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NY L86175




August 3, 2005

CLA2-RR:NC:3:353 L86175

CATEGORY: CLASSIFICATION

Ms. Carolyn B. Malina
Lands’ End, Inc.
5 Lands’ End Lane
Dodgeville, WI 53595

RE: Classification, country of origin determination and eligibility for Duty-Free treatment for products of a Qualifying Industrial Zone of a scarf; 19 CFR 102.21(c)(2); tariff shift, General Note 3(a)(v).

Dear Ms. Malina:

This is in reply to your letter dated July 1, 2005, requesting classification, a country of origin determination and eligibility for Duty-Free treatment for products of a Qualifying Industrial Zone (QIZ) of a scarf, which will be imported into the United States. As requested, the sample will be returned to you.

FACTS:

The subject merchandise consists of a Style # 96022 Thermacheck Scarf constructed of knit 100% polyester fabric. The single piece scarf measures approximately 10 inches x 56 inches with rounded edges.

The manufacturing operations for the Style # 96022 Thermacheck Scarf are as follows:

The fabric is formed and finished in Taiwan The woven logo label is made in Hong Kong The thread is formed in Israel
The carton and carton cover are made in Jordon The fabric is cut to shape, edges are sewn, label is attached, and packaging into a polybag is accomplished in a QIZ in Jordan

ISSUE:

What are the classification and country of origin of the subject merchandise? Is the merchandise produced in a QIZ eligible for duty-free treatment?

CLASSIFICATION:

The applicable subheading for the Style # 96022 Thermacheck Scarf will be 6117.10.2030, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for “Other made up clothing accessories, knitted or crochetedShawls, scarves, mufflers, mantillas, veils and the like: Of man-made fibers, Other.” The rate of duty will be 11.3 percent 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at 19 U.S.C. 3592), enacted on December 8, 1994, provided rules of origin for textiles and apparel entered, or withdrawn from warehouse for consumption, on and after July 1, 1996.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 (2) If the good is not knit to shape and does not consist of two or more component parts, except for goods provided for in paragraph (e)(2) of this heading

Goods of 6117.10 are goods provided for in paragraph (e)(2). Paragraph (e)(2) states:

(2) For goods of HTSUS headings 6213 and 6214 and HTSUS subheadings 6117.10, 6302.229404.90.85 and 9404.90.95, except for goods classified under subheadings as of cotton or of wool or consisting of fibers blends containing 16 percent or more by weight of cotton:

(i) The country of origin is the country territory, or insular possession in which the fabric comprising the good was both dyed and printed accompanied by two or more of the following finishing operations

(ii) If the country cannot be determined under (i) above, except for goods of HTSUS subheading 6117.10 that are knit to shape or consist of two or more component parts, the country of origin is the country, territory, or insular possession in which the fabric comprising the good was formed by the fabric making process.

The scarf is made of 100% polyester fabric and does not fall under the (e)(2) exceptions. The item is not dyed and printed as noted in (e)(2)(i). The good is not knit to shape and does not consist of two or more component parts. Therefore, country of origin is determined by application of paragraph (2)(e)(ii), and country of origin is conferred in Taiwan.

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.

To determine whether a textile or apparel article is considered to be a "product of" the West Bank, Gaza Strip or a QIZ, it is necessary to refer to the rules of origin for textile and apparel products set forth in 19 U.S.C. §3592 as implemented by section 102.21, Customs Regulations (19 C.F.R. §102.21). Pursuant to section 334 of the Uruguay Round Agreements Act, these rules of origin (published in the Federal Register on September 5, 1995 (60 F.R. 46188)) became effective for textile or apparel products entered, or withdrawn from warehouse, for consumption on or after July 1, 1996. Thus, except for the purpose of determining whether a good is a product of Israel (see 19 C.F.R. 102.21(a)), the country of origin of a textile or apparel product is determined by sequential application of the general rules set forth in paragraphs (c)(1) through (5) of 19 C.F.R. §102.21.

Under the rules of origin for textile products implemented by section 102.21, Customs Regulations (19 C.F.R. §102.21), the country of origin of the Style # 96022 Thermacheck Scarf is Taiwan. As the article is not considered a “product of” the QIZ, it is not eligible for treatment as a product of a Qualifying Industrial Zone (QIZ).

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 Kenneth Reidlinger at 646-733-3053.

Sincerely,

Robert B. Swierupski
Director,

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