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NY K81834




December 15, 2003
CLA-2-61:RR:NC:TA:361 K81834

CATEGORY: COUNTRY OF ORIGIN

Mr. Bernard Seah
Corporate Manager
Ghim Li Enterprise (USA) Inc.
501 Seventh Avenue, Suite 509
New York, NY 10018

RE: Country of origin determination for women’s knit shirt; 19 CFR 102.21(c)(4).

Dear Mr. Seah:

This is in reply to your letter dated December 4, 2003, requesting a country of origin determination for style 6A704, a woman’s short sleeve shirt.

FACTS:

The submitted garment is a knit shirt with a partial a Henley styled collar, a partial placket opening with a button closure, short sleeves with rib knit cuffs, and a plain, hemmed bottom. The fabric used in the production of the shirt is 100 percent cotton, and has more than ten stitches per centimeter in both the horizontal and vertical directions.

You have indicated that the shirt may be made under one of the following production plans.

PRODUCTION PLAN I

Country A
Pattern Making and Marking
Fabric is cut into component parts
Embroidery on front panel
Placket is formed and attached to front panel Button holes are sewn onto the placket
Collar is attached*

Country B
Front and back panels are joined at the shoulder seams Main and care labels are inserted at the back of the neck Cuffs are attached to sleeves; sleeves are attached to body Buttons are sewn onto placket
Front and back panels are hemmed
Side seams are attached
Trimming, inspection, packing for export

PRODUCTION PLAN II

Country A
Pattern Making and Marking
Fabric is cut into component parts
Embroidery on front panel
Placket is formed and attached to front panel Button holes are sewn onto the placket
Collar is attached*
Front and back panels are joined at the shoulder seams

Country B
Main and care labels are inserted at the back of the neck Cuffs are attached to sleeves; sleeves are attached to body Buttons are sewn onto placket
Front and back panels are hemmed
Side seams are attached
Trimming, inspection, packing for export
*Neither of the production plans mention the attachment of the collar, however, based on the submitted partially completed garment, the collar was attached in country A.

ISSUE:

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

CLASSIFICATION:

The applicable subheading for the garment will be 6106.10.0010, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for Women’sshirts, knitted or crocheted: Of cotton. The general rate of duty is 19.8% ad valorem. Effective January 1, 2004, the rate of duty will be 19.7% ad valorem.

The garment 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 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 garment is not wholly obtained or produced in a single country, territory or insular possession, paragraph (c)(1) of Section 102.21 is inapplicable under all production plans.

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. If the good is not knit to shape and does not consist of two or more component parts, a change to heading 6101 through 6117 from any heading outside that group, except from heading 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408, 5512 through 5516, 5806, 5809 through 5811, 5903, 5906 through 5907, and 6001 through 6002, and subheading 6307.90, and provided that the change is the result of a fabric-making process. 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.

The subject style will be classified within the above noted range, specifically in heading 6106. The garment consists of two or more components and the components are not knit to shape. As the garment is not wholly assembled in a single country, the terms of the tariff shift are not met under any of the production plans.

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, 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".

Under Production Plan 1 the most important assembly operations occur where the front and back panels are joined at the shoulder seams, the cuffs are attached to the sleeves, the sleeves are attached to the body, and the side seams are attached. Accordingly, the country of origin is Country B, the country in which these operations occur.

Under Production Plan 2, the most important assembly operations occur where the placket is formed and attached to the front panel, the front and back panels are joined a the shoulder seams, and the collar is attached. Accordingly, the country of origin is Country A, the country in which these operations occur.

HOLDING:

The country of origin for the shirt under production plan 1 is Country B, and under production plan 2 is country A. Based upon international textile trade agreements products of countries A and B may be 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 Angela De Gaetano at 646-733-3052.

Sincerely,

Robert B. Swierupski
Director,

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