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NY J84578




June 20, 2003

CLA2-61:RR:NC:TA-359:J84578

CATEGORY: CLASSIFICATION

Ms. Karanda Ho
Loueny Knitters, Inc.
250 West Beaver Creek Road, Unit 8
Richmond Hill, Ontario, Canada L4B 1C7

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

Dear Ms Ho:

This is in reply to your letter dated May 13, 2003, 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 Style W-2, a woman’s knitted cardigan, similar to a sweater, which has long sleeves, a v-shaped neckline and a full-front opening with seven button closures. The fabric of the cardigan is made from an allover 1X1 rib knit structure which has more than nine stitches per two centimeters, measured in the direction in which the stitches are formed. The fiber content of the cardigan is 100% cotton.

You have also submitted the component panels and parts from which the cardigan is formed. These are Front Panel
-self-start bottom
-self-finished sides
-armholes contoured to shape during the knitting process -neckline has a clear and continuous line of demarcation that is formed by a change in the knit stitch pattern -vertical line of demarcation extending down entire front to indicate separation point for the two halves of the cardigan

Back Panel
-self-start bottom
-self-finished sides
-armholes contoured to shape during the knitting process -neckline has a clear but non-continuous line of demarcation formed by a partial change in the knit stitch pattern

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

Strips of Narrow Fabric Trim for Front Placket and Neckline.

The manufacturing operations for the cardigan are as follows: In Hong Kong
-knit front, back and sleeve panels

In China
-assemble panels by linking.

For the purpose of determining the country of origin of the cardigan, the front panel is considered knit to shape by virtue of its self-start bottom, self-finished sides, contoured armholes and its neckline with a clear and continuous line of demarcation. The back panel is considered knit to shape because of its self-start bottom, self-finished sides and contoured armholes. The sleeve panels are considered knit to shape because of their self-start ends, self-finished sides and contoured armholes. Further, the front, back and sleeve panels, considered together, constitute more than 50 percent of the total surface area of the cardigan.

ISSUE:

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

CLASSIFICATION:

The applicable subheading for the women’s knitted cardigan, Style W-2, 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 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 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 group. In this instance however, the tariff change occurs within the designated group, that is, from the component panels of heading 6117 to the cardigan of heading 6110. Accordingly, as the cardigan does not fulfill the terms of 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.

Section 102.21(b) states that
(3) 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 directly to the shape used in the good, with no consideration being given to patch pockets, appliques or the like. Minor cutting, trimming or sewing of those major parts will not affect the determination of whether the good is knit to shape.

(4) 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 parts.

As the subject merchandise is knit to shape 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, Style W-2, 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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