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NY J80712




February 7, 2003

CLA-2-RR:NC:TA:N3:358 J80712

CATEGORY: CLASSIFICATION

Mr. Anthony Tonucci
Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP 245 Park Avenue 33rd Floor
New York, NY 10167-3397

RE: Classification and country of origin determination for girl’s knit blouse; Products of the West Bank, the Gaza Strip or a qualifying industrial zone; General Note 3(a)(v); General Note 8; 19 CFR 102.21(c)(2); tariff shift; T.D. 98-62.

Dear Mr. Tonucci:

This is in reply to a letter dated February 3, 2003, on behalf of your client Pfeiffer International Ltd., concerning the classification and country of origin of a girl’s knit garment that will be imported into the United States. You state that the manufacturing operations will occur in China and the Irbid QIZ, Jordan. You provided samples of the garment parts as sent to Jordan and the finished garment as imported into the United States. Your samples will be returned.

FACTS:

The submitted item, style FG-37360, is a girl’s bell sleeve blouse with lace-up faux suede placket and appliquework. The article has contrast colored overlock stitching at the neck, set-in sleeves, hem and sleeve openings. It is made of finely knit interlock fabric that is 100% cotton. The submitted sample is a girls’ size 10 1/2.

The manufacturing operations for Style FG-37360 are as follows:

CHINA:

The fabric is cut into shaped components; Overlocking edge stitch at collar (V-shape); Buttonholing, embroidery, overlocking edge stitch on faux suede fabric; and Attach suede applique to front panel

IRBID, QIZ, JORDAN:

The front and back panels are joined at the shoulder seams; Overlocking edge stitch at collar neckline; The side seams joining front and back panels are sewn; The sleeve panels are formed and sewn closed; The sleeves are sewn to front and back panels at armholes; Overlock edge stitch of sleeve cuffs;
Overlock edge stitch of bottom;
Insert faux suede string through button holes; Trimming and finishing;
Country of origin label is attached;
Washing and pressing;
Final quality control; and
Loading and shipping to U.S.

ISSUE:

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

CLASSIFICATION:

The applicable subheading for Style FG-37360 will be 6106.10.0030, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for women’s or girls’ blouses and shirts, knitted or crocheted, of cotton, girls’, other. The general rate of duty will be 19.8 percent ad valorem.

Style FG-37360 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.

You stated that the processing operations in Jordan were performed in the Irbid Qualifying Industrial Zone (QIZ). General Note 3(a)(v)(G), HTSUS, defines a “qualifying industrial zone” as any area that:”(1) encompasses portions of the territory of Israel and Jordan or Israel and Egypt; (2) has been designated by local authorities as an enclave where merchandise may enter without payment of duty or excise taxes; and (3) has been designated by the U.S. Trade representative in a notice published in the Federal Register as a qualifying industrial zone.”

By letters dated June 30, 1997 and July 1, 1997, to the U.S. Trade Representative, the Governments of Jordan and Israel, respectively, requested the designation of the industrial zone in Irbid, Jordan, as a QIZ. Pursuant to subsequent consultations among the three Governments, the Governments of Israel and Jordan entered into a written agreement dated November 16, 1997, relating to the establishment of the Irbid QIZ, which included the following provision, entitled “Rules of Origin”:

The [Governments of Israel and Jordan] agree that the origin of any textile or apparel product that is processed in the Irbid Qualifying Zone, regardless of the origin or place of processing of any of its inputs or materials prior to entry into, or subsequent withdrawal from, the zone, will be determined solely pursuant to the rules of origin for textile and apparel products set out in Section 334 of Uruguay Rounds Act, 19 U.S.C.§ 3592.

By notice published in the Federal Register on March 13, 1998 (63 FR 12572), the Office of the U.S. Trade Representative formally designated the Israeli-Jordanian Irbid Qualifying Industrial Zone as a QIZ. Treasury Decision 98-62, published in the Federal Register on June 26, 1998 (63 FR 34960), determined that pursuant to the agreement between the Governments of Israel and Jordan, and by mutual consent of the U.S. and Israel, Customs will exclusively apply the textile and apparel rules of origin set forth in 19 C.F.R. §102.21 in determining the country of origin of a textile or apparel product processed in the Irbid QIZ.

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

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 garment is not knit to shape and consists of two or more parts. As all of the assembly operations except for minor attachments and minor embellishments occur in Jordan, the garment is considered “wholly assembled” in a single country, that is, Jordan. As per the terms of the tariff shift requirement, country of origin is conferred in Jordan.

STATUS UNDER THE UNITED STATES - ISRAEL FREE TRADE AGREEMENT:

Pursuant to the authority conferred by section 9 of the U.S. - Israel Free Trade Area Implementation Act of 1985 (19 U.S.C § 2112 note), the President issued Proclamation No. 6955 dated November 13, 1996 (published in the Federal Register on November 18, 1996 (61 Fed. Reg. 58761)), which modified the Harmonized Tariff Schedule of the United States (HTSUS) (by creating a new General Note 3 (a)(v)) to provide duty-free treatment to articles which are the product of the West Bank, Gaza Strip or a qualifying industrial zone, provided certain requirements are met. Such treatment was effective for products of the West Bank, Gaza Strip or a qualifying industrial zone entered or withdrawn from warehouse for consumption on or after November 21, 1996.

Under General Note 8, HTSUS, products of a qualifying industrial zone (QIZ) are eligible, when imported into the United States, for the “special” rate of duty set forth in the tariff schedule if the article is imported directly from the QIZ into the customs territory of the United States and if all other statutory requirements are met. The “special” duty rate for the three submitted garments under consideration is Free.

HOLDING:

The country of origin of the submitted garment is Jordan. Based upon international textile trade agreements, products of Jordan are not presently 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 Bruce Kirschner at 646-733-3048.

Sincerely,

Robert B. Swierupski
Director,

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