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HQ 968186




July 7, 2006

CLA-2 RR:TCM:CTF 968186 TMF

CATEGORY: CLASSIFICATION

TARIFF NO.: 6104.63.2011

Eleanore Kelly-Kobayashi, Esq.
Rode & Qualey
55 West 39th Street
New York, NY 10018

RE: Classification and Country of Origin of Women’s Knit Pants; Customs Regulations 102.21(c); Informed Compliance Publication “Knit to Shape Apparel Products”

Dear Ms. Kelly-Kobayashi:

This is in response to your letter of February 27, 2006, on behalf of your client, AC Carpi Apparel Manufacturing Ltd, requesting a binding ruling on the country of origin determination of certain women’s pants under the Harmonized Tariff Schