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NY K85000




April 29, 2004

CLA2-RR:NC:N3:360 K85000

CATEGORY: CLASSIFICATION

Mr. Rodney Ralston
UPS Supply Chain Solutions
One Trans-Border Drive
Champlain, NY 12919

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

Dear Mr. Ralston:

This is in reply to your letter dated April 2, 2004, on behalf of Maillot Baltex Inc., requesting a classification, marking and country of origin determination for women’s pareos which will be imported into the United States.

FACTS:

The subject merchandise consists of a women’s pareo made of 100 percent cotton woven fabric. The item is a rectangular piece of cloth that is approximately 45 inches by 62 inches and is used as a cover-up or wrap around skirt. The fabric is formed in Korea and is sent in rolls to the United States where the material is bleached, shrunk, dyed, printed and finished. The finished fabric is then sent to Canada where it is inspected, cut to size, hemmed and packed (either on a hanger or in a plastic bag) for shipment to the United States.

ISSUE:

What are the classification, marking requirements and country of origin of the subject merchandise?

CLASSIFICATION:

The applicable subheading for style AJ128 will be 6211.42.0081, Harmonized Tariff Schedule of the United States (HTS), which provides for track suits, ski-suits and swimwear; other garments: other garments, women’s or girls’: of cotton: other. The rate of duty will be 8.1 percent ad valorem. Style AJ128 falls within textile category designation 359. 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at 19 U.S.C. 3592), enacted on December 8, 1994, provided rules of origin for textiles and apparel entered, or withdrawn from warehouse for consumption, on and after July 1, 1996.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

6210-6212 (1) If the good consists of two or more component parts, a change to an assembled good of heading 6210-6212 from unassembled components, provided that the change is the result of the good being wholly assembled in a single country, territory, or insular possession.

(2) If the good does not consist of two or more component parts, a change to heading 6210 through 6212 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, 5602 through 5603, 5801 through 5806, 5809 through 5811, 5903, 5906 through 5907, 6001 through 6002, and the subheading 6307.90, and provided that the change is the result of a fabric-making process.

The subject merchandise is classified as an other women's garment under heading 6211, HTS. As the garment consists of one component part, a rectangular piece of fabric, the first tariff shift rule is inapplicable. The second tariff shift rule is also inapplicable since the change to heading 6211 results from a change from heading 5208 which is specifically excluded from the tariff shift provision. 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.

Section 102.21(b)(6) defines "wholly assembled" as:

The term "wholly assembled" when used with reference to a good means that all components, of which there must be at least two, preexisted 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.

The subject pareo is not knit and therefore provision (I) of Section 102.21(c)(3) is not applicable. Provision (ii) of Section 102.21(c)(3) is also not applicable because the subject pareo does not meet the definition of "wholly assembled", which requires that the good consist of at least two components.

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 pareo, the most important assembly process occurs at the time of the fabric making. Accordingly, the country of origin of the pareo is Korea.

MARKING:

You have also requested a ruling on whether the pareo should be marked to indicate that it is a product of either Canada or of the U.S. This marking would appear on a sewn on label.

The marking statute, Section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless excepted, every article of foreign origin (or its container) imported into the U.S. shall be marked in a conspicuous place as legibly, indelibly and permanently as the nature of the article (or its container) will permit, in such a manner as to indicate to the ultimate purchaser in the U.S. the English name of the country of origin of the article.

The origin rules indicate that the country of origin of the finished pareo is Korea, the country where the fabric was formed by a fabric-making process. The proposed marking of product of either Canada or the U.S. is not an acceptable country of origin marking for the finished pareo. The origin rules indicate that the country of origin of the finished pareo is Korea, where the fabric for the item was formed. Since the proposed marking is in direct conflict with the origin determination made pursuant to Section 102.21, it does not satisfy the marking requirements of 19 U.S.C. 1304 and, thus, is not acceptable country of origin marking for the pareo.

It should also be noted that textile fiber products imported into the U.S. must be labeled in accordance with the Textile Fiber Products Identification Act (15 U.S.C. 70 through 70k) and the rules promulgated thereunder by the Federal Trade Commission. These rules concern required information such as country of origin, fiber content and the placement of that information. Therefore, we suggest that you contact the Federal Trade Commission, Textile Program, Division of Enforcement, Bureau of Consumer Protection, 600 Pennsylvania Avenue, N.W., Washington, D.C., 20580, for information on the applicability of these requirements to the submitted items. You have also asked about care labeling. Questions concerning care labeling regulations should also be addressed to the Federal Trade Commission.

HOLDING:

The country of origin of the pareo is Korea. Based upon international textile trade agreements products of Korea are 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 Patricia Schiazzano at 646-733-3051.

Sincerely,

Robert B. Swierupski
Director,

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