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NY K85250




June 14, 2004

CLA2-RR:NC:TA-359: K85250

CATEGORY: CLASSIFICATION

Ms. Brenda A. Jacobs
Sidley, Austin, Brown and Wood, LLP
1501 K Street, N.W.
Washington, D.C. 20005

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

Dear Ms. Jacobs:

This is in reply to your letter dated May 14, 2004, submitted on behalf of Hoi Meng Garment Manufacturing, Ltd., requesting a classification and country of origin determination for women’s knitwear which will be imported into the United States. Your sample is returned as requested.

FACTS:

The subject merchandise consists of a woman’s knitted sweatshirt, Style 1T0762, which consists of 80% cotton, 20% polyester fibers. The sweatshirt features a partial front opening with a zippered closure; long sleeves with rib knit cuffs; a self fabric hood with a drawstring closure that goes through a grommet on each side of the hood; a rib knit bottom; a half moon sweat patch on the inside rear of the neckband and a kangaroo pocket at the waist in the front. The inside fabric of the body and of the sleeves is fully napped, while the outside fabric is jersey knit. The inside and outside of the hood fabric is jersey knit and there is a twill tape sewn to the inside seam where the hood is joined to the body. There is contrasting color double needle stitching sewn on the outer surface of all of the seams of the sweatshirt. SPECIAL NOTE: Although your presentation of the production process for the sweatshirt mentions “attach lettering across front panel”, no such lettering is present either on the sample or its component parts.

You also submitted the unassembled component parts and panels of the sweatshirt in order to show the unfinished garment as it exists in the various stages of its production. These include the following: Stage One -
-the front panel with the kangaroo pocket and the zipper with the zipper tape sewn to it
-the back panel with the half moon sweat patch sewn to it -the two sleeve panels
-the strips of fabric for the waistband and the sleeve cuffs; Stage Two -
-the front and back panels are completely sewn together at the shoulders and at the side seams and the arms are fully sewn to the body; the edges of the neck, the sleeves and the bottom are raw;
Stage Three -
-the constructed hood with the bottom edges left raw.

The manufacturing operations for the woman’s knitted sweatshirt are as follows: In Country A (Stage One)
-cut the fabric into component panels, shapes and strips -construct the pocket
-sew the pocket to the front panel
-sew half moon sweat patch to the back panel -construct the partial placket with its zipper and zipper tape -sew the placket with the zipper and the zipper tape to the front panel;

In Country B (Stage Two)
-sew the front and back panels at the shoulder seams -sew the sleeves to the front and back panels -sew the underarm seams and the side seams;

In Country A (Stage Three)
-construct the hood
-sew the hood to the front and back panels -sew inside neck binding to the hood with twill tape -construct the sleeve cuffs and sew them to the sleeves -attach the grommets, the drawstring and the labels -inspect and pack the finished garment.

You note that neither of the two countries that produce this garment is an insular possession or a party to a free trade agreement or a preference arrangement with the United States.

ISSUE:

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

CLASSIFICATION:

The applicable subheading for the woman’s knitted sweatshirt, Style 1T0762, will be 6110.20.2045, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for sweaters, pullovers, sweatshirts --- and similar articles, knitted or crocheted: of cotton: other: other: sweatshirts: women’s. The rate of duty will be 16.5% ad valorem.

The sweatshirt 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 U.S. Customs Service Textile Status Report, an internal issuance of the U.S. Customs Service, which is available at the Customs Web Site at WWW.CUSTOMS.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:

On December 8, 1994, the President signed into law the Uruguay Round Agreements Act. Section 334 of that Act (codified at 19 U.S.C. 3592) provides new rules of origin for textiles and apparel entered, or withdrawn from warehouse, for consumption, on and after July 1, 1996. On September 5, 1995, Customs published Section 102.21, Customs Regulations, in the Federal Register, implementing Section 334 (60 FR 46188). Thus, effective July 1, 1996, the country of origin of a textile or apparel product shall be determined by 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 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.

Section 102.21(e) states that, for garments which are not knit to shape and which consist of two or more component parts, a change must occur 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. Although the good is changed from unassembled components to an assembled good, this change is not the result of the good being assembled in a single country, territory or insular possession. Accordingly, as the requirement of Section 102.21(e) is not met, 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, 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 sewing of the seam at the shoulders (joining the front and back panels), the sewing of the sleeves to the body, and the sewing of the side seams and underarm seams (joining the front and back panels at the sides), all of which occur in Country B, constitute the most important assembly processes. Accordingly, the country of origin of the woman’s knitted sweatshirt, Style 1T0762, is Country B.

HOLDING:

The country of origin of the woman’s knitted sweatshirt 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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