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NY I84555




August 6, 2002

CLA2-RR:NC:TA-359:I84555

CATEGORY: CLASSIFICATION

Ms. Brenda A. Jacobs and
Ms. Maria DiGiulian
Sidley, Austin, Brown and Wood, LLP
1501 K Street, N.W.
Washington, D.C. 20005

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

Dear Ms. Jacobs and Ms. DiGiulian:

This is in reply to your letter dated July 25, 2002, submitted on behalf of Hoi Meng Garment Manufacturing, Ltd., requesting a classification and country of origin determination for a woman’s knitted velour jacket which will be imported into the United States. Your sample is returned as requested.

FACTS:

The subject merchandise consists of a woman’s knitted velour jacket, Style E07640, which consists of 100% cotton fibers. The jacket features a full-front opening with a zippered closure, long sleeves with elasticized cuffs, a johnny collar at the neck, an elasticized bottom and two side-entry pockets at the front. On the inside of the jacket at the neck there is a half moon insert and a hanger loop. The fabric of the jacket is napped on one side. This fabric consists of a great number of small panels which, when sewn together, form each of the major component panels (the front, back and two sleeves). This construction gives the jacket a patchwork appearance.

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

In Country A
-cut the fabric into small panels
-assemble the sleeve panels from the small panels -assemble the front and back panels from the small panels -stitch the seams of the small panels of the sleeves, the front and the back panels with an overlock stitch -stitch the edges of the placket and the half moon insert with an overlock stitch
-assemble the johnny collar
-sew the half moon to the inside back panel -sew the pockets with an overlock stitch and attach them to the front panels

In Country B
-sew the shoulder seam at the front and back panels -sew the sleeves to the front and back panels -sew the sleeves closed
-sew the side seams and the underarm seams -attach the elastic to the sleeve ends and to the bottom of the jacket -hem the bottom
-attach the inside hanger loop
-attach the zipper

In Country A
-attach the collar
-finish the jacket.

You note that neither of the two countries which perform these operations are a party to a Free Trade Agreement with the United States.

ISSUE:

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

CLASSIFICATION:

The applicable subheading for the woman’s knitted velour jacket, Style E07640, will be 6102.20.0010, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for women’s –-- overcoats, carcoats---windbreakers and similar articles, knitted or crocheted, other than those of heading 6104: of cotton, women’s. The rate of duty will be 16.1% ad valorem.

The jacket falls within textile category designation 335. 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

6102.20 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.

Section 102.21(e) states that, for garments which are not knit to shape and which consist of two or more component parts, a change must occur to an assembled good of heading 6101 through heading 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. Although the good is changed from unassembled components to an assembled good, this change is not the result of the good being assembled in a single country, territory or insular possession. Accordingly, as the requirement of Section 102.21(e) is not met, 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 to shape 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 sewing of the seam at the shoulders (joining the front and back panels), the sewing of the sleeves to the body, the sewing of the side seams and underarm seams (joining the front and back panels at the sides), the attaching of the elastic and the attaching of the zipper, all of which occur in Country B, constitute the most important assembly processes. Accordingly, the country of origin of the woman’s knitted velour jacket, Style E07640, is Country B.

HOLDING:

The country of origin of the woman’s knitted velour jacket 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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