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 L81519 - NY L81564 > NY L81554

Previous Ruling Next Ruling
NY L81554




December 29, 2004

CLA2-61:RR:NC:TA-358:L81554

CATEGORY: CLASSIFICATION

Mr. Jerry Armani
Director of Administration
Mamiye Brothers, Inc.
112 West 34th Street
New York, NY 10120-0018

RE: Classification and country of origin determination for girl’s knitwear; United States - Israel Free Trade Agreement: Products of the West Bank, the Gaza Strip and the Al Hassan Industrial Estate, Irbid, Jordan, Qualifying Industrial Zone; General Note 3(a)(v), Harmonized Tariff Schedule of the United States (HTS);19 CFR 102.21(c)(4); TD 98-62

Dear Mr. Armani:

You request a classification and country of origin determination for girl’s pull-on pants that will be imported into the United States. Your samples and their component parts are returned as requested.

FACTS:
The cotton pants, style BG5095JD, have a rib knit waistband with nonfunctional drawstring segment at the garment front and scoop pockets below the waist. The item also has sequin taping at the out seams, embroidery and appliqué work on the lower portion of one pant leg and Barbie™ embroidery below one pocket opening. It is assumed the pants are sized for girls 2 to 14.

The pants will be made in China (Country A) and Jordan (Country B). According to your submission, the manufacturing operations are as follows:

First Manufacturing Process

In the first process 100% cotton knit fabric produced in Country “A” will be cut in Country “A” into four (4) leg panels, four (4) pocket panels and one waistband panel. All four (4) leg panels will be embellished with sewn on chain sequence taping. In addition, one (1) front leg panel will have the brand embroidered near the front scoop pocket and the other one (1) front leg panel will be embroidered near the bottom with appliqués and sewn on sequins and beads. The four (4) pocket panels will be sewn together to make two (2) scoop pockets and sewn onto the two (2) front leg panels. The one (1) waistband panel will then be folded, elastic inserted and sewn; a fake drawstring will also be added. All of the five (5) components in their condition as produced in Country “A” are enclosed.

Second Manufacturing Process

The five (5) components will then be shipped to Country “B” where they will be assembled by sewing to make the finished pant. The two (2) front leg panels will be sewn together with the two (2) back leg panels and the one (1) waistband will be sewn to the waist of the pant at the same time the labels are sewn into the pant. The pant will be inspected for defects, trimmed as appropriate, and packaged for exportation to the United States.

The entire second manufacturing process will take place at the following factory within a qualifying industrial zone (QIZ).

International Business Garment Manufacturing Co., Ltd. Irbid, Jordan- Al Hassan Industrial Estate (QIZ) Tel No. 962-2-7395288, Fax No. 962-2-7395066

ISSUE:

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

CLASSIFICATION:

The applicable subheading for the girl’s knitted pants, Style BG5095JD will be 6104.62.2028, Harmonized Tariff Schedule of the United States (HTS), which provides for knitted or crocheted, trousers and breeches, of cotton, girls’, other, other. The rate of duty will be 14.9 percent ad valorem.

Girl’s cotton pants fall within textile category designation 348. 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

On December 8, 1994, the President signed into law the Uruguay Round Agreements Act. Section 334 of that Act (codified at 19 U.S.C. 3592) provides new rules of origin for textiles and apparel entered, or withdrawn from warehouse, for consumption, on and after July 1, 1996. On September 5, 1995, Customs published Section 102.21, Customs Regulations, in the Federal Register, implementing Section 334 (60 FR 46188). Thus, effective July 1, 1996, the country of origin of a textile or apparel product shall be determined by sequential application of the general rules set forth in paragraphs (c)(1) through (5) of Section 102.21.

You have noted that the production processing that is scheduled for Jordan (Country B) will occur in the Al Hassan Industrial Estate, Irbid, Jordan, a Qualifying Industrial Zone (QIZ). General Note 3(a)(v), HTS, defines a “qualifying industrial zone” as any area that (1) encompasses portions of the territory of Israel and Jordan or Israel and Egypt; (2) has been designated by local authorities as an enclave where merchandise may enter without payment of duties or excise taxes; and (3) has been designated by the United States Trade Representative in a notice published in the Federal Register as a qualifying industrial zone.

