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NY I82356




June 26, 2002

CLA-2-61:RR:NC:TA: 359: I82356

CATEGORY: CLASSIFICATION

TARIFF NO.: 6110.20.2075; 9802.00.50

Mr. Daniel Bazua
R.L. Jones Customhouse Brokers, Inc.
23590 S. Cesar Chavez St.
San Luis, Arizona 85349

RE: The tariff classification of a woman’s knitted pullover from Mexico

Dear Mr. Bazua:

In your letter dated June 4, 2002, submitted on behalf of Winstar Textiles, Inc., El Monte, California, you requested a ruling for a woman’s knitted pullover on its tariff classification and its status under the provision for goods returned to the United States after being advanced in value by a repair or alteration. Your samples are returned as requested.

Your sample, Style Y230T371, is a woman’s knitted, sleeveless pullover that has a fiber content of 100% cotton. The fabric across the shoulders, which measures over three inches in width, is gathered by sewing in two places at each shoulder. The edges of the armholes, the round neckline and the bottom are finished with overlock stitching. The knitted fabric of the pullover has more than nine stitches per two centimeters, measured in the direction in which the stitches were formed. In its finished form the pullover has a logo on the front at the chest which is applied by a heat transfer process. There are two versions of the sample that you submitted. The first represents the pullover after it is assembled in Mexico but before it receives the logo through the heat transfer process. This is letter “B” in your presentation of the production process. The second version represents the assembled pullover with the logo applied by the heat transfer process. This is letter “D” in your presentation of the production process.

You state that the fabric for the pullover is knit and cut in the United States. The component panels are shipped to Mexico where they are assembled into the (unfinished) pullover. The unfinished pullover is then returned to the United States for dyeing but is subsequently re-exported to Mexico where the logo is applied by heat transfer. The finished pullover is inspected, packed and exported to the United States. You ask whether, under these circumstances, the finished pullover qualifies for partial duty exemption as an article that was returned to the United States after having been exported to be advanced in value or improved in condition by a repair or an alteration under item number 9802.00.50, Harmonized Tariff Schedule of the United States Annotated, HTSUSA.

The applicable subheading for the woman’s knitted pullover, Style Y230T371, will be 6110.20.2075, Harmonized Tariff Schedule of the United States (HTS), which provides for sweaters, pullovers --- and similar articles, knitted or crocheted: of cotton: other: other :other: women’s. The duty rate will be 17.3% ad valorem.

Subheading 9802.00.50, HTSUSA, provides for the assessment of duty on the value of repairs or alterations performed on articles returned to the United States after having undergone These operations in the foreign country. However, the application of this tariff provision is precluded in circumstances where the operations performed abroad destroy the identity of the articles or create new or commercially different articles. There exist previous headquarters’ decisions that exclude certain operations from eligibility from this tariff provision. For example, HQ554974, July 27, 1988, excluded U.S.-made sweatshirts that are design hand-painted abroad and returned to the United States. Similarly, HQ555021, July 1, 1988, did not consider a foreign silk screening operation as a repair or an alteration under this provision.

Concerning your sample and the application to it of the logo by means of the heat transfer process, we do not consider this operation either a repair or an alteration within the provision of item number 9802.00.50 HTSUSA. The placing of the logo on the pullover by this process gives it a special appeal and increases its marketability in the United States. A new and different article of commerce now exists for sale to the United States. Further, the process itself is a finishing operation, not a repair or an alteration. The sample is not eligible for the provision of item number 9802.00.50, HTSUSA

The pullover, Style Y230T371, falls within textile category designation 339. Based upon international textile trade agreements products of Mexico are subject to quota but do not require a visa at this time.

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.

This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).

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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