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NY K87097




July 8, 2004

CLA2-RR:NC:TA:355: K87097

CATEGORY: CLASSIFICATION

Mr. Michael Lee
Lee & Huang Associates
2330 Mountain Brook Drive
Hacienda Heights, CA 91745

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

Dear Mr. Lee:

This is in reply to your letter dated June 12, 2004, requesting a classification and country of origin determination for men’s pants which will be imported into the United States. This request was made on behalf of Delta Global Manufacturing, Inc.

FACTS:

The subject merchandise consists of a pair of men’s woven, 100% cotton twill pants, identified as style DGM061004.

You state that the pants will be made of fabric that is pre-cut into components and partially assembled in China or another country. You state that the fabric used will be of Chinese, U.S. or another country origin. For purposes of this ruling, we will assume that no country which has either a trade agreement with the United States or which is the beneficiary country of a trade program, will be one of the countries involved in this transaction.

The manufacturing operations for the pants are as follows:

CHINA OR A THIRD COUNTRY:

Fabric is formed in China, the United States or a third country. The fabric is shipped to China or a third country The fabric is cut into component parts
The waistband is formed
The belt loops are formed and attached to the waistband The front and back panels are made up and serged The two back pockets are attached to the back panels The two front pockets are attached to the front panels The zipper and front fly is attached to both front panels; however, the front rise is not completed The buttonholes are sewn
The buttonholes and buttons are set on the back pockets. These component parts are then packed and shipped to the United States

UNITED STATES:

The outer seams are joined
The inner seams are joined
The front and back panels are attached, thus creating the back rise and completing the front rise The lower ends of the belts loops are attached to the waistband The waistband closure is added
The leg openings are hemmed
Labels are attached
Bartacking and trimming are done the garment is packaged and packed for delivery to the buyer’s warehouse in the United States

ISSUE:

What are the classification and country of origin of the subject merchandise (1) upon importation into the United States and (2) upon completion of the sewing in the United States?

CLASSIFICATION:

The applicable subheading for the pants will be 6203.42.4015, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for men’s or boys’ trousers, bib and brace overalls, breeches and shorts: Of cotton” Other: Other: Trousers and breeches: Men’s: :Other. The rate of duty will be 16.6% ad valorem.

Style DGM061004 falls within textile category designation 347. 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

6201 - 6208 If the good consists of two or more component parts, a change to an assembled good of heading 6201 through 6208 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 good must be wholly assembled in a single country, territory or insular possession. Accordingly, as the pants do not meet this requirement, 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, 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, forming the waistband, forming the front and back panels, attaching the pockets to the front and back panels, and attaching the zipper to the two front panels constitute the most important assembly processes. Accordingly, the country of origin of the pants, at the time of importation into the United States, is China or another third country.

Once the goods are subjected to further assembly in the United States, the country of origin would change as the most significant assembly or manufacturing processes would no longer have taken place in China or a third country. The most important assembly processes after importation into the United States are the sewing of the inner and outer seams, and the sewing of the front and back panels which creates the back rise and finishes the formation of the front rise. Accordingly, the country of origin of the pants, after all the sewing and finishing processes have been completed, is the United States.

In your letter you inquire whether the goods may be marked “Made in U.S.A.” Please note that if a good is determined to be an article of U.S. origin, it is not subject to the country of origin marking requirements of 19 U.S.C. §1304. Whether an article may be marked with the phrase "Made in the USA" or similar words denoting U.S. origin, is an issue under the authority of the Federal Trade Commission (FTC). We suggest that you contact the FTC Division of Enforcement, 6th and Pennsylvania Avenue, N.W., Washington, D.C. 20508 on the propriety of proposed markings indicating that an article is made in the U.S.

At the time of importation of the pants in their various component parts, unless a waiver of marking is applied for and granted, the goods must be marked with the appropriate country of origin that is applicable at the time of importation, that is, China or another third country.

HOLDING:

The country of origin of the pants upon importation into the United States is China. Based upon international textile trade agreements style DGM0610204 is 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 Camille R. Ferraro at 646-733-3046.

Sincerely,

Robert B. Swierupski
Director,

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