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NY L81277




December 20, 2004

CLA2-RR:NC:TA:N3:358 L81277

CATEGORY: CLASSIFICATION

Ms. Sherri Desjardins
Menlo Worldwide Trade services
1555 West 23rd Street
P.O. Box 610715
Dallas, Texas 75261

RE: Country of origin determination; 19 CFR 102.21(c)(2); tariff shift; Classification and status under the North American Free Trade Agreement (NAFTA) of girl’s knit garments produced in Mexico; Article 509

Dear Ms. Desjardins:

This is in reply to your letter dated December 13, 2004, on behalf of Oshkosh B’Gosh Incorporated, Oshkosh, Wisconsin, in which you requested the classification, country of origin determination and originating status under the NAFTA for a girl’s knit garment, which will be produced in Mexico and imported into the United States. You have provided a sample of the garment, which will be returned, as you have requested.

FACTS:

The submitted sample, Style 255Q255, is a cotton knit pullover. The body is made of one by one rib knit fabric and has a vee style neck opening, short hemmed raglan sleeves and a hemmed bottom. The garment body is of pieced construction. All seams, except for the capped neckline are sewn with contrast color overlock or cover stitching. The words Oshkosh B’Gosh ™ are embroidered below a star shaped appliqué that is affixed to the chest area. A kangaroo style pocket with scoop openings is sewn to the front bottom of the garment.

You advise that, except for the poplin fabric, all material is NAFTA originating and that the fabric components will be shipped to Mexico for cutting and assembly.

ISSUE:

What are the classification, country of origin and NAFTA status of the garment?

CLASSIFICATION:

The applicable subheading for Style 255Q255 will be 6110.20.2075, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for sweaters, pullovers, sweatshirts, waistcoats (vests) and similar articles, knitted or crocheted: Of cotton: Other: Other: Other: Women’s or girls’. The general rate of duty will be 16.5% ad valorem.

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at 19 U.S.C. 3592), enacted on December 8, 1994, provided rules of origin for textiles and apparel entered, or withdrawn from warehouse for consumption, on and after July 1, 1996.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.

As the pullover is not knit to shape, does consist of two or more component parts and is assembled in a single country, that is, in Mexico, as per the terms of the tariff shift requirement, country of origin is conferred in Mexico.

NAFTA STATUS:

You have stated in your letter that the poplin fabric used to make the pocket is not of NAFTA origin. Therefore, we turn to the rules applicable to goods of subheading 6110.20.2075, HTSUS, where the pullover is classifiable, and which is provided for in General Note 12(t)/61.35 as follows:

“A change to headings 6109 through 6111 from any other chapter, except from headings 5106 through 5113, 5204 through 5212, 5307 through 5308 or 5310 through 5311, chapter 54, or heading 5508 through 5516 or 6001 through 6006, provided that the good is both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or more of the NAFTA parties.”

In applying the above rule, Note 12(t)/61, Chapter rule 2 must also be applied. That rule states in pertinent part as follows:

“For purposes of determining the origin of a good of this chapter, the rule applicable to that good shall only apply to the component that determines the tariff classification of the good and such component must satisfy the tariff change requirements set out in the rule for that good. “

The component that determines the tariff classification is the rib knit cotton fabric. As this fabric is NAFTA originating, Style 255Q255 qualifies for NAFTA preferential treatment, including duty free treatment, upon return to the U.S.

HOLDING

The pullover, Style 255Q255 will be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations and agreements. Because the garments are “originating” under the NAFTA, these garments are not 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 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 Bruce Kirschner at 646-733-3048.

Sincerely,

Robert B. Swierupski
Director,

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