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NY K85130

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April 30, 2004

CLA2-61:RR:NC:TA-359:K85130

CATEGORY: CLASSIFICATION

Mr. Joey Hui
Asst. Production Planning Controller
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. Hui:

This is in reply to your letter dated April 13, 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 109571 (ladies’ sizes) / 109571P (mama sizes), a woman’s knitted jacket which has a fiber content of 100% cotton or 97% cotton, 3% spandex. The jacket features a full-front opening with a zippered closure; long, raglan sleeves with rib knit cuffs; a rib knit waistband; a permanently attached hood which has a lining and a functional drawstring closure that passes through two grommets at the neck; and two narrow strips of overlaid fabric that are sewn along the length of each sleeve. There is decorative embroidery at the left chest.

You have also submitted the unfinished components for one version of this sample. These components include

-the back panel and the front panel which have the complete rib knit waistband sewn to each panel; this joins the three panels at the waistband; also, the front and back panels are partially sewn to each other at the bottom of the side seams; the pockets and the placket with the zipper and zipper tape are sewn to the front panels and the left panel is embroidered; -the two sleeve panels (no work done); the two sleeve cuffs (no work done);
-the constructed hood, including the lining, drawstring and grommets. These components represent your intention to show the condition of the unfinished jacket after it is processed in the first country, however they refer to ONLY the first production plan out of the five that you have proposed. Further, even for the production plan to which it does apply, that is, to Production Plan I, there is an exception to its application in that Country A lists “partially sew sleeve seam”, while the sleeve components that you submitted were not worked on.

The manufacturing operations for the woman’s knitted jacket, according to the five 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 left front panel at the chest -construct the hood including the drawstring, grommets and lining -partially sew the side seams
-sew the waistband to the body
-sew the zipper, zipper tape and the placket to the front panels -sew the overlaid fabric strips to the sleeves -sew the rib knit cuffs to the sleeves
-sew the pockets to the front panels;

In Country B
-finish sewing the sleeve seams
-sew the raglan sleeves to the body
-sew the hood to the body
-attach care labels
-complete the sewing of the side seams
-inspect and pack the garment

Under Production Plan II
In Country A
-make and mark the pattern
-cut the fabric into component panels and parts -embroider the left front panel at the chest -construct the complete hood
-partially sew the side seams
-sew the rib waistband to the body
-sew the zipper with the placket to the front panels -partially sew the sleeve seams
-sew the rib cuffs to the sleeves

In Country B
-sew the pockets to the front panels
-sew the overlaid fabric to the sleeves
-attach the labels
-complete sewing of sleeve seams
-sew the raglan sleeves to the body
-sew the side seams
-hem the bottom
-inspect and pack the garment

Under Production Plan III
In Country A
-make and mark the pattern
-cut the piece goods into component panels and parts -embroider the front panels
-construct the hood, including the drawstring and grommets -sew the pocket to the front panel

In Country B
-sew the overlaid fabric strips to the sleeves -sew the sleeve seams
-sew the raglan sleeves to the body
-sew the hood to the body
-attach care label
-sew the side seams
-sew the rib waistband to the body
-sew the zipper with the zipper tape and placket to the body -inspect and pack

Under Production Plan IV
In Country A
-make and mark the pattern
-cut the fabric into component parts and panels -embroider the front panel

In Country B
-sew pocket to front panel
-sew overlaid fabric strips to sleeves
-sew sleeve seams
-sew raglan sleeves to body
-construct hood, including drawstring and grommets -sew hood to body
-sew side seams
-sew waistband to body
-sew zipper with zipper tape and placket to body -inspect and pack

Under Production Plan V
In Country A
-make and mark pattern
-cut fabric into component panels and parts -embroider front panel

In Country B
-construct hood including drawstring and grommets -partially sew side seams
-sew waistband to body
-sew zipper with zipper tape and placket to body -sew overlaid fabric strips to sleeves
-partially sew sleeve seams
-sew cuffs to sleeve ends
-sew pockets to front panels

In Country C
-complete sewing sleeve seams
-sew raglan sleeves to body
-sew hood to body
-attach care labels
-sew side seams
-inspect and pack.

Concerning the proposed production plans for this style which you have submitted, we note that three of them, that is Production Plans I, II and V, undertake a partial sewing operation on one or more significant seams of the garment during the processing in one of the producing countries. Since you have offered no rational, satisfactory commercial or engineering explanation why you are performing a simple sewing operation in two separate countries, we are declining to render a decision on the country of origin of the garment for Production Plans I, II and V. Additionally, we note that the sample that you submitted for our examination shows no evidence of the claimed partial sewing on the seams indicated on the listing of the steps in the production plans.

ISSUE:

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

CLASSIFICATION:

The applicable subheading for the woman’s knitted jacket, Style 109571 / 109571P, will be 6102.20.0010, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for women’s --- carcoats --- windbreakers and similar articles, knitted or crocheted, other than those of heading 6104: of cotton: women’s. The rate of duty will be 15.9% ad valorem.

The jacket falls within textile category designation 335. 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

6102.20 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 IV, the women’s knitted jacket, which is not knit to shape but which does undergo a classification change from the parts of heading 6117 to the finished good of heading 6102, 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 III, the jacket is not wholly assembled in a single country, territory or insular possession. Accordingly, as the tariff shift does not take place, the jacket does not qualify and Section 102.21(c)(2) is inapplicable to that production plan. We, therefore, must continue to seek a determination of the country of origin for the jacket under Production Plan III, according to the remaining sequential rules.

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, under the remaining production plans, 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 jacket, Style 109571/109571P, according to Production Plan III, the following constitute the most important assembly processes:

For Production Plan III
-the sewing of the raglan sleeves to the body -the sewing of the hood to the body
-the sewing of the side seams and
-the sewing of the zipper with zipper tape and placket to the body, all of which occurs in Country B;

Accordingly, the country of origin of the woman’s knitted jacket, Style 109571/ 109571P, under Production Plan III, is Country B.

HOLDING:

The country of origin of the woman’s knitted jacket, Style 109571/ 109571P, under Production Plan IV, is Country B, Customs Regulations, Section 102.21(c)(2). The country of origin of the woman’s knitted jacket, Style 109571/ 109571P, under Production Plan III 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,

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See also:

• Tariff No.: 6102.20.00 - Women's or girls' overcoats, carcoats, capes, cloaks, anoraks, windbreakers and similar articles, knitted or crocheted, of cotton
• Tariff No.: 6209.20.50 - Babies' garments & clothing acc. nesoi, of cotton, incl. sunsuits & sim app, sets & parts of sets, & diapers, not knitted or crocheted