By letters dated June 30, 1997, and July 1, 1997, to the United States Trade Representative, the Governments of Jordan and Israel, respectively, requested the designation of the industrial zone in the Al Hassan Industrial Estate, Jordan, as a QIZ. Pursuant to subsequent consultations among the three governments, the Governments of Israel and Jordan entered into a written agreement dated November 16, 1997, relating to the establishment of the Al Hassan Industrial Estate, Jordan, QIZ, which included the following provision, entitled “Rules of Origin”:

The (Governments of Israel and Jordan) agree that the origin of any textile or apparel product that is processed in the Al Hassan Industrial Estate, Jordan, QIZ, regardless of the origin or place of processing of any of its inputs or materials prior to entry into, or subsequent withdrawal from the zone, will be determined solely pursuant to the rules of origin for textile and apparel products set out in Section 334 of the Uruguay Rounds Act, 19 U.S.C., Section 3592.

By notice published in the Federal Register on March 13, 1998 (63 FR 12572), the Office of the U.S. Trade Representative formally designated the Israeli-Jordanian Al Hassan Industrial Estate QIZ as a bona fide qualifying industrial zone. Treasury decision (T.D.) 98-62, published in the Federal Register on June 26, 1998, (63 FR 34960), determined that pursuant to the agreement between the Government of Israel and the Government of Jordan, and by mutual consent of the U.S. and Israel, Customs will exclusively apply the textile and apparel rules of origin set forth in 19 C.F.R., Section 102.21 in determining the country of origin of a textile or apparel product processed in the Al Hassan Industrial Estate, Jordan, QIZ.

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 "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

6104.62 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.

Section 102.21(b)(6) states:
Wholly Assembled - when used with reference to a good means that all components, of which there must be at least two, preexisted in essentially 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, appliqués, 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.

Section 102.21(b)(4) states:
Major Parts - the term “major parts” means integral components of a good but does not include collars, cuffs, waistbands, plackets, pockets, linings, paddings, trim, accessories, or similar parts.

Section 102.21(e) states that the good must be assembled in a single country. However, in this instance, for the submitted article, the assembly processing takes place in more than one country. Accordingly, as the terms of the tariff shift are not fulfilled, 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, 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 to shape 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 this case the two front leg panels, the two back leg panels and the waistband are sewn together in Country B, Jordan. The assembly operations in Jordan constitute the most important assembly processes.

Accordingly, the country of origin for the girl’s pants, style BG5095JD is Jordan, Country B.

STATUS UNDER THE UNITED STATES - ISRAEL FREE TRADE AGREEMENT

Pursuant to the authority conferred by Section 9 of the U.S. - Israel Free Trade Area Implementation Act of 1985 (19 U.S.C., Section 2112), the President issued Proclamation No. 6955 dated November 13, 1996 (Federal Register, November 18, 1996, 61 FR page 58761), which modified the HTS by creating a new General Note 3 (a) (v) to provide duty-free treatment to articles which are the product of the West Bank, Gaza Strip or of a Qualifying Industrial Zone (QIZ), provided that certain requirements are fulfilled. Such treatment affects products of the West Bank, Gaza Strip or a QIZ that are entered or withdrawn for consumption from warehouse on or after November 21, 1996.

Under General Note 3 (a) (v), HTS, articles that are the products of the West Bank, Gaza Strip or a QIZ which are imported directly to the United States from the West Bank, Gaza Strip, a QIZ or Israel, qualify for duty free treatment provided that i) the sum of (a) the cost or value of materials produced in the West Bank, the Gaza Strip, a QIZ or Israel plus (b) the direct costs of processing operations performed in the West Bank, the Gaza Strip, a QIZ or Israel is not less than 35 percent of the appraised value of such articles when imported into the United States.

An article is considered to be a product of the West Bank, Gaza Strip or a QIZ if it is wholly the growth, product or manufacture of one of those areas or if it is a new and different article of commerce that has been grown, produced or manufactured in one of those areas.

Regarding the requirement that the articles be imported directly, General Note 3 (a) (v) (B) (1) provides that: articles are “imported directly” for purposes of this paragraph if (1) they are shipped directly from the West Bank, the Gaza Strip, a QIZ, or Israel into the United States without passing through the territory of any intermediate country.

In your submission you have noted that this merchandise will be imported directly from the Al Hassan Industrial Estate, QIZ, Jordan into the United States. We note that we cannot ascertain whether or not the 35 percent value requirement is met until the appraised value of the merchandise is established. This will occur at the time of the entry of the merchandise into the United States.

HOLDING:

The country of origin of the girl’s pants, style BG5095JD is Jordan. Based upon international textile trade agreements products of Jordan are not subject to quota or the requirement of a visa.

Based upon the information submitted, the garments are considered a product of the Al Hassan Industrial Estate, QIZ, Jordan and are eligible for preferential duty treatment under General Note 3 (a) (v), HTS, provided that they are imported directly from Jordan and the 35 percent value requirement is satisfied.

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,

Previous Ruling Next Ruling

See also: