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NY K88079




August 17, 2004
CLA-2-RR:NC:TA:N3:356 K88079

CATEGORY: CLASSIFICATION

Ms. Rhoda A. Salus
Sandler, Travis & Rosenberg, P.A.
The Waterford
5200 Blue Lagoon Drive
Miami, FL 33126-2022

RE: Classification and country of origin determination for a men’s knit garment; 19 CFR 102.21(c)(2); tariff shift; status under the Caribbean Basin Trade Partnership Act (CBTPA).

Dear Ms. Salus:

This is in reply to your letter dated July 21, 2004 on behalf of Ayplus Apparel, Inc., concerning the classification, country of origin, and status under the Caribbean Basin Trade Partnership Act (CBTPA) for a men’s knit garment that will be imported into the United States. As requested, your sample will be returned.

FACTS:

Style 1054 is a men’s pullover garment constructed from 100% cotton, jersey knit fabric that measures 24 stitches per two centimeters counted in the horizontal direction. Style 1054 has a rib knit crew neckline; short, hemmed sleeves; a large woven label sewn into the lower left side seam; and a straight, hemmed bottom.

You state that U.S. origin yarn will be knit into fabric in Guatemala and the fabric will be dyed, cut, and assembled into garments in Guatemala. The woven labels will be from El Salvador and the paper hangtags will be from Hong Kong. After assembly, the garments will be finished and packed for export directly to the United States.

You have provided a sample of the finished garment for our review. As requested, your sample will be returned.

ISSUE:

What are the classification, country of origin, and status under the Caribbean Basin Trade Partnership Act of the subject merchandise?

CLASSIFICATION:

The applicable subheading for Style 1054 will be 6110.20.2065, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for men’s or boys’ pullovers, knitted or crocheted: of cotton: men’s. The general rate of duty is 16.5 percent ad valorem.

The garment falls within textile category designation 338. 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.cpb.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

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.

Paragraph (b) (6) defines “wholly assembled” as:

The term “wholly assembled” when used with reference to a good means that all components, of which there must be at least two, preexisted 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.

The submitted garment is not knit to shape and consists of two or more parts. As all of the assembly operations occur in Guatemala, the garments are considered “wholly assembled” in a single country, that is, Guatemala. As per the terms of the tariff shift requirement, country of origin is conferred in Guatemala.

Based on the information you supplied, and provided all requirements are met, the garment is eligible for duty free treatment under subheading 9820.11.09, HTSUSA, which provides for:

Articles imported from a designated beneficiary Caribbean Basin Trade Partnership country enumerated in general note 17(a) to the tariff schedule:

Apparel articles (other than socks provided for in heading 6115 of the tariff schedule) knit to shape in such a country from yarns wholly formed in the United States; knitted or crocheted apparel articles (except t-shirts, other than underwear, classifiable in subheadings 6109.10.00 and 6109.90.10 and described in subheading 9820.11.12) cut and wholly assembled in one or more such countries from fabrics formed in one or more such countries or from fabrics formed in one or more such countries and the United States, all the foregoing from yarns wholly formed in the United States (including fabrics not formed from yarns, if such fabrics are classifiable in heading 5602 or 5603 of the tariff schedule and are formed in one or more such countries) and subject to the provisions of U.S. note 2(b) to this subchapter

HOLDING:

The country of origin of the submitted garment is Guatemala. Based upon international textile trade agreements, products of Guatemala are not presently subject to visa requirements or 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,
National Commodity

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