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NY J80777




March 10, 2003

CLA2-61:RR:NC:TA-359:J80777

Ms. Brenda A. Jacobs
Sidley, Austin, Brown & Wood
1501 K Street, N.W.
Washington, D.C. 20005

RE: Classification and country of origin determination for women’s knitwear; 19 CFR 102.21(c)(4)

Dear Ms. Jacobs:

This is in reply to your letter dated February 6, 2003, on behalf of Hoi Meng Garment Manufacturing, Ltd., Macau, requesting a classification and country of origin determination for women’s knitwear that will be imported into the United States. Your sample is returned, as requested.

FACTS:

The subject merchandise consists of a woman’s knitted cardigan, Style 86241, Manufacturer’s Style 460D DAKOTA, consisting of 84% polyamide, 16% spandex fibers. The cardigan has a full-front opening with a zipper closure, an attached hood with a drawstring closure, long sleeves with hemmed cuffs, two side pockets at the waist and a hemmed bottom. Each one of the two front panels is itself composed of two separate fabric strips that are sewn together; while the back panel is composed of three separate fabric strips that are sewn together. The knitted fabric of the cardigan has more than nine stitches per two centimeters, measured in the direction in which the stitches are formed. The fabric is slightly brushed on the outside.

The manufacturing operations for the cardigan are as follows:

In Country A
-cut fabric into component panels
-sew two fabric strips which make the front panels on each side of the cardigan -sew three fabric strips which make the back panel

In Country B
-sew front and back panels at shoulder seams -sew sleeves to body
-sew side seams and underarm seams

In Country A
-construct hood and sew to body
-sew front placket and zipper to body
-sew zipper to side pockets
-hem sleeve ends and bottom.

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 6110.30.3055, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for sweaters, pullovers ---and similar articles, knitted or crocheted: of man-made fibers: other: other: other: other: other: women’s. The rate of duty will be 32.2 % ad valorem.

The cardigan falls within textile category designation 639. 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

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 good must be the result of the good being wholly assembled in a single country, territory or insular possession. Under your production plan the assembly process occurs in more than one country and 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, the following constitute the most important assembly or manufacturing processes:

-the sewing of the front and back panels at the shoulder seams -the sewing of the sleeves to the body and -the sewing of the side seams and the underarm seams, all of which occur in Country B.

Accordingly, the country of origin of the woman’s knitted cardigan, Style 86241, Manufacturer’s Style 460D DAKOTA, is Country B.

HOLDING:

The country of origin of the woman’s knitted cardigan 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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