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NY L87395




September 14, 2005

CLA-2-RR:NC:TA:N3:356 L87395

CATEGORY: CLASSIFICATION

Mr. Hong Y. Shen
Weilai America Co., Ltd.
1410 Broadway, Suite 304
New York, NY 10018

RE: Classification and country of origin determination for men’s and women’s knit garments; 19 CFR 102.21(c)(3); knit to shape.

Dear Mr. Shen:

This is in reply to your letter dated August 16, 2005, requesting a classification and country of origin determination for two styles of knit garments that will be imported into the United States. You state that the countries of production will be Kyrgyzstan and China. You have provided samples of the garment parts as they are knit and sent to China for assembly and samples of the finished garments as they will be imported into the United States.

FACTS:

Style 5632G is a men’s pullover garment constructed from 55% cotton, 45% acrylic, jersey knit fabric that measures 12 stitches per two centimeters counted in the horizontal direction. Style 5632G has a rib knit mock turtleneck, long sleeves with rib knit cuffs, and a rib knit bottom.

The front panel has a rib knit self-start bottom, self-finished sides, full fashion marks at the armholes, and a clear and continuous line of demarcation at the neckline that is formed by a change in knit pattern. The back panel has a rib knit self-start bottom, self-finished sides, and full fashion marks at the armholes. The sleeves have rib knit self-start cuffs, self-finished sides, and full fashion marks at the armholes.

Style GL541077 is a women’s pullover garment constructed from 49% rayon, 33% cotton, 18% nylon jersey knit fabric that measures more than 9 stitches per two centimeters counted in the horizontal direction. Style GL541077 has a low, round front neckline finished with self-fabric capping, long sleeves with rib knit cuffs, beaded woven fabric appliqués near the right front neckline, and a rib knit bottom.

The front panel has a rib knit self-start bottom, self-finished sides, full fashion marks at the armholes, and partial lines of demarcation at the neckline. The back panel has a rib knit self-start bottom, self-finished sides, full fashion marks at the armholes, and partial lines of demarcation at the neckline. The sleeves have rib knit self-start cuffs, self-finished sides, and full fashion marks at the armholes. The partial lines of demarcation at the front and rear necklines are not continuous along the entire neckline.

The manufacturing operations for Style 5632G are as follows:

KYRGYZSTAN:
The yarn is purchased
The front and back panels and the sleeves are knit and inspected The turtleneck collar is knit

CHINA:
The front neckline is cut along the clear and continuous line of demarcation The front and the back panels, the sleeves and the neckband are assembled by linking and/or looping to form the finished garment The labels are attached and the garment is finished and packed for export

The manufacturing operations for Style GL541077 are as follows:

KYRGYZSTAN:
The yarn is purchased
The front and back panels and the sleeves are knit and inspected

CHINA:
The embroidered appliqués are cut and sewn and the beading is applied The front and back necklines are cut along the partial lines of demarcation The front and the back panels, the sleeves and the neck capping are assembled by linking and/or looping to form the finished garment The labels are attached and the garment is finished and packed for export

ISSUE:

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

CLASSIFICATION:

The applicable subheading for Style 5632G will be 6110.20.2065, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for sweaters, pullovers, ... and similar articles, knitted or crocheted: of cotton: other: other: other: men’s or boys’. The rate of duty is 16.5% ad valorem. The garment falls within textile category designation 338.

The applicable subheading for Style GL541077 will be 6110.30.3055, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for sweaters, pullovers, ... and similar articles, knitted or crocheted: of man-made fibers: other: other: other: women’s or girls’. The rate of duty is 32% ad valorem. The garment falls within textile category designation 639.

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: "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) 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.

If the good is knit to shape, a change to 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.

The two styles are classifiable as knit pullovers in heading 6110, HTSUS. Section 102.21 (e) requires a tariff shift to headings 6101 through 6117 from any heading outside that group. In this case, a tariff shift to heading 6110, HTSUS, occurs in China, but from components that are classifiable in heading 6117, HTSUS. As heading 6117, HTSUS, is excepted by Section 102.21 (c)(2), the tariff shift is not applicable.

Section 102.21(c)(3) applies where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1) or (2) and where the merchandise consists of either a good that was knit to shape or (with the exception for goods of certain specifically enumerated headings), was wholly assembled in a single country, territory, or insular possession.

Section 102.21 (c)(3)(i) provides the following:

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; ...

Section 102.21 (b) states that:

(3) KNIT TO SHAPE: The term “knit to shape” applies to any good of which 50 percent 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, with no consideration being given to patch pockets, appliques, or the like. Minor cutting, trimming, or sewing of those major parts will not affect the determination of whether a good is “knit to shape”.

(4) 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.

In the case of Style 5632G, the front panel is knit to shape with a rib knit self-start bottom, self-finished sides, full fashion marks at the armholes, and a front neckline that is marked by a clear and continuous line of demarcation created by a change in knit pattern. The back panel is knit to shape with a rib knit self-start bottom, self-finished sides, and full fashion marks at the armholes. The minor trimming at the rear neckline does not affect the status of the rear panel as knit to shape. The sleeves are knit to shape with a rib knit self-start bottom, self-finished sides, and full fashion marks at the armholes. Consequently, Style 5632G is considered “knit to shape” as the term is defined above.

In the case of Style GL541077, the front and back panels and the sleeves have been knit to shape with rib knit self-start bottoms, self-finished sides and full fashion marks at the armholes. The partial lines of demarcation at the front and back necklines do not affect the status of the panels as knit to shape. See Headquarters ruling 961981 JB of September 3, 1998. Consequently, Style GL541077 is considered “knit to shape” as the term is defined above.

Accordingly, Section 102.21 (c)(3)(i) is applicable to the subject merchandise. The country of origin of Styles 5632G and GL541077 is Kyrgyzstan, the single country where the garments are knit to shape.

HOLDING:

The country of origin of Styles 5632G and GL541077 is Kyrgyzstan. 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.

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 sections 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,
National Commodity

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