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NY I89372




January 14, 2003

CLA2-61-RR:NC:N3:TA-359: I89372

CATEGORY: CLASSIFICATION

Mr. Bernard Seah
Corporate 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)(4)

Dear Mr. Seah:

This is in reply to your letter dated December 18, 2002, requesting a classification and country of origin determination for a sample of women’s knitwear which will be imported into the United States. Your sample is returned as requested.

FACTS:

The subject merchandise consists of a woman’s knitted cardigan that is composed of 76% cotton, 24% polyester fibers. The upper body garment has a full-front opening with a zippered closure, an attached hood with a drawstring closure, long sleeves with rib knit cuffs, a hemmed bottom with a small slit at each side and slanted pockets at the waist. The knitted fabric of the cardigan has more than nine stitches per two centimeters, measured in the direction in which the stitches were formed. A decorative strip of woven fabric covers the top of each pocket. The style number is WF 060.

The manufacturing operations for the woman’s knitted cardigan, according to the four production plans that you propose, are as follows:

Production Plan I
In Country A
-make and mark pattern
-cut piece goods into component panels
-sew pockets to front panels
-sew front and back panels at shoulder seams -sew sleeves to body
-sew side seams
-sew cuffs to sleeves

In Country B
-make hood and insert drawstring
-sew hood to body
-make zipper

In Country A
-inspect cardigan

Production Plan II
In Country A
-make and mark pattern
-cut piece goods into component panels

In Country B
-make hood and insert drawstring
-sew pockets to front panels
-sew front and back panels at shoulder seams -sew hood to body
-make zipper and sew it to body

In Country A
-sew sleeves to body
-sew side seams
-sew cuffs to sleeves

Production Plan III
In Country A
-make and mark pattern
-cut piece goods into component panels

In Country B
-make hood and insert drawstring
-sew pockets to front panels
-sew front and back panels at shoulder seams -sew sleeves to body

In Country A
-sew hood to body
-make zipper and sew it to body
-sew side seams
-sew cuffs to sleeves

Production Plan IV
In Country A
-make and mark pattern
-cut piece goods into component panels
-make hood and insert drawstring
-sew pockets to front panels
-sew front and back panels at shoulder seams -sew hood to body
-make zipper and sew it to body

In Country B
-sew sleeves to body
-sew side seams
-sew cuffs to sleeves.

ISSUE:

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

CLASSIFICATION:

The applicable subheading for the woman’s knitted cardigan 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 16.9 % ad valorem.

The cardigan 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 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 the tariff shift must be the result of the good being wholly assembled in a single country, territory or insular possession. Under the four production plans that you have submitted, assembly processing occurs in more than one country and therefore, the terms of the tariff shift are not fulfilled. Accordingly, as the cardigan does not qualify for the tariff shift, 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, according to each of the four production plans that you submitted, the following constitute the most important assembly processes: Under Production Plan I
-sewing the pockets to the front panels
-sewing of the front and back panels at the shoulders -sewing of the sleeves to the body and
-sewing of the side seams’, all of which occur in Country A;

Under Production Plan II
-sewing the pockets to the front panels
-sewing the front and back panel at the shoulder seams -sewing the hood to the body and
-making and sewing the zipper to the body, all of which occur in Country B;

Under Production Plan III
-sewing the hood to the main body
-making and sewing the zipper to the body, and -sewing the side seams, all of which occur in Country A;

Under Production Plan IV
-sewing the pockets to the front panels
-sewing the front and back panels at the shoulder seams -sewing the hood to the body and
-making and sewing the hood to the body, all of which occur in Country A.

Accordingly, the country of origin of the woman’s knitted cardigan, Style WF 060, is as follows: -for Production Plan I – Country A
-for Production Plan II – Country B
-for Production Plan III – Country A
-for Production Plan IV – Country A.

HOLDING:

The country of origin of the woman’s knitted cardigan, Style WF 060, is Country A for Production Plans I, III and IV, and Country B for Production Plan II. Based upon international textile trade agreements products of these countries 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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