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NY I81585




June 7, 2002

CLA2-RR:NC:61:N3 I81585

CATEGORY: CLASSIFICATION

Mr. Bernard Seah
Country General Manager
Ghim Li Global Pte., Ltd.
No. 41 Changi South Avenue 2
Singapore 486153

RE: Classification and country of origin determination for women’s knitwear: 19 CFR 102.21(c)(2) and 102.21(c)(4)

Dear Mr. Seah:

This is in reply to your letter dated May 8, 2002, requesting a classification and country of origin determination for women’s knitwear that will be imported into the United States. You submitted one sample of a finished garment, as well as one sample of the garment in its unfinished condition. These samples are returned as requested.

FACTS
The subject merchandise consists of a woman’s knitted pullover, Style BB2F440, which has a v-shaped neckline and long, hemmed sleeves. At the bottom of the garment, which is also hemmed, there are two three-inch side slits. The knitted fabric of the pullover has more than nine stitches per two centimeters, measured in the direction in which the stitches were formed. There is embroidery around the neckline at the upper front and decorative stitching at the edge of the neckline. On the inside of the pullover there is a half moon at the rear neckline. There is a fabric strip inside the front panel that serves as a facing. Lastly, on the inside front there is an inserted panel which covers only the chest area. The fiber content of the pullover is 60% cotton, 40% polyester. The unfinished garment consists of the front and rear panels only (no sleeves). These panels are partially joined at the shoulders, but not at the sides. The embroidery is present on the front panel. On the inside at the neckline, the half moon of fabric is present at the rear and the facing is present at the front. The decorative stitching finishes the edge of the neckline. SPECIAL NOTE: although your unfinished sample is only partially sewn at the shoulders, your description of the assembly processes under both production plans speaks only of “joining of the shoulder seams” in each plan, without specifying whether the processing occurs in a single operation or in disparate operations. For the purpose of this ruling we are assuming that this operation occurs in a single country and in a single operation.

The manufacturing operations for the pullover, Style BB2F440, are as follows:

Production Plan I

Country A

-mark and make pattern
-cut piece goods into component shapes
-embroider front panel
-sew decorative stitching onto neckline
-sew half moon inside rear panel at neckline

Country B

-sew inside front fabric and facing
-sew shoulder seams of front and rear panels -attach sleeves to front and rear panels
-sew side seams for front and rear panels -sew sleeve seams
-hem front and rear panels
-sew side vents

Production Plan II

Country A

-mark and make pattern
-cut piece goods into component shapes
-embroider front panel

Country B

-sew decorative stitching onto neckline
-sew inside front fabric
-sew half moon inside rear neckline
-sew shoulder seams of front and rear panels -attach sleeves to the front and rear panels -sew side seams of the front and rear panels -sew the sleeve seams
-hem the front and rear panels
-sew the side vents

ISSUE:

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

CLASSIFICATION:

The applicable subheading for the woman’s knitted pullover, Style BB2F440, will be 6110.20.2075 Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for sweaters, pullovers, --- and similar articles, knitted or crocheted: of cotton: other: other: other: women’s. The rate of duty will be 17.3% ad valorem.

The pullover falls 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 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.

Under Production Plan I, there is assembly processing in both Country A and Country B; while under Production Plan II, there is assembly processing only in Country B. The embroidery, which occurs in both countries, does not affect the status of the assembly processes. The Customs Regulations, (C.R.), Section 102.21 (b) (6) are noted.

Section 102.21(e) states that where the good is not knit to shape and consists of two or more component parts which undergo a change to an assembled good of heading 6101 through 6117 from unassembled components the change must be the result of an assembly in a single country, territory or insular possession. Under Production Plan I, which has assembly processing in two countries, the terms of the tariff shift are not met. Accordingly, the pullover does not qualify for the tariff shift and C.R. Section 102.21(c)(2) is inapplicable. However, under Production Plan II, which has assembly processing in only in one country, viz., Country B, C.R., Section 102.21 (c) (2) does apply and the country of origin is Country B.

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":

(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, that is, the pullover under Production Plan I, is not wholly assembled in a single country, C.R. Section 102.21 (c)(3) is inapplicable.

C.R. 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, that is, the pullover under Production Plan I, the sewing of the shoulders at the front and rear panels, the attaching of the sleeves to the front and rear panels, and the sewing of the side seams, all of which occur in Country B, constitute the most important assembly processes. Accordingly, the country of origin of the pullover under Production Plan I is Country B.

HOLDING:

The country of origin of the pullover, Style BB2F440, under both Production Plan I and Production Plan II is Country B. Based upon international textile trade agreements products of Country B may be 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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