United States International Trade Commision Rulings And Harmonized Tariff Schedule
faqs.org  Rulings By Number  Rulings By Category  Tariff Numbers
faqs.org > Rulings and Tariffs Home > Rulings By Number > 2004 NY Rulings > NY K83243 - NY K83286 > NY K83278

Previous Ruling Next Ruling
NY K83278




March 3, 2004

CLA2-61:RR:NC:TA-359:K83278

CATEGORY: CLASSIFICATION

Mr. Bernard Seah
C/O Ms. Alyssa Tan or Ms. Sharon Lim
Ghim Li Enterprise (USA), Inc.
501 Seventh Avenue, Suite 509
New York, New York 10018

RE: Classification and country of origin determination for women’s knitwear; 19 CFR 102.21(c)(2) and (c)(4)

Dear Mr. Seah:

This is in reply to your letter dated February 18, 2004, requesting a classification and country of origin determination for women’s knitwear that will be imported into the United States. The sample that you submitted is returned, as requested.

FACTS:

The subject merchandise consists of Style 7A 701, a woman’s knitted pullover with short sleeves, which has a fiber content of 100% cotton. The rib knit fabric of the pullover has more than nine stitches per two centimeters, measured in the direction in which the stitches are formed. The pullover features a v-neck with a contrast color rib knit neckband sewn to it; short, hemmed sleeves; a hemmed bottom; and two narrow strips of overlaid fabric that are sewn horizontally across each sleeve. You also submitted the unfinished components of this sample: -the back panel
-the front panel with the neckband partially sewn to it -the two sleeve panels with two overlaid fabric strips sewn to each panel. Your intention is to illustrate the condition of the unfinished pullover after it is processed in the first country.

The manufacturing operations for the woman’s knitted pullover, according to the two production plans that you submitted, are as follows:

Under Production Plan I
In Country A
-make and mark the pattern
-cut the fabric into component panels and parts -embroider the chest and the bottom left front panel NOTE WELL: the embroidery feature does not appear on the sample that you submitted but it does appear on your sketch -sew the overlaid fabric strips to the sleeves -partially sew the rib knit neckband to the neck;

In Country B
-sew the front and back panels at the shoulder seams -attach the labels
-sew the sleeves to the body
-sew the side seams
-hem the bottom
-inspect and pack the garment
NOTE WELL: although it is not stated in your inquiry, we presume that the final sewing of the neckband to the body also occurs in Country B;

Under Production Plan II
In Country A
-make and mark the pattern
-cut the fabric into component panels and parts -embroider the chest and the bottom left front panel NOTE WELL: the embroidery feature does not appear on the sample that you submitted but it does appear on your sketch -sew the overlaid fabric strips to the sleeves;

In Country B
-sew the front and back panels at the shoulder seams -sew the rib knit neckband to the neck
-attach the labels
-sew the sleeves to the body
-sew the side seams
-hem the bottom
-inspect and pack the garment.

ISSUE:

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

CLASSIFICATION:

The applicable subheading for the woman’s knitted pullover, Style 7A 701, will be 6110.20.2075, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for sweaters, pullovers --- and similar articles, knitted or crocheted: of cotton: other: other: other: women’s. The rate of duty will be 16.5% 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 heading 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)(4) defines “major parts” as follows: The term “major parts” means integral components of a good but does not include collars, cuffs, waistbands, plackets, pockets, linings, paddings, accessories, or similar parts.

Paragraph (b)(6) defines the term “wholly assembled”: 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 undergo a change from component parts to a finished product and that the change must be the result of the assembly taking place wholly in a single country, territory or insular possession. Under your Production Plan II, the pullover, which is not knit to shape but which does undergo a classification change from parts of heading 6117 to the finished good of heading 6110, and which is wholly assembled in a single country, namely in Country B, thereby conforming to the terms of the tariff shift, has as its country of origin Country B. However, under your Production Plan I, the pullover is not wholly assembled in a single country, territory or insular possession. Accordingly, as the tariff shift does not take place, the pullover does not qualify and Section 102.21(c)(2) is inapplicable. We, therefore, must continue to seek a determination of the country of origin for the pullover under Production Plan I.

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".

In the case of the subject merchandise, that is, of the pullover, Style 7A 701, according to your Production Plan I, the following constitute the most important assembly processes: -the sewing of the front and back panels at the shoulder seams -the sewing of the sleeves to the body and -the sewing of the side seams, all of which occur in Country B.
Accordingly, the country of origin of the pullover, Style 7A 701, under Production Plan I, is Country B.

HOLDING:

The country of origin of the pullover, Style 7A 701, under Production Plan II, is Country B, Customs Regulations, Section 102.21(c)(2). The country of origin of the pullover, Style 7A 701, under Production Plan I is Country B, Customs Regulations, Section 102.21(c)(4). Based upon international textile trade agreements products of Country 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 Mike Crowley at 646-733-3049.

Sincerely,

Robert B. Swierupski
Director,

Previous Ruling Next Ruling

See also: