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NY J87144




September 16, 2003

CLA2-61:RR:NC:TA-359:J87144

CATEGORY: CLASSIFICATION

Mr. Tom Gould
Zisser Customs Law Group
2297 Niels Bohr Court, Suite 114
San Diego, California 92154

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

Dear Mr. Gould:

This is in reply to your letter dated August 12, 2003, which you submitted on behalf of your client, Fortune Casuals, LLC, 1936 Mateo St., Los Angeles, California, 90021, and which requested a tariff classification and country of origin determination for women’s knitwear which will be imported into the United States. The sample is returned as requested.

FACTS:

The subject merchandise is Style 14 JA 201, a woman’s, sleeveless knitted pullover which has raglan shoulders and a round, rib knit neckband. The armholes and the bottom of the pullover are only finished with overlock stitching. The jersey knit fabric of the body of the pullover has more than nine stitches per two centimeters, measured in the direction in which the stitches are formed. The fiber content of the pullover is 100% cotton. You submitted this sample in three versions. These are (1) the finished sleeveless pullover; (2) the separate parts which make up the pullover, that is, the back and front panels; the two small panels of the raglan shoulders; and the fabric strip for the neckband; and (3) the partially assembled pullover that is shipped from the first processing country, which is China, to the second, which is Russia, according to your Scenario II.

The manufacturing operations for the pullover, Style 14 JA 201, which you present in three different scenarios, are as follows: Under Scenario I
In China
-knit fabric
-cut fabric into component parts
-sew raglan shoulders to back panel

In Russia
-sew raglan shoulders to front panel
-construct neckband
-sew neckband to front and back panels
-sew overlock stitching to armholes
-sew side seams
-sew overlock stitching to bottom;

Under Scenario II
In China
-knit fabric
-cut fabric into component parts
-sew raglan shoulders to front and back panels

In Russia
-construct neckband
-sew neckband to front and back panels
-sew overlock stitching to armholes
-sew side seams
-sew overlock stitching to bottom;

Under Scenario III
In China
-knit fabric
-cut fabric into component parts
-sew raglan shoulders to front and back panels -construct neckband
-sew neckband to front and back panels
-sew overlock stitching to armholes

In Russia
-sew side seams
-sew overlock stitching to bottom.

ISSUE:

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

CLASSIFICATION:

The applicable subheading for woman’s knitted pullover, Style 14 JA 201, will be 6110.20.2075, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for sweaters, pullovers --- 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:

Section 334 of the Uruguay Round Agreements Act (codified at 19 U.S.C. 3592), enacted on December 8, 1994, provided rules of origin for textiles and apparel entered, or withdrawn from warehouse for consumption, on and after July 1, 1996. Section 102.21, Customs Regulations (19 C.F.R. 102.21), published September 5, 1995, in the Federal Register, implements Section 334 (60 FR 46188). Section 334 of the URAA was amended by section 405 of the Trade and Development Act of 2000, enacted on May 18, 2000, and accordingly, section 102.21 was amended (68 Fed. Reg. 8711). Thus, the country of origin of a textile or apparel product shall be determined by the 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 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.

Paragraph (b) (6) defines “wholly assembled” as:

The term “wholly assembled” when used with reference to a good means that all components, of which there must be at least two, pre-existed in essentially the same condition as found in the finished good and were combined to form the finished good in a single country, territory or insular possession. Minor attachments and minor embellishments (for example, appliques, beads, spangles, embroidery, buttons) not appreciably affecting the identity of the good, and minor subassemblies (for example, collars, cuffs, plackets, pockets) will not affect the status of a good as “wholly assembled” in a single country, territory or insular possession. *

Section 102.21(e) states that the good must be assembled in a single country, territory or insular possession. However the pullover is assembled in two countries under each of the three scenarios that you presented. Accordingly, as the pullover does not satisfy the conditions 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; 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, territory or insular possession, 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 woman’s knitted pullover, Style 14 JA 201, under each of the three scenarios that you presented, the following constitute the most important assembly processes: Under Scenario I
-the sewing of the raglan shoulders to the front panel -the sewing of the neckband to the front and back panels and -the sewing of the side seams, all of which occur in Russia;

Under Scenario II
-the sewing of the neckband to the front and back panels and -the sewing of the side seams, both of which occur in Russia;

Under Scenario III
-the sewing of the raglan shoulders to the front and back panels and -the sewing of the neckband to the front and back panels, both of which occur in China.

Accordingly, the country of origin for the woman’s knit, sleeveless pullover, Style 14 JA 201, under scenarios I and II, is Russia. Under scenario III, it is China.

HOLDING:

The country of origin of the pullover, under scenarios I and II, is Russia. The country of origin of the pullover, under scenario III, is China. Based upon international textile trade agreements products of Russia are not subject to quota or the requirement of a visa; products of China 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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