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NY K80190




November 19, 2003
CLA-2-RR:NC:TA:361 K80190

CATEGORY: CLASSIFICATION

Ms. Stacy Bauman
American Shipping Company Inc.
140 Sylvan Avenue
Englewood Cliffs, NJ 07632

RE: Classification and country of origin determination for a woman’s knit shirt; duty-free treatment for products of the under the United States-Jordan Free Trade Area Implementation Act; General Note 18; 19 C.F.R. §102.21(c)(4)

Dear Ms. Bauman:

This is in reply to your letter dated October 28, 2003, submitted on behalf of Dress Barn Inc. Your request concerns the classification, country of origin determination and eligibility for preferential duty treatment for a garment that may be produced in Jordan.

FACTS:

The shirt, style 8321, is constructed from 65 percent polyester, 35 percent cotton knit fabric with more than ten stitches per centimeter in both the horizontal and vertical directions. The shirt has a rounded neckline, short sleeves, a full front opening with a right-over-left button closure, and a plain, hemmed bottom. The shirt also has shoulder pads.

You have provided two possible scenarios for the production of the shirt, as follows:

Scenario A
Fabric will be made in Taiwan
Foam for shoulder pads will be made in Taiwan Fabric covering for shoulder pads will be made in Taiwan Foam will be cut to shape in Taiwan
All of the above items will be imported into Jordan, where the fabric will be cut and assembled

Scenario B
Fabric will be made in Taiwan
Foam for shoulder pads will be made in Taiwan Fabric covering for shoulder pads will be made in Taiwan Foam will be cut to shape in Taiwan
Fabric covering for the shoulder pads will be cut to shape, and the shoulder pads fully assembled in Taiwan All of the above items will be imported into Jordan, where the fabric will be cut and the shirt assembled

ISSUE:

What are the classification, country of origin and status under the United States-Jordan Free Trade Area Implementation Act of the subject merchandise?

CLASSIFICATION:

The applicable subheading for the shirt will be 6106.20.2010, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for Women’sshirts and blouses, knitted or crocheted: Of man-made fibers. The general rate of duty is 32.3% ad valorem.

The shirt falls within textile category designation 639. 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 U.S. Customs Service Textile Status Report, an internal issuance of the U.S. Customs Service, which is available at the Customs 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 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.

The subject garments will be classified within the above noted range, in heading 6106. The garment consists of two or more components. Under both scenarios, the garment is wholly assembled in a single country, therefore the terms of the tariff shift are met and the country of origin is Jordan.

STATUS UNDER THE UNITED STATES-JORDAN FREE TRADE AREA IMPLEMENTATION ACT:

Title I of the United States-Jordan Free Trade Area Implementation Act of 2001, Pub. L. No. 107-43, 115 Stat. 243., referred to as the Jordan Free Trade Area Implementation Act, seeks to promote trade opportunities between the U.S. and the Hashemite Kingdom of Jordan. The JFTA provides preferential treatment for eligible apparel articles that: are the growth, product, or manufacture of Jordan; meet the 35 percent value content requirement; and are imported directly into the U.S. The rules for determining whether an article is entitled to preferential treatment under the JFTA are provided for in General Note (GN) 18, to the HTSUSA, as implemented by Presidential Proclamation 7512, dated December 7, 2001, 66 Fed. Reg. 64495, December 13, 2001.

GN 18 provides, in part, as follows:

(a) The products of Jordan described in Annex 2.1 of the Agreement between the United States of America and the Hashemite Kingdom of Jordan on the Establishment of a Free Trade Area, entered into on October 24, 2000, are subject to duty as provided herein. Products of Jordan, as defined in subdivisions (b) through (d) of this note, that are imported into the customs territory of the United States and entered under a provision for which a rate of duty appears in the "Special" subcolumn followed by the "JO" in parentheses are eligible for the tariff treatment set forth in the "Special" subcolumn, in accordance with sections 101 and 102 of the United States-Jordan Free Trade Area Implementation Act (Public Law 107-43, 115 Stat. 243).

(b) For purposes of this note, subject to the provisions of subdivisions (d) and (e), goods imported into the customs territory of the United States are eligible for treatment as "products of Jordan" only if – (i) such goods are imported directly from Jordan into the customs territory of the United States, and (A) wholly the growth, product or manufacture of Jordan, or (B) new or different articles of commerce that have been grown, produced or manufactured in Jordan and meet the requirements of subdivision (c) of this note.

(c) * * *(ii) For purposes of subdivision (b)(ii)(B), goods are eligible for the tariff treatment provided in this note if the sum of – (A) the cost or value of the materials produced in Jordan, plus (B) the direct costs of processing operations performed in Jordan, is not less than 35 percent of the appraised value of such article at the time it is entered. If the cost or value of materials produced in the customs territory of the United States is included with respect to an article to which this subdivision applies, an amount not to exceed 15 percent of the appraised value of the article at the time it is entered that is attributable to such United States cost or value may be applied toward determining the percentage referred to in this subdivision

(d) Textile and apparel articles.
For purposes of this note, a textile or apparel article imported directly from Jordan into the Customs territory of the United States shall be eligible for the tariff treatment provided in subdivision (a) of this note only if – (A) the article is wholly obtained or produced in Jordan; (B) the article is a yarn, thread, twine, cordage, rope, cable or braiding, and (i) the constituent staple fibers are spun in Jordan, or (ii) the continuous filament is extruded in Jordan; (C) the article is a fabric, including a fabric classified in chapter 59 of the tariff schedule, and the constituent fibers, filaments or yarns are woven, knitted, needled, tufted, felted, entangled or transformed by any other fabric-making process in Jordan; or (D) the article is any other textile or apparel article that is wholly assembled in Jordan from its component pieces.

Such textile and apparel articles not wholly obtained or produced in Jordan must comply with the requirements of this subdivision and of subdivision (c)(ii) of this note.

The shirt does not meet the terms of GN 18(d)(i)(A) through (C), but it is described in subdivision (D). Thus the terms of GN 18(d)(i)(D) are applicable to this garment, which are assembled in Jordan from Taiwanese and Chinese fabric and components. The term "wholly assembled" as used in subdivision (D) is not defined in the JFTA. However, the term can be found in the Customs rules of origin. As noted above, under the rules of origin, the shirt is considered to be “wholly assembled” in Jordan.

However, even though the garment is wholly assembled in Jordan, it must still meet the terms of subdivision (c)(ii) to GN 18. Subdivision (c)(ii) requires that the sum of the cost or value of the materials produced in Jordan, plus the direct costs of processing operations performed in Jordan, not be less than 35 percent of the appraised value of such articles at the time they are entered. Whether the requirement is satisfied can only be ascertained when the "appraised value" of the garments is determined at the time of entry into the United States.

HOLDING:

Based on the information provided, the shirt will be considered a product of Jordan. Based upon international textile trade agreements products of Jordan currently are not subject to quota and the requirement of a visa. Based on the information provided, and if the garment meets the 35 percent value content requirement, it will be eligible for preferential treatment under the JFTA, provided it is imported directly into the United States.

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 C.F.R. §177.9(b)(1). This sections 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 C.F.R. §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 C.F.R. §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 Angela De Gaetano at 646-733-3052.

Sincerely,

Robert B. Swierupski
Director,

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