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NY K83929





March 29, 2004

CLA2-61:RR:NC:TA-359:K83929

CATEGORY: CLASSIFICATION

Mr. Bernard Seah
Corporate Manager
C/O 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)(4)

Dear Mr. Seah:

This is in reply to your letter dated March 4, 2004, requesting a classification and country of origin determination for women’s knitwear that will be imported into the United States. The sample is returned, as requested.

FACTS:

The subject merchandise consists of Style WS 512298, a woman’s knitted pullover that is composed 60% cotton, 40% polyester fibers. The 1X1 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 extends from the neck and shoulders of the wearer to the top of her thighs. The garment features ¾-length, hemmed sleeves; a neckline that is round in the rear and that extends around the neck to the front where it forms a v-shaped opening that has no closure; a hemmed bottom; two 4-inch high side slits at the bottom; a half-moon fabric overlay (“sweat patch”) that is found on the inside of the rear neckline; a self-fabric facing on the inside of the v-shaped neckline; and decorative embroidery that is sewn in the front on the bottom and at the end of each sleeve. The component panels and parts consist of (1) the embroidered front panel; (2) the back panel; (3) the two embroidered sleeve panels; and (4) the neck facing and the sweat patch sewn together.

The manufacturing operations for the woman’s knitted pullover are as follows: In Country A
-make and mark pattern
-cut fabric into component panels and parts -embroider front panel and sleeve ends
-construct neck facing (that is, fuse the knitted strips to the non-woven interfacing) and sew the resulting fabric strip to the half-moon fabric overlay that is used as the “sweat patch”;

In Country B
-sew neck facing to inside front panel and sew half-moon fabric overlay (the “sweat patch”) to rear panel with labels attached -sew front and back panels at shoulder seams -hem bottom
-sew side seams
-construct side slits
-construct and hem sleeves
-sew sleeves to body
-inspect and pack 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 WS 512298, 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 duty rate will be16.5% 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. Noting the production information that you submitted, the pullover is not wholly assembled in a single country, territory or insular possession. Accordingly, as the pullover does not qualify for 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, the following constitute the most important assembly processes: -the sewing of the neck facing to the inside front panel and the sewing of the half-moon fabric overlay (the “sweat patch”) to the rear panel -the sewing of the front and back panels at the shoulder seams -the sewing of the side seams, and
-the sewing of the sleeves to the body, all of which occur in Country B.
Accordingly, the country of origin of the woman’s knitted pullover, Style WS 512298, is Country B.

HOLDING:

The country of origin of the woman’s knitted pullover, Style WS 512298, is Country B. 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,

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