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NY K81778




February 3, 2004

CLA2-RR:NC:WA:355 K81778

CATEGORY: CLASSIFICATION

Mr. John A. Schoenig
Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP 399 Park Avenue, 25th flr
New York, NY 10022-4877

RE: Classification and country of origin determination for men’s woven shorts; Products of the West Bank, the Gaza Strip or a qualifying industrial zone; General Note3(a)(V); General Note 8; 19 CFR 102.21(c)(4); T.D. 98-62.

Dear Mr. Schoenig :

This is in reply to your letter dated January 13, 2004, requesting a classification and country of origin determination for men’s woven shorts which will be imported into the United States. This request was made on behalf of Falcon Jordanian International Garments Industries, Inc. You state that the manufacturing operations will occur in China and the Irbid QIZ, Jordan. You provided samples of the garment parts as well as the finished garment.

FACTS:

The subject merchandise consists of boys’ reversible cargo shorts made of 100 percent polyester woven fabric with a 100 percent polyester woven interlining. The garment is identified as style KH10-4KS. The knee-length shorts are fully reversible. With the exception of differing colors, both sides of the reversible cargo shorts are identical in every regard in that they both feature two front pockets, one back pocket, two side pockets set over side seams, an elasticized waistband with belt loops and a hook and loop fabric tape front fly. The samples will be returned as you have requested.

The manufacturing operations for style KH10-4KS are as follows:

CHINA:

The fabric is formed
The fabric is cut into various component parts For both the front layer and the reversible layer, the two back panels are joined at the back rise and the front panels are joined to the back panels at the outer seams; the two front panels are not joined. The front fly is sewn and the hook and loop fabric tape is attached to both the front layer and the reversible layer. The front, back and side pockets are sewn and attached to the front panels, back panels and sides of legs, respectively (both the front layer and the reversible layer) The front layer and the reversible layer are joined at the top of the waistband. The waistband and belt loops are formed and attached (both the front layer and the reversible layer). The brand label is attached.
Bar-tacks are made on pockets and belt loops (both the front layer and the reversible layer).

JORDAN:

The two front panels are joined at the front rise (both the front layer and the reversible layer). The front rise is formed. The inseams of the front and back panels are joined (both the front layer and the reversible layer). Bar-tacks are made on the front fly (both the front layer and the reversible layer). Country of origin label is attached.
The leg bottoms of the front layer and the reversible layer are hemmed together. The garment is trimmed, pressed and packed.

ISSUE:

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

CLASSIFICATION:

The applicable subheading for style KH10-4KS will be 6203.43.4040, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for men’s or boys’ trousers, bib and brace overalls, breeches and shorts, of synthetic fibers, other, other, other, other, shorts, boys’, other. The general rate of duty will be 27.9 percent ad valorem.

Style KH10-4KS falls within textile category designation 647. 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.CUSTOMS.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.

You stated that the processing operations in Jordan were performed in the Irbid Qualifying Industrial Zone (QIZ). General Note 3(a)(v)(G), HTSUS, defines a “qualifying industrial zone” as any area that:”(1) encompasses portions of the territory of Israel and Jordan or Israel and Egypt; (2) has been designated by local authorities as an enclave where merchandise may enter without payment of duty or excise taxes; and (3) has been designated by the U.S. Trade representative in a notice published in the Federal Register as a qualifying industrial zone.”

By letters dated June 30, 1997 and July 1, 1997, to the U.S. Trade Representative, the Governments of Jordan and Israel, respectively, requested the designation of the industrial zone in Irbid, Jordan, as a QIZ. Pursuant to subsequent consultations among the three Governments, the Governments of Israel and Jordan entered into a written agreement dated November 16, 1997, relating to the establishment of the Irbid QIZ, which included the following provision, entitled “Rules of Origin”:

The [Governments of Israel and Jordan] agree that the origin of any textile or apparel product that is processed in the Irbid Qualifying Zone, regardless of the origin or place of processing of any of its inputs or materials prior to entry into, or subsequent withdrawal from, the zone, will be determined solely pursuant to the rules of origin for textile and apparel products set out in Section 334 of Uruguay Rounds Act, 19 U.S.C.§ 3592.

By notice published in the Federal Register on March 13, 1998 (63 FR 12572), the Office of the U.S. Trade Representative formally designated the Israeli-Jordanian Irbid Qualifying Industrial Zone as a QIZ. Treasury Decision 98-62, published in the Federal Register on June 26, 1998 (63 FR 34960), determined that pursuant to the agreement between the Governments of Israel and Jordan, and by mutual consent of the U.S. and Israel, Customs will exclusively apply the textile and apparel rules of origin set forth in 19 C.F.R. §102.21 in determining the country of origin of a textile or apparel product processed in the Irbid QIZ.

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

6201 – 6208 If the good consists of two or more component parts, a change to an assembled good of heading 6201 through 6208 from unassembled components, provided that the change is the result of the good being wholly assembled in a single country, territory or insular possession.

Section 102.21(e) states that the good must by wholly assembled in a single country, territory or insular possession. Accordingly, as style KH10-4KS does not meet this requirement, 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, 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 the subject merchandise, sewing the front rise, joining the two front panels at the front rise, and sewing the inside seams constitute the most important assembly processes. Accordingly, the country of origin of the shorts is Jordan.

STATUS UNDER THE UNITED STATES - ISRAEL FREE TRADE AGREEMENT:

Pursuant to the authority conferred by section 9 of the U.S. - Israel Free Trade Area Implementation Act of 1985 (19 U.S.C § 2112 note), the President issued Proclamation No. 6955 dated November 13, 1996 (published in the Federal Register on November 18, 1996 (61 Fed. Reg. 58761)), which modified the Harmonized Tariff Schedule of the United States (HTSUS) (by creating a new General Note 3 (a)(v)) to provide duty-free treatment to articles which are the product of the West Bank, Gaza Strip or a qualifying industrial zone, provided certain requirements are met. Such treatment was effective for products of the West Bank, Gaza Strip or a qualifying industrial zone entered or withdrawn from warehouse for consumption on or after November 21, 1996.

Under General Note 8, HTSUS, products of a qualifying industrial zone (QIZ) are eligible, when imported into the United States, for the “special” rate of duty set forth in the tariff schedule if the article is imported directly from the QIZ into the customs territory of the United States and if all other statutory requirements are met. The “special” duty rate for the submitted garment under consideration is Free.

HOLDING:

The country of origin of style KH10-4KS is Jordan. Based upon international textile trade agreements, products of Jordan are not presently subject to visa requirements or 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 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 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 Camille R. Ferraro at 646-733-3046.

Sincerely,

Robert B. Swierupski
Director,

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