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NY H88259





March 25, 2002

CLA2-61:RR:NC:TAB:354 H88259

CATEGORY: CLASSIFICATION

Mr. Robert L. Eisen
Mr. Michael D. Cleaver
Coudert Brothers
1114 Avenue of the Americas
New York, NY 10036-7703

RE: The country of origin marking for gloves knit to shape in the United States and further processed in Mexico; 19 CFR 102.21; 19 CFR 102.19; 19 CFR 12.130(c)

Dear Mr. Eisen & Mr. Cleaver:

In your letter dated February 19, 2002, on behalf of Ansell Protective Products, Inc. you inquired about the country of origin and marking for string knit gloves.

FACTS:

The subject merchandise consists of string knit gloves and string knit gloves with PVC dot coating on both sides.

The manufacturing operations for the items are as follows:

SCENARIO 1 – The gloves are string knit in the United States from U.S. origin yarn. The gloves are then sent to Mexico where an overedge thread is sewn to the wrist and a quality control inspection is performed. The gloves are then imported into the U.S. for special cleaning and packaging.

SCENARIO 2 – The gloves are string knit in the United States from U.S. origin yarn. The gloves are then sent to Mexico where an overedge thread is sewn the wrist, a quality control inspection is performed and the product label is sewn on. The gloves are packed in Mexico and returned to the U.S.

SCENARIO 3 – The gloves are string knit in the United States from U.S. origin yarn. The gloves are then sent to Mexico where an overedge thread is sewn to the wrist, the product label is sewn on, the PVC dots are applied and a quality control inspection is performed. The gloves are packed in Mexico and returned to the U.S.

Please note that all styles are assumed to be of man-made fibers.

ISSUE:

What is the classification, country of origin and marking of the subject merchandise?

CLASSIFICATION:

The applicable subheading for the gloves in the first and second scenario 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 : without fourchettes. The rate of duty will be 18.8 percent ad valorem. The applicable subheading for the gloves in the third scenario will be 6116.10.5520, HTSUSA, which provides for gloves, mittens and mitts, knitted or crocheted: impregnated, coated or covered with plastics or rubber other of synthetic fibers: other : without fourchettes: subject to man-made fiber restraints. The rate of duty will be 13.4 percent ad valorem.

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 even involving a NAFTA 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 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.

All of the gloves are knit to shape in a single country, that is the United States, as per the terms of the tariff shift requirement, country of origin is conferred in the United States.

However, the NAFTA Preference Override set forth in 19 C.F.R. §102.19 is applicable to the subject merchandise. Specifically, 19 C.F.R. §102.19(b) states:

If, under any provision of this part, the country of origin of a good which is originating ..... is determined to be the United States and that good has been exported from, and returned to, the United States after having been advanced in value or improved in condition in another NAFTA country, the country of origin of such good for Customs duty purposes is the last NAFTA country in which that good was advanced in value or improved in condition.

Based on the facts presented, the gloves at issue are an originating good under NAFTA and have been determined under section 102.21(c)(2) to be a good of U.S. origin. Because the articles were returned to the U.S. after having been advanced in value or improved in condition in Mexico by virtue of overedge stitching, labeling and PVC dot application, the country of origin of the gloves for Customs duty purposes is Mexico, pursuant to 19 C.F.R. §102.19(b). Accordingly, the “MX” NAFTA rate will be applicable to the gloves.

MARKING

On July 11, 2000, Customs published T.D. 00-44 in the Federal Register (65 FR 42634), stating that effective October 10, 2000, Customs will no longer apply 19 CFR 12.130(c) for purposes of country of origin marking, which was a change in the position articulated in T.D. 90-17, issued February 23, 1990, whereby section 12.130(c) was applied in making country of origin determinations for quota/visa, duty, and marking purposes. additionally, T.D. 00-44 pointed out that Customs had already concluded, in connection with the development of the final NAFTA Marking Rules (see 60 FR 22312, 22318, May 5, 1995), that Chapter 98, Subchapter II, U.S. Note 2(a), should not apply for general country of origin purposes, including marking. Accordingly, pursuant to T.D. 00-44, section 12.130(c), and section 102.21(c)(2), the country of origin of the gloves for duty and quota/visa purposes will be Mexico, while the country of origin for marking purposes remains the U.S.

HOLDING:

The country of origin of the gloves is Mexico. For marking purposes it is the United States. Accordingly, no marking will be required pursuant to 19 U.S.C. 1304.

Please also be advised that the Federal Trade Commission, Division of Enforcement, 601 Pennsylvania, Ave., N.W., Washington, D.C. 20580, should be consulted concerning specific labeling requirements under its jurisdiction.

The holding set forth 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 Brian Burtnik at 646-733-3054.

Sincerely,

Robert B. Swierupski
Director,

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