your letter dated December 6, 2001, on behalf of Accessory House, Ltd., requesting a classification and country of origin determination for a hat, scarf and glove which will be imported into the United States.

FACTS:

The subject merchandise consists of a hat, scarf and glove. You describe the hat and scarf construction as being knit to shape from synthetic fibers; examination reveals that the hat and scarf are constructed of synthetic tubular knit fabric. The knit synthetic fabric hat is a one-piece item with a sewn upper, and turned and sewn lower crown. The knit synthetic fabric scarf measures approximately 7 x 48 inches and features a fringe. The synthetic knit full fingered glove has a hemmed wrist.

The manufacturing operations for the hat and scarf are as follows:

In Taiwan, the tubular knit fabric for the hat and scarf is formed and separated into individual portions ready to produce an item. In Vietnam, for the hat, the upper crown is sewn and the bottom of the crown is turned and sewn. The scarf ends are sewn closed and a textile fringe is added.

Your submission describes the manufacture of the glove as follows:

A tubular glove body, featuring four open fingers and a thumb hole, is knit-to-shape in Taiwan, together with a knit open thumb tube. These two components are exported to Vietnam, where the thumb is attached to the glove body, and the fingertips are closed. The finished gloves are inspected, cleaned as necessary, and exported to the United States.

In a phone conversation your office also indicated a second scenario for production. In that scenario a tubular glove body with a thumbhole is knit in Taiwan. The tubular shell is sent to Vietnam where fingers and a thumb are added.

ISSUE:

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

CLASSIFICATION:

The applicable subheading for the hat will be 6505.90.6090, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for “Hats and other headgear, knitted or crocheted, or made up from lace, felt or other textile fabricwhether or not lined or trimmed: Other: Of man-made fibers: Knitted or crocheted or made up from knitted or crocheted fabric: Not in part of braid, Other: Other: Other.” The rate of duty will be 23.9 cents per kilogram plus 8.4% ad valorem.

The applicable subheading for the scarf will be 6117.10.2030, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for “Other made up clothing accessories, knitted or crochetedShawls, scarves, mufflers, mantillas, veils and the like: Of man-made fibers, Other.” The rate of duty will be 11.4% ad valorem.

The applicable subheading for the gloves will be 6116.93.8800, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for “Gloves, mittens and mitts, knitted or crocheted: Other: Of synthetic fibers: Other: Other: Without fourchettes.” The rate of duty will be 18.8% ad valorem.

The hat and scarf fall within textile category designation 659. The gloves fall within textile category designation 631. 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.

Regarding the hat, 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 (2) If the good does not consist of two or more components, a change to subheading 6505.90 from any other heading, except from heading 5007, 5111 through 5113, 5208 through 5212, 5407 through 5408, 5512 through 5516, 5602 through 5603, 5608, 5801 through 5804, 5806, 5808 through 5811, 5903, 5906 through 5907, and 6001 through 6002, and provided that the change is the result of a fabric-making process.

Section 102.21(e) states that merchandise classifiable under 6505.90 composed of fabric of headings 6001 through 6002 is excepted from the tariff shift rule. Accordingly, as the hat does not meet tariff shift requirements, 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 formation of the tubular knit fabric constitutes the most important process. Accordingly, the country of origin of the hat is Taiwan.

Regarding the scarf, Section 102.21 (b)(6) defines “wholly assembled.” It states “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 addition of the fringe to the scarf is considered a minor embellishment or subassembly and will not effect the country of origin determination of the item.

Section 405 within Title IV of the Trade and Development Act of 2000 amended the country of origin on certain textile products, including those classified under subheading 6117.10. Regarding 19 CFR Part 102, Customs published interim country of origin regulation T.D. 01-36 of May 1, 2001.

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 (2) If the good is not knit to shape and does not consist of two or more component parts, except for goods provided for in paragraph (e)(2) of this heading, a change to heading

Goods of 6117.10 are excepted and provided for in paragraph (e)(2). Paragraph (e)(2) states:

“(2) For goods of HTSUS headings 6213 and 6214 and HTSUS subheadings 6117.10, 6302.229404.90.85 and 9404.90.95, except for goods classified under subheadings as of cotton or of wool or consisting of fibers blends containing 16 percent or more by weight of cotton:”

(i) The country of origin is the country territory, or insular possession in which the fabric comprising the good was both dyed and printed accompanied by two or more of the following finishing operations

(ii) If the country cannot be determined under (i) above, except for goods of HTSUS subheading 6117.10 that are knit to shape or consist of two or more component parts, the country of origin is the country, territory, or insular possession in which the fabric comprising the good was formed by the fabric making process.

The scarf is made of 100% synthetic fabric and does not fall under the (e)(2) exceptions. The item is not dyed and printed as noted in (e)(2)(i). The good is not knit to shape and does not consist of two or more component parts. Therefore, country of origin is determined by application of paragraph (2)(e)(ii), and country of origin is conferred in Taiwan.

Regarding the gloves in the first scenario, 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:”

HTSUS Tariff shift and/or other requirements

(3) 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.

The subject gloves are classifiable in heading 6116, HTSUSA, and are composed of a man-made fiber yarn in a heading in either chapter 54 or 55. As, such the terms of the tariff shift are met. As the merchandise is knit-to-shape in a single country, the country of origin of the subject gloves is the country in which the knit-to-shape components are knit, that is, Taiwan.

Regarding the gloves, for the second scenario the following applies:

Section 102.21(e) states that if the good is knit to shape the knit-to-shape components must be knit in a single country, territory, or insular possession. Accordingly, the glove in scenario two does not meet this requirement, 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.”

As the components for the gloves are formed in more than one country, and no operation is more important than the other, a single country of origin determination cannot be made based on Section 102.21(c)(4).

Paragraph (c)(5) states that “Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1), (2), (3) or (4) of this section, the country of origin of the good is the last country, territory or insular possession in which an important assembly or manufacturing process occurred.”

Accordingly, in the case of the subject glove in scenario two, the last country in which an important assembly or manufacturing process occurred, that is, Vietnam confers country of origin.

HOLDING:

The country of origin of the hat, scarf, and gloves of scenario one is Taiwan. Taiwan is a member of the World Trade Organization (WTO), and the scarf and gloves are not subject to quota or the requirement of a visa. However, based upon international textile trade agreements the hat is subject to quota and the requirement of a visa. The country of origin for the gloves in scenario two is Vietnam. The gloves 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 Kenneth Reidlinger at 646-733-3053.

Sincerely,

Robert B. Swierupski
Director,

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See also:

• Tariff No.: 6116.93.88 - Gloves, mittens & mitts (excl. those designed for sports etc.), k/c, of synthetic fibers, under 23% by wt. of wool etc., w/o fourchettes
• Tariff No.: 6117.10.20 - Shawls, scarves, mufflers, mantillas, veils and the like, knitted or crocheted, of man-made fibers
• Tariff No.: 6209.20.50 - Babies' garments & clothing acc. nesoi, of cotton, incl. sunsuits & sim app, sets & parts of sets, & diapers, not knitted or crocheted
• Tariff No.: 6505.90.60 - Hats and headgear, of mmf, knitted or crocheted or made up from knitted or crocheted fabrics, not in part of braid
• Tariff No.: 9404.90.95 - Arts. of bedding & similar furnishings stuffed or internally fitted w/any material nesoi