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NY J83466




May 28, 2003

CLA2-61: RR:NC: TA-359: J83466

CATEGORY: CLASSIFICATION

Messrs. Arthur W. Bodek and David S. Levy Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt, LLP 245 Park Avenue, 33rd Floor
New York, New York 10167-3397

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

Dear Messrs. Bodek and Levy:

This is in reply to your letter dated April 22, 2003, submitted on behalf of your client, Liz Claiborne, Inc., requesting a classification and country of origin determination for woman’s knitwear which will be imported into the United States. Your samples are returned as requested.

FACTS: The subject merchandise consists of a woman’s knitted cardigan sweater that features a full-front opening with a zipper closure, long sleeves, a deep v-shaped neckline and a small rib knit bottom at the front. The neckline and the front placket are covered with a woven strip of capping. Decorative appliques in the form of patches of woven fabric are sewn into one large appliqued patch on each side of the front of the cardigan sweater, which in turn are sewn over the front panels as a cover for them. Parts of the two patches are additionally decorated with embroidery, beading and textile yarns. The cardigan sweater is constructed from two fabrics: the rear and the sleeves consist of 2X2 rib knit, while the front is jersey knit. Both fabrics have nine or fewer stitches per two centimeters, measured in the direction in which the stitches are formed. The style number is CHMU 5473 and the fiber content is 100% cotton.

You also submitted the components from which the cardigan sweater is constructed: Back panel -self-start bottom
-self-finished sides
-armholes and neckline contoured to shape during the knitting process

Front panel
-self-start bottom
-self-finished sides
-armholes contoured to shape during the knitting process -clear and continuous line of demarcation at the neckline (Note: there is no vertical line of demarcation running down the entire front in evidence on the submitted panel)

Sleeve panels
-self-start ends
-self-finished sides
-contoured to shape during the knitting process at point of joining to body

Narrow strips of fabric for capping.

For the purpose of determining the country of origin of the cardigan sweater, we note that all of the component panels (the “major parts”), that is the front, back and sleeve panels, are considered knit to shape.

The manufacturing operations for the cardigan sweater are as follows: In Swaziland
-all panels knit

In China
-appliqued fabric patches woven and cut to shape -cut front panel in half to form left and right front -sew woven patches to front panels
-assemble panels by linking
-sew capping to neck and front placket.

ISSUE:

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

CLASSIFICATION:

The applicable subheading for the woman’s knitted cardigan sweater, Style CHMU 5473, will be 6110.20.2020, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for sweaters, pullovers --- and similar articles, knitted or crocheted: of cotton: other: other: sweaters: woman’s. The rate of duty will be 16.9% ad valorem.

The cardigan sweater falls within textile category designation 345. 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 Textile Status Report for Absolute Quotas, which is available at our Web site at www.cbp.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 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 to shape in a single country, territory or insular possession

Section 102.21(e) states that, for knit-to-shape garments, the tariff change must occur to heading 6101 through 6117 from a heading outside that grouping. However, in this instance, the tariff change occurs within that grouping, that is, from the component panels of heading 6117 to the sweater of 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":

(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.

Section 102.21 (b) states:
Knit to Shape: The term “knit to shape” applies to any good of which 50% or more of the exterior surface area is formed by major parts that have been knitted or crocheted directly to the shape used in the good, with no consideration being given to patch pockets, appliques, or the like. Major Parts: The term “major parts” means integral components of a good but does not include collars, cuffs, waistbands, plackets, pockets, linings, paddings, trim, accessories or similar items.

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

HOLDING:

The country of origin of the woman’s knitted cardigan sweater, Style CHMU 5473, is Swaziland. Based upon international textile trade agreements this product of Swaziland is subject to the restraints of quota but not to 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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