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NY J85033




June 25, 2003

CLA-2-RR:NC:TA:N3:356 J85033

CATEGORY: CLASSIFICATION

Mr. Bernard Seah
Corporate Manager
Ghim Li Global Pte. Ltd.
No. 41 Changi South, Avenue 2
Singapore 486153

RE: Classification and country of origin determination for a pair of men’s knit pants; 19 CFR 102.21 (c)(4); most important assembly

Dear Mr. Seah:

This is in reply to your letter dated May 12, 2003, requesting a classification and country of origin determination for a pair of men’s knit pants which will be imported into the United States. You state that two different production plans are being considered. In each production plan, the assembly operations occur in two different countries, designated as Country “A” and Country “B”. Although not stated in your letter, we assume that Countries “A” and “B” denote different foreign countries, territories or insular possessions, and such countries will not include Israel or a signatory of the North American Free Trade Agreement. A sample garment was submitted with your inquiry. As requested, your sample will be returned.

FACTS:

Style 0304070 is a pair of men’s pants constructed from 80 percent cotton, 20 percent polyester, finely knit fabric that is napped on the inside surface. The pants have a rib knit, tunnel elastic waistband with an outside drawcord; side seam pockets; an embroidered patch on the left leg; and tunnel elastic at the ankles.

The manufacturing operations for Production Plan #1 are as follows:

COUNTRY A:

The pattern is made and marked
The fabric is cut into component parts (front left and right legs, rear left and right legs, waisband) The embroidered applique is applied to the front left panel The front rise is sewn
The back rise is sewn
The side pockets are attached

COUNTRY B:

The inseams are sewn
The side seams are sewn
The legs are hemmed with the ankle elastic enclosed The rib knit waistband is attached with the elastic and drawstring enclosed The main and care labels are sewn to the waistband The waistband seams are topstitched
The threads are trimmed and the garments are inspected and packed for export

The manufacturing operations for Production Plan #2 are as follows:

COUNTRY A:

The pattern is made and marked
The fabric is cut into component parts (front left and right legs, rear left and right legs, waisband) The embroidered applique is applied to the front left panel The front rise is sewn
The back rise is sewn
The side pockets are attached
The waistband is formed and the elastic and drawstring are enclosed

COUNTRY B:

The legs are hemmed with the ankle elastic enclosed The side seams are sewn
The inseams are sewn
The rib knit waistband is attached
The main and care labels are sewn to the waistband The waistband seams are topstitched
The threads are trimmed and the garments are inspected and packed for export

ISSUE:

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

CLASSIFICATION:

The applicable subheading for Style 0304070 is in 6103.42.1020, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for men’s or boys’ trousers, , knitted or crocheted: , of cotton: trousers and breeches: men's. The rate of duty will be 16.2 percent ad valorem.

The garment falls within textile category designation 347. 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.cpb.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

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.

Although the garment is not knit to shape and consists of two or more component parts, it is not wholly assembled in a single country, territory or insular possession. Accordingly, as the terms of the tariff shift are not met, 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”:

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

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.

Since the garment is neither knit 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 Production Plans # 1 and #2, the assembly processes in Country “B” consisting of the joining of the side seams, the joining of the inseams, and the attachment of the waistband constitute the most important assembly processes.

Accordingly, under Section 102.21 (c)(4), the country of origin of Style 0304070 under Production Plan #1 and Production Plan #2 is Country “B”, the country in which the most important assembly processes occur.

HOLDING:

The country of origin of Style 0304070 in Production Plan #1 and Production Plan #2 is Country “B”. Based upon international textile trade agreements, products of Country “B” may be subject to visa requirements and 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 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 Mary Ryan at 646-733-3271.

Sincerely,

Robert B. Swierupski
Director,

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