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NY J84580




June 18, 2003

CLA2-61:RR:NC:TA-359:J84580

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-4, a woman’s knitted pullover with long sleeves and a turtleneck. The fabric of the pullover is an allover variable rib knit that has more than nine stitches per two centimeters, measured in the direction in which the stitches are formed. The 3/8th inch high bottom of the pullover and the ends of the two sleeves are constructed of 2X2 rib knit fabric. The fiber content of the pullover is 100% cotton.

You also submitted the components from which the pullover is made. These consist of: Back Panel
-self-start bottom
-self-finished sides
-armholes contoured to shape during the knitting process - -clear but non-continuous lines of demarcation at the neckline

Front Panel
-same as back panel

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

Narrow Strip of Fabric for Turtleneck.

The manufacturing operations for the pullover are as follows: In Hong Kong
-knit component parts

In China
-assemble pullover by looping and linking.

For the purpose of determining the country of origin of this pullover, the front, back and sleeve panels are all considered knit-to-shape component panels by virtue of their self-start ends or bottoms, their self-finished sides and their contoured shapes around the armholes which were made during the knitting process. Thus, the pullover is considered a knit-to-shape garment.

ISSUE:

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

CLASSIFICATION:

The applicable subheading for the woman’s knitted pullover, Style W-4, 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 pullover 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 that group, that is, from the component panels of heading 6117 to the pullover of heading 6110. Accordingly, as the pullover 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
(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 or crocheted 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, territory or insular possession, namely in Hong Kong, Section 102.21(c)(3) does pertain.

HOLDING:

The country of origin of the woman’s knitted pullover, Style W-4, 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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