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NY K86618





June 29, 2004

CLA2-61-RR:NC:WA:359:K86618

CATEGORY: CLASSIFICATION

Mr. Eric Flicker
Onwel California, Inc.
1143 East Janis Street
Carson, California 90746

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

Dear Mr. Flicker:

This is in reply to your letter dated June 3, 2004, requesting a classification and country of origin determination for women’s knitwear that will be imported into the United States. Your samples will be returned as you have requested.

FACTS:
The subject merchandise consists of two samples that represent one style in two stages of its production. The garment under consideration is a woman’s knitted, cap sleeve pullover that is made from 100% cotton fibers. The pullover has a shirt-type collar; a v-shaped, six-inch long opening with a placket that extends from the front neckline and that is without closure; cap sleeves that are hemmed; and a hemmed bottom. The rib knit fabric of the pullover has more than nine stitches per two centimeters, measured in the direction in which the stitches were formed. Exhibit A shows the partially assembled garment after its initial production that occurs in China. In this exhibit the collar and placket are sewn to the front panel; the front and back panels are partially sewn together at the lower one-third of the sides; and the bottom of the front and back are hemmed. At this point the cap sleeves are not attached to the unfinished body of the pullover. Exhibit B shows the fully assembled pullover after its final production that occurs in Hong Kong. This exhibit also has stitching in two different colors: the red stitching indicates sewing that occurs in China, while the navy stitching represents sewing that is performed in Hong Kong. The style number for this merchandise is 1W2OW001.

The manufacturing operations for the woman’s knitted pullover are as follows: In China
-cut fabric into component panels
-sew interlining to collar
-sew front and back of collar together
-sew collar to front panel
-sew placket to front panel
-sew a small portion of the lower side seam to facilitate hemming the bottom -hem bottom

In Hong Kong
-sew front and back panels at the shoulder seams -sew collar to body
-sew sleeves to body
-hem sleeves
-sew the rest of the side seam.

ISSUE:

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

CLASSIFICATION:

The applicable subheading for the woman’s knitted pullover, Style 1W2 OW 001, 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 is 16.4% ad valorem.

The pullover 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

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.

Section 102.21(e) states that the tariff shift must be the result of the good being wholly assembled in a single country, territory or insular possession. According to the production process that you have submitted, assembly processing occurs in more than one country and therefore, the terms of the tariff shift are not fulfilled. Accordingly, as the pullover does not qualify for the tariff shift, 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 is 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 woman’s knitted pullover, the following constitute the most important assembly processes: -the sewing of the front and back panels at the shoulders -the sewing of the collar to the body
-the sewing of the sleeves to the body and -the completion of sewing of the side seams, all of which occur in Hong Kong.

Accordingly, the country of origin of the woman’s knitted pullover, Style 1W2 OW 001 is Hong Kong.

HOLDING:

The country of origin of the woman’s knitted pullover, Style 1W2 OW 001 is Hong Kong. Based upon international textile trade agreements products of Hong Kong are 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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