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NY K85242





June 15, 2004
CLA2-RR:NC:3:353 K85242

CATEGORY: CLASSIFICATION

John S. Rode
Rode & Qualey
55 West 39th Street
New York, NY 10018

RE: Classification, country of origin and AGOA eligibility determination for knit hats; 19 CFR 102.21(c)(3); tariff shift

Dear Mr. Rode:

This is in reply to your letter dated May 14, 2004, on behalf of Amicale Industries, Inc., requesting a classification, country of origin and AGOA eligibility determination for knit hats which will be imported into the United States. As requested, the samples will be returned to you.

The submitted samples consist of two knit hats with turned cuffs. The orange hat is constructed of knit 90% wool, 10% cashmere; the red hat is constructed of 100% cashmere.

The manufacturing operations for the orange and red hats are as follows:

Italy:

Wool and cashmere yarns are spun

Mauritius:

Hats are knit to shape (one piece)
Hats are finished by sewing a single seam on one side of the hat

The applicable subheading for the orange hat, 90% wool/10% cashmere, will be 6505.90.3090, Harmonized Tariff Schedule of the United Annotated (HTSUSA), which provides for “Hats and other headgearOf wool: Knitted or crocheted or made up from knitted or crocheted fabric, Other: Other.” The general rate of duty will be 25.4 cents per kilogram plus 7.7 percent ad valorem. The textile category designation is 459.

The applicable subheading for the red hat, 100% cashmere, will be 6505.90.9045, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for “Hats and other headgearOther: Other, Other: Of fine animal hair.” The general rate of duty will be 20.7 cents per kilogram plus 7.5 percent ad valorem. The textile category designation is 459.

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at 19 U.S.C. 3592), enacted on December 8, 1994, provided rules of origin for textiles and apparel entered, or withdrawn from warehouse for consumption, on and after July 1, 1996.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

6505.90 (2) If the good does not consist of two or more components, a change to subheading 6505.90 from any other heading, except from heading 5007, 5111 through 5113, 5208 through 5212, 5407 through 5408, 5512 through 5516, 5602 through 5603, 5608, 5801 through 5804, 5806, 5808 through 5811, 5903, 5906 through 5907, and 6001 through 6002, and provided that the change is the result of a fabric-making process.

The goods were not changed as the result of a fabric-making process, as they were knit to shape. Accordingly, 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.

As the subject merchandise is knit to shape in Mauritius, Section 102.21(c)(3) applies. The country of origin of the hats is Mauritius.

Regarding eligibility under the African Growth and Opportunity Act (AGOA), subheading 9819.11.21 provides for:

Articles imported from a designated beneficiary sub-Saharan African country enumerated in U.S. note 1 to this chapter: Apparel articles both cut (or knit-to-shape) and sewn or otherwise assembled in one or more such countries from fabrics or yarn that is not formed in the United States or a beneficiary country, provided that such apparel articles of such fabrics or yarn would be considered an originating good under the terms of general note 12(t) to the tariff schedule without regard to the source of the fabric or yarn if such apparel article had been imported from the territory of Canada or the territory of Mexico directly into the customs territory of the United States.

General Note 12(t) Chapter 65 requires that “2. a change to headings 6503 through 6507 from any other heading outside that group” occurs for the good to be considered an originating good.

The hats:

Are knit to shape and sewn in Mauritius (a beneficiary sub-Saharan African country) Are formed from yarns that are not formed in the United States or a beneficiary country Are considered originating goods under General Note 12(t)

The hats are eligible for preferential treatment under the AGOA, subheading 9819.11.21. The rate of duty is Free.

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 Kenneth Reidlinger at 646-733-3053.

Sincerely,

Robert B. Swierupski
Director,

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