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NY K86523




June 9, 2004
CLA-2-RR:NC:TA:N3:356 K86523

CATEGORY: COUNTRY OF ORIGIN

Ms. Sharon Lim
Ghim Li Enterprise (USA), Inc.
501 Seventh Avenue, Suite 509
New York, NY 10018

RE: Country of origin determination for a knit garment; 19 CFR 102.21 (c)(2); tariff shift; 19 CFR 102.21 (c)(4); most important assembly

Dear Ms. Lim:

This is in reply to your letter dated June 3, 2004 (your reference 01/0525), requesting a country of origin determination for a knit garment that will be imported into the United States. In each production plan, the assembly operations occur in two different countries, designated as Country “A” and Country “B”. You submitted a sample of the partially assembled garment and a sample of the finished garment as it will be imported into the United States.

FACTS:

The submitted sample, a “pullover hoodie” is constructed from knit fabric and has a hood, long raglan sleeves with rib knit cuffs, a pocket, and an attached waistband.

The manufacturing operations for Production Plan #1 are as follows:

COUNTRY A:
The pattern is made and marked
The fabric is cut into component parts
The hood is made
The pocket is attached
The raglan sleeves are attached

COUNTRY B:
The sleeve seams are sewn
The side seams are sewn
The cuffs and waistband are attached
The hood is attached
The garment is trimmed, inspected and packed for export

Optional Production Steps - May be done in either country:

The main and care labels are attached
Make drawstring holes and insert drawstring Screen print / embroidery / applique on front / back panels or sleeves Attach brand label(s)

The manufacturing operations for Production Plan #2 are as follows:

COUNTRY A:
The pattern is made and marked
The fabric is cut into component parts
The pocket is attached

COUNTRY B:
The hood is made
The hood is attached
The sleeve seams are sewn
The raglan sleeves are attached
The side seams are sewn
The cuffs and waistband are attached
The garment is trimmed, inspected and packed for export

Optional Production Steps - May be done in either country:

The main and care labels are attached
Make drawstring holes and insert drawstring Screen print / embroidery / applique on front / back panels or sleeves Attach brand label(s)

The manufacturing operations for Production Plan #3 are as follows:

COUNTRY A:
The pattern is made and marked
The fabric is cut into component parts
The hood is made
The pocket is attached
The raglan sleeves are attached
The hood is attached

COUNTRY B:
The sleeve seams are sewn
The side seams are sewn
The cuffs and waistband are attached
The garment is trimmed, inspected and packed for export

Optional Production Steps - May be done in either country:

The main and care labels are attached
Make drawstring holes and insert drawstring Screen print / embroidery / applique on front / back panels or sleeves Attach brand label(s)

The manufacturing operations for Production Plan #4 are as follows:

COUNTRY A:
The pattern is made and marked
The fabric is cut into component parts

COUNTRY B:
The pocket is attached
The sleeve seams are sewn
The raglan sleeves are attached
The hood is made
The hood is attached
The side seams are sewn
The cuffs and waistband are attached
The garment is trimmed, inspected and packed for export

Optional Production Steps - May be done in either country:

The main and care labels are attached
Make drawstring holes and insert drawstring Screen print / embroidery / applique on front / back panels or sleeves Attach brand label(s)

The manufacturing operations for Production Plan #5 are as follows:

COUNTRY A:
The pattern is made and marked
The fabric is cut into component parts
The cuffs and waistband are attached
The hood is made
The pocket is attached

COUNTRY B:
The sleeve seams are sewn
The raglan sleeves are attached
The side seams are sewn
The hood is attached
The garment is trimmed, inspected and packed for export

Optional Production Steps - May be done in either country:

The main and care labels are attached
Make drawstring holes and insert drawstring Screen print / embroidery / applique on front / back panels or sleeves Attach brand label(s)

ISSUE:

What is the country of origin of the subject merchandise?

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

6101-6117 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.

The subject garment is classified within the above classification range, HTS 6101-6117.

For Production Plan #4, the submitted garment is not knit to shape and consists of two or more parts. As all of the assembly operations in Production Plan #4 occur in Country “B”, the garment is considered “wholly assembled” in a single country, that is Country “B”. As per the terms of the tariff shift requirement, country of origin is conferred in Country “B” for Production Plan #4.

For Production Plans #1, 2, 3, and 5, although the garment is not knit to shape and consists of two or more component parts, it is not wholly assembled in a single country, territory or insular possession. Accordingly, as the terms of the tariff shift are 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”:

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

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.

For Production Plans #1, 2, 3 and 5, since the garment is neither knit 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 Production Plan #1, the assembly processes in Country “B” consisting of the joining of the side seams, the attachment of the cuffs, the attachment of the waistband, and the attachment of the hood constitute the most important assembly processes.

In the case of Production Plan #2, the assembly processes in Country “B” consisting of the attachment of the hood, the attachment of the raglan sleeves, the joining of the side seams, the attachment of the cuffs, and the attachment of the waistband constitute the most important assembly processes.

In the case of Production Plan #3, the assembly processes in Country “A” consisting of the attachment of the pocket, the attachment of the raglan sleeves, and the attachment of the hood constitute the most important assembly processes.

In the case of Production Plan #5, the assembly processes in Country “B” consisting of the attachment of the raglan sleeves, the joining of the side seams, and the attachment of the hood constitute the most important assembly processes.

Accordingly, under Section 102.21 (c)(4), the country of origin of the garment in Production Plan #1, 2 and 5 is Country “B”, the country in which the most important assembly processes occur. In Production Plan #3, the country of origin of the garment is Country “A”, the country in which the most important assembly processes occur.

HOLDING:

The country of origin of the garment in Production Plans #1, #2, #4, and #5 is Country “B”. The country of origin of the garment in Production Plan #3 is Country “A”. Based upon international textile trade agreements, products of Country “A” and Country “B” may be subject to visa requirements and quota restraints.

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 sections 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 Mary Ryan at 646-733-3271.

Sincerely,

Robert B. Swierupski
Director,

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