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NY I86568




November 1, 2002

CLA2-RR:NC:TA:N3:356 I86568

CATEGORY: CLASSIFICATION

Mr. Frank Prackler
Harold I. Pepper Co., Inc.
181 South Franklin Avenue, Suite 218
Valley Stream, NY 11581

RE: Classification and country of origin determination for a men’s knit garment; 19 CFR 102.21(c)(1); wholly produced; 19 CFR 102.21(c)(2); tariff shift.

Dear Mr. Prackler:

This is in reply to your letter dated October 2, 2002, on behalf of Henry L. Blum, Inc., concerning the classification and country of origin determination for a men’s knit garment that will be imported into the United States. You state that four different production plans are being considered and that the manufacturing operations will occur either entirely in Bolivia or in Bolivia and either China, India or Colombia. You have provided a sample of the finished garment for our review. As requested, your sample will be returned.

FACTS:

The submitted sample is a men’s pullover garment constructed from 100% cotton, finely knit, jersey fabric that measures 28 stitches per two centimeters counted in the horizontal direction. The sample has a rib knit mock turtleneck; short, hemmed sleeves; and a straight, hemmed bottom. The front and the back panel and the sleeves are each constructed from a single piece of fabric.

The manufacturing operations for Production Plan #1 are as follows:

CHINA:
- 100% cotton yarn is knit into bolts of fabric

BOLIVIA:
- The fabric is cut into component parts
- The component parts are assembled into completed garments - The garments are inspected and packed for export to the United States

The manufacturing operations for Production Plan #2 are as follows:

INDIA:
- 100% cotton yarn is knit into bolts of fabric

BOLIVIA:
- The fabric is cut into component parts
- The component parts are assembled into completed garments - The garments are inspected and packed for export to the United States

The manufacturing operations for Production Plan #3 are as follows:

BOLIVIA:
- 100% cotton yarn is knit into bolts of fabric - The fabric is cut into component parts
- The component parts are assembled into completed garments - The garments are inspected and packed for export to the United States

The manufacturing operations for Production Plan #4 are as follows:

BOLIVIA:
100% cotton fibers will be spun into yarn

COLOMBIA:
- The yarn is knit into bolts of fabric

BOLIVIA:
- The fabric is cut into component parts
- The component parts are assembled into completed garments - The garments are inspected and packed for export to the United States

ISSUE:

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

CLASSIFICATION:

The applicable subheading for the submitted garment will be 6110.20.2065, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for men’s or boys’ pullovers, and similar articles, knitted or crocheted: of cotton: other: other: other: men’s or boys’. The general rate of duty is 17.3 percent ad valorem.

The garment falls within textile category designation 338. 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." For Production Plan #3, the subject merchandise is wholly obtained or produced in a single country, that is, Bolivia. As per the terms of the regulations, country of origin is conferred in Bolivia. For Production Plans #1, # 2 and #4, 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 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.

Paragraph (b) (6) defines “wholly assembled” as:

The term “wholly assembled” when used with reference to a good means that all components, of which there must be at least two, preexisted in essentially the same condition as found in the finished good and were combined to form the finished good in a single country, territory, or insular possession. Minor attachments and minor embellishments (for example, appliques, beads, spangles, embroidery, buttons) not appreciably affecting the identity of the good, and minor subassemblies (for example, collars, cuffs, plackets, pockets) will not affect the status of a good as “wholly assembled” in a single country, territory, or insular possession.

The submitted garments are not knit to shape and consist of two or more parts. As all of the assembly operations in Production Plans #1, #2, and #4 occur in Bolivia, the garments are considered “wholly assembled” in a single country, that is, Bolivia. As per the terms of the tariff shift requirement, country of origin is conferred in Bolivia.

You also inquired about the duty status of this merchandise under the Andean Trade Preference and Drug Eradication Act (ATPDEA). As of the date of this ruling, there is no preferential duty treatment for this merchandise from Bolivia. However, we suggest that you monitor the Federal Register for a future Presidential Proclamation that may change this status.

HOLDING:

The country of origin of the sample garment is Bolivia in Production Plans #1, #2, #3, and #4. Based upon international textile trade agreements, products of Bolivia are not currently subject to visa requirements or quota restraints.

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 sections 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 Mary Ryan at 646-733-3271.

Sincerely,

Robert B. Swierupski
Director,

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