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NY K86959




June 18, 2004

CLA2-RR:NC:WA:359 K86959

CATEGORY: CLASSIFICATION

Ms. Linda Louie
United Customhouse Brokers, Inc.
5777 W. Century Blvd., Suite 590
Los Angeles, CA 90045

RE: Classification and country of origin determination for a woman’s knitted cardigan; 19 CFR 102.21(c)(3)

Dear Ms. Louie:

This is in reply to your letter received June 7, 2004, requesting a classification and country of origin determination for a woman’s knitted cardigan which will be imported into the United States. This request was made on behalf of Dong Yang Co., Ltd. of Long Beach, CA.

FACTS:

The subject sample, style T9974, is a woman’s cardigan. The two front panels of the cardigan consist of two layers of fabric bonded together. They form the entire front of the cardigan. The front panels are constructed from pieced together patches of this bonded fabric; creating a network of seams throughout the front surface of the garment. You state that the outer layer of the front panels is constructed from 100% acrylic woven fabric. You state that the inner layer of the front panels is constructed from 100% polyester faux shearling knit pile fabric. The collar, sleeves and back panel is constructed of rib knit fabric, made of 100% acrylic fiber yarn. The inner surface of the front panels measures more than 9 stitches per 2 centimeters in the direction in which the stitches were formed. The cardigan features a mock turtleneck collar, long sleeves and a full front opening with a zipper closure. On the front panels, the knit pile fabric is visible on the bottom of the garment and through the seams of the piece-worked panels. The tariff classification of this cardigan is governed by the rules used to classify its fabric; Legal note 1(c) Chapter 60, Harmonized Tariff Schedule of the United States, (HTS), noted.

The essential character of the cardigan is imparted by the knit front panels; General Rules of Interpretation (GRI), Rule 3, HTS, noted.

You submitted the component pieces of the garment as well as a sample of the finished garment. All will be returned as you have requested.

The component pieces consist of a self-start knit to shape back panel, two self-start knit to shape sleeve panels, a self-start knit to shape collar, and eight cut to shape component pieces which form the front panels.

The manufacturing operations for style T9974 are as follows:

Taiwan:

The back panel, collar and sleeve panels are knit to shape and shipped to China.

China:

The woven fabric for the front panels is formed. The knit fabric for the inner layer of the front panels is formed. These fabrics are bonded together and cut into component pieces. The garment is fully assembled in China. Trimming, finishing and packing are all done in China.

ISSUE:

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

CLASSIFICATION:

The applicable subheading for style T9974 will be 6110.30.3055, HTS, which provides for sweaters, pulloversand similar articles, knitted or crocheted: Of man-made fibers: Other: Other: Other: Other: Other: Women’s or girls’. The rate of duty will be 32% ad valorem.

Style T9974 falls within textile category designation 639. 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

6101 - 6117 If the good is knit to shape, a change to a heading 6101 through 6117 from any heading outside that group, provided that the knit to shape components are knit in a single country, territory, or insular possession.

Section 102.21(b) (3) states that the term “knit to shape” applies to any good of which 50% or more of the exterior surface area is formed by major parts that have been knitted or crocheted directly to the shape used in the good.

Regarding the sample under review, the back and sleeve panels are considered to be knit to shape while the front panels are not knit to shape. However, since the back panel, when combined, for measuring purposes, with the two sleeve panels, constitutes more than 50% of the exterior surface area of the garment, the cardigan is considered a knit to shape garment. Section 102.21(e) states that, for garments that are knit to shape, the tariff shift change to headings 6101 through 6117 must take place from any heading outside that group. However, the present tariff shift change occurs within that group, i.e., from the panels of heading 6117 to the sweater in heading 6110. Accordingly, as the required tariff shift does not take place, 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 considered knit to shape, and as it is knitted in a single country, i.e., Taiwan, Section 102.21(c)(3) applies.

HOLDING:

The country of origin of style T9974 is Taiwan. Based upon international textile trade agreements products of Taiwan 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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