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NY I89896




January 31, 2003

CLA2-61:RR:NC:N3:TA-359: I89896

CATEGORY: CLASSIFICATION

Ms. Marina Cheung
Executive Vice President
San Francisco Sales, Inc.
385 8th Street
San Francisco, California 94103

RE: Classification and country of origin determination for women’s knitwear; 19 CFR 102.21(c)(3)

Dear Ms. Cheung:

This is in reply to your letter dated November 15, 2002, and to your subsequent letters dated January 13 and 21, 2003, requesting a classification and country of origin determination for women’s knitwear which will be imported into the United States. We are returning your sample, as requested.

FACTS:
The subject merchandise consists of Style 1289, a woman’s knitted, full-length, cardigan sweater which has a full-front opening with four button closures, a high-neck collar and long sleeves. The sweater extends from the wearer’s neck and shoulders to below her knees. Its fabric has nine or fewer stitches per two centimeters, measured in the direction in which the stitches were formed. The fiber content is 80% merino wool, 20% nylon.

You also submitted the component panels from which the sweater is constructed. These consist of the following: Two Front Panels
-self-start bottoms
-self-finished sides
-armholes and neckline contoured to shape during the knitting process Back Panel -self-start bottom
-self-finished sides
-armholes and neckline contoured to shape during the knitting process

Two Sleeve Panels
-self-start ends
-self-finished sides
-contoured to shape during the knitting process at the point of joining the shoulders

Panel for Collar.

The manufacturing operations for the sweater are as follows: In Italy
-spin yarn

In Hong Kong
-knit all panels

In China
-assemble panels by looping.
We note that, for the purpose of determining the country of origin of the sweater, all of the component panels, that is the “major parts”, the two front panels, the back panel and the two sleeve panels, are considered to be knit to shape.

ISSUE:

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

CLASSIFICATION:

The applicable subheading for the woman’s cardigan sweater, Style 1289, will be 6110.11.0030, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for sweaters --- and similar articles, knitted or crocheted: of wool or fine animal hair: of wool: sweaters: women’s. The rate of duty will be 16.1% ad valorem.

The sweater falls within textile category designation 446. 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

6110.11 If the good is knit to shape, a change to heading 6101 through 6117 from any heading outside that group, provided that the knit-to-shape components are knit in a single country, territory or insular possession.

Section 102.21(e) states that, for goods that are knit to shape, the tariff change must occur from a heading outside the grouping 6101 through 6117. However, this change occurs within that grouping, that is, from the component panels of heading 6117 to the sweater of heading 6110. Accordingly, as the terms of the tariff shift are not fulfilled, 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":

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. As the subject merchandise is knit in a single country, namely in Hong Kong, Section 102.21(c)(3) applies.

HOLDING:

The country of origin of the woman’s knitted cardigan sweater, Style 1289, is Hong Kong. Based upon international textile trade agreements products of Hong Kong are 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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