United States International Trade Commision Rulings And Harmonized Tariff Schedule
faqs.org  Rulings By Number  Rulings By Category  Tariff Numbers
faqs.org > Rulings and Tariffs Home > Rulings By Number > 2005 NY Rulings > NY L81121 - NY L81188 > NY L81128

Previous Ruling Next Ruling
NY L81128




December 22, 2004

CLA-2-RR:NC:TA:N3:356 L81128

CATEGORY: CLASSIFICATION

Mr. Ralph Tramantano
Roytex, Inc.
16 East 34th Street, 17th Floor
New York, NY 10016

RE: Classification and country of origin determination for a men’s woven shirt; 19 CFR 102.21(c)(2); tariff shift; African Growth and Opportunity Act (AGOA), subheading 9819.11.21, HTSUSA

Dear Mr. Tramantano:

This is in reply to your letter dated November 15, 2004, requesting a classification and country of origin determination, and the status under the African Growth and Opportunity Act (AGOA), for men’s woven shirts imported into the United States. As requested, your sample will be returned.

FACTS:

Style 787076M is a men’s shirt constructed from 100% cotton, plain woven fabric manufactured of yarns of different colors. The garment features a left over right full front opening with seven button closures; short, hemmed sleeves; a button down collar; a curved hemmed bottom; a pocket on the left chest; and the initial “H” embroidered on the bottom of the front placket. The shirt is imported in sizes S, M, L and XL.

You state that the fabric contains 102.36 single yarns per centimeter in the warp and 35.03 single yarns per centimeter in the filling. It is constructed using two-ply yarns in the warp and single ply yarns in the filling. The fabric is 58.5 inches wide and the fabric weight is 120.0 grams per square meter. Based on the information you provided, the average yarn number has been calculated to be 114 in the metric system.

The manufacturing operations for the shirt are as follows:

CHINA:

The shirting fabric is woven into bolts of cloth without lines of demarcation The interlining fabric is made

MAURITIUS:

The shirting and interlining fabrics are cut into component parts The shirt is completely assembled into a finished garment The embroidery is added to the front placket

You state that the main label, the size label and the buttons are sourced in China; the sewing thread is sourced in Mauritius; and the embroidery thread is sourced in Hong Kong. You state that the findings, trimmings and interlinings do not exceed 25% of the cost of the assembled garment.

ISSUE:

What are the classification, country of origin, and status under AGOA of the subject merchandise?

CLASSIFICATION:

The applicable subheading for the shirt will be 6205.20.2050, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for men’s or boys’ shirts: of cotton: other: other: other: with two or more colors in the warp and/or the filling: other: men’s. The general rate of duty is 19.7% ad valorem.

The shirt falls within textile category designation 340. Quota and visa status are the result of international agreements that are subject to frequent renegotiations and changes. To obtain the most current information as to whether quota and visa requirements apply to this merchandise, we suggest that you check, close to the time of shipment, the “Textile Status Report for Absolute Quotas” available at our web site at www.cpb.gov. In addition, you will find current information on textile import quotas, textile safeguard actions and related issues at the web site of the Office of Textiles and Apparel, at otexa.ita.doc.gov.

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, "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.

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.

As all of the assembly operations occur in a single country, that is, Mauritius, the shirt is considered “wholly assembled” in a single country, that is, Mauritius. As per the terms of the tariff shift requirement, country of origin is conferred in Mauritius.

STATUS UNDER THE AFRICAN GROWTH AND OPPORTUNITY ACT (AGOA):

The African Growth and Opportunity Act (AGOA) provides certain specified trade benefits for countries of sub-Saharan Africa. These benefits include duty-free treatment for certain non-textile articles previously excluded from preferential treatment under the Generalized System of Preferences, and duty- and quota-free treatment for certain textile and apparel articles which meet the requirements set forth in Section 112 of the Act (codified at 19 U.S.C. 3721). Beneficiary countries are designated by the President of the United States after having met eligibility requirements set forth in the AGOA. Once designated, a beneficiary country is entitled to the duty-free treatment for the designated non-textile articles determined not to be import-sensitive in the context of imports from the beneficiary sub-Saharan African countries.

A second designation by the United States Trade Representative (USTR), published in the Federal Register, that a beneficiary country has taken the measures required by the Act to prevent unlawful transshipment and has adopted an effective visa system, is necessary before a beneficiary country may enjoy the duty- and quota-free benefits extended to textile and apparel articles under the Act.

Mauritius was designated a beneficiary country by Presidential Proclamation 7350, published in the Federal Register on March 12, 2002, 66 Fed. Reg. 14425. It was determined to be eligible for textile benefits under the AGOA by the USTR effective March 7, 2001. See, 66 Fed. Reg. 14425, dated March 12, 2001.

The provisions implementing the textile provisions of the AGOA in the Harmonized Tariff Schedule of the United States (HTSUS) are contained, for the most part, in subchapter XIX, Chapter 98, HTSUS. The regulations pertinent to the textile provisions of the AGOA may be found at §§ 10.211 through 10.217 of the Customs Regulations (19 CFR 10.211 through 10.217).

Subheading 9819.11.21, HTSUS, is the provision commonly referred to as the "NAFTA short supply” provision. It was created for the entry of articles eligible for preferential treatment under section 112(b)(5)(A) (see Presidential Proclamation 7350, dated October 2, 2000, published in the Federal Register on October 4, 2000 (65 Fed. Reg. 59327)). Subheading 9819.11.21, HTSUS, provides for the duty-free entry of: Apparel articles both cut (or knit-to-shape) and sewn or otherwise assembled in one or more such countries from fabrics or yarn that is not formed in the United States or a beneficiary country, provided that such apparel articles of such fabrics or yarn would be considered an originating good under the terms of general note 12(t) to the tariff schedule without regard to the source of the fabric or yarn if such apparel article had been imported from the territory of Canada or the territory of Mexico directly into the customs territory of the United States.

Accordingly, if an apparel article is "of " a fabric that is considered to be a "short supply" fabric under GN12 (t), it is considered to be an originating good providing it meets the other applicable requirements of GN 12(t).

General Note 12 (t), Chapter 62, Subheading Rule to Part 30, HTSUSA, provides that men’s and boys’ shirts, of cotton (subheading 6205.20) shall be considered to originate if they are both cut and assembled in the territory of one or more of the NAFTA parties and if the fabric of the outer shell, exclusive of collars or cuffs, is wholly of one or more of the following:

(f) Fabrics of subheadings 5208.42 or 5208.49, not of square construction, containing more than 85 warp ends and filling picks per square centimeter, of average yarn number exceeding 85 metric;

Based on the information you have submitted, the fabric at issue is a fabric of subheading 5208.42, HTSUS, is not of square construction, contains more than 85 warp ends and filling picks per square centimeter and is of an average yarn number exceeding 85 metric. Accordingly, the fabric used to produce the shirt is considered a short supply fabric and the shirt is eligible for preferential treatment under the AGOA.

HOLDING:

The country of origin of the shirt is Mauritius. Based on the information submitted, the shirt meets the criteria set forth in General Note 12(t) 62.30, subheading note (f) and is eligible for duty free treatment under subheading 9819.11.21, HTSUSA, provided all requirements are met.

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 Mary Ryan at 646-733-3271.

Sincerely,

Robert B. Swierupski
Director,

Previous Ruling Next Ruling

See also: