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NY K86114




June 9, 2004

CLA2-61:RR:NC:TA-359:K86114

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)(4)

Dear Mr. Hui:

This is in reply to your letter dated April 28, 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 9890/ 9890P/ 9890W, a woman’s knitted cardigan that has a fiber content of 84% cotton, 11% polyester, 5% spandex. The cardigan features a full-front opening with a zippered closure; long sleeves which are hemmed; a hemmed bottom; a permanently attached hood without closure; and two pockets in the front at the waist. The knit fabric, which is napped on one side, has more than nine stitches per two centimeters, measured in the direction in which the stitches were formed. The body of the cardigan consists of five panels: two in the front, two on the sides and one in the rear.

You have also submitted the unfinished components for one version of this sample. These components demonstrate the unfinished garment in the condition found at the end of processing in the first country and they include

-the front panels which are completely sewn at the sides to the side panels, which are, in turn, only partially sewn to the back panel; none of these panels are sewn at the shoulders;
-the front panels with the zipper, the zipper tape and its facing and with the front pockets sewn to them; -the front, side and back panels are hemmed; (the following two items are not sewn to anything): -the two panels of the hood are sewn together and both are hemmed; -the sleeve panels (no work done to them).

The manufacturing operations for the woman’s knitted cardigan, according to the two 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 -construct the hood
-sew the pockets on the front panels
-partially sew the side seams
-hem the bottom
-sew the zipper with its facing and tape to front panels;

In Country B
-finish sewing the side seams
-sew the front and back panels at the shoulder seams -sew the sleeves to the body
-sew the hood to the body
-attach care labels
-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 -sew the two pockets on the front panels
-construct the hood;

In Country B
-sew the front and back panels at the shoulder seams -sew the hood to the body
-attach the labels
-sew the side seams
-sew the sleeves to the body
-sew the zipper with its facing and tape to the front panels -hem the bottom
-inspect and pack the garment

Concerning the proposed production plans for this style which you have submitted, we note that one of them, that is Production Plan I, undertakes a partial sewing operation on one of the significant seams of the garment during the processing in the first producing country. 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 Plan I. Additionally, we note that, at a recent conference between representatives of your company and some of the National Import Specialists for wearing apparel, we agreed to address the issue of partial seam sewing and its affect on determining country of origin in a separate submission which can be reviewed by our headquarters’ office.

ISSUE:

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

CLASSIFICATION:

The applicable subheading for the woman’s knitted cardigan, Style 9890/ 9890P/ 9890W, 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 rate of duty will be 16.5% ad valorem.

The cardigan 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. Under your Production Plan II, the cardigan is not wholly assembled in a single country, territory or insular possession. Accordingly, as the tariff shift does not take place, the cardigan 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 cardigan under Production Plan II, 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 plan, 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, the cardigan, Style 9890/ 9890P/ 9890W, according to Production Plan II, the following constitute the most important assembly processes:

-the sewing of the front and back panels at the shoulder seams -the sewing of the hood to the body
-the sewing of the side seams
-the sewing of the sleeves to the body and -the sewing of the zipper with its tape and placket to the body, all of which occurs in Country B;

Accordingly, the country of origin of the woman’s knitted cardigan, Style 9890/ 9890P/ 9890W, under Production Plan II, is Country B.

HOLDING:

The country of origin of the woman’s knitted cardigan, Style 9890/ 9890P/ 9890W under Production Plan II, 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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