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NY H88315




March 4, 2002

CLA2-RR:NC:61:TA-359 H88315

CATEGORY: CLASSIFICATION

Mr. Bill Julich
Delmar International, Inc.
147-55 175th St.
Jamaica, New York 11434

RE: Classification and country of origin determination for a woman’s knitted pullover sweater; 19 CFR 102.21(c)(4)

Dear Mr. Julich:

This is in reply to your letter dated February 25, 2002, which you submitted on behalf of your client, Charter Ventures LLC, New York City, which requested a classification and country of origin determination for a woman’s knitted pullover sweater which will be imported into the United States. The sweater under consideration is identical to the garment for which you submitted a previous ruling request. That sweater also had the same style number as the sweater presently under review, that is, Style 712. We responded to your earlier request in New York Ruling Letter H86064, which was issued to you on January 16, 2002. The current ruling letter responds in the same manner concerning the classification of the sweater but, since you indicate an altered set of circumstances regarding its manufacturing processes, our response concerning the country of origin of the sweater differs from that furnished you in our original ruling letter.

FACTS:

The subject merchandise consists of a woman’s knitted pullover sweater, Style 712. The sweater has a crew neckline that is finished with rib knit capping. It also has long sleeves. The sweater covers the wearer’s upper body from her neck and shoulders to below her waist. The knitted fabric of the sweater has nine or fewer stitches per two centimeters, measured in the direction in which the stitches were formed. The front panel of the sweater is composed of two separate panels. The fiber content of the sweater is 100% cotton. You also submitted the component panels from which the sweater is constructed. The sample of the sweater and its panels are returned as requested.

The component panels consist of the following:

Back Panel:
-self-start bottom (tubular)
-self-finished sides
-armholes contoured to shape during the knitting process

Two Sleeve Panels:
-self-start ends (tubular)
-self-finished sides
-fabric which is joined to the body is contoured to shape during the knitting process

Front Panel (consists of two sections):
-Bottom section (about 2/3rd of the panel) -self-start bottom (tubular)
-self-finished sides
-armholes partially contoured to shape during the knitting process -armholes partially cut to allow assembly of upper section of the front panel

-Top Section (about 1/3rd of the panel)
-fabric cut and assembled, not knit to shape

Strip of Fabric for Neck Trim

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

Country A – Vietnam
-knit back and bottom of front panel
-knit top of front panel and knit neck trim

Country B – China
-knit sleeve panels
-link component panels

The back panel and the two sleeve panels are considered as knit-to-shape panels. The front panel at the top is formed by cutting to shape, thus the front panel is not considered as a knit-to-shape panel.

ISSUE:

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

CLASSIFICATION:

The applicable subheading for the woman’s knitted pullover sweater, Style 712, will be 6110.20.2020, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for sweaters ---and similar articles, knitted or crocheted: of cotton: other: other: sweaters, women’s. The rate of duty will be 17.3% ad valorem.

The sweater falls within textile category designation 345. 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

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 (b) (3) states that the term “knit to shape” applies to any good of which 50% or more of the exterior surface area is formed by major parts that have been knitted or crocheted directly to the shape used in the good---.

Regarding the sample under review, the back and the sleeve panels are considered as knit to shape, while the front panel is not considered as knit to shape. However, since the back panel, when combined for measuring purposes with the two sleeve panels, constitutes more than 50% of the surface area of the sweater, it is considered as a knit-to-shape sweater.

Section 102.21(e) states that, for garments which are knit to shape, the tariff shift to heading 6101 through 6117 must take place from any heading outside that group, and that the knitting to shape process must take place in a single country. However, in the present circumstance the tariff shift occurs inside the grouping, i.e., from the panels in heading 6117, to the sweater in heading 6110, and the knitting to shape occurs in two countries, Country A, Vietnam, and Country B, China. Accordingly, as the requisite tariff shift does not take place, 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 but is not knit 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 knitting to shape of the sleeves combined with the linking of the component panels into the finished sweater constitute the most important assembly processes. Accordingly, as these processes occur in Country B, China, the country of origin of the pullover sweater is Country B, China.

HOLDING:

The country of origin of the woman’s knitted pullover sweater is Country B, China. Based upon international textile trade agreements products of China 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 Mike Crowley at 646-733-3049.

Sincerely,

Robert B. Swierupski
Director,

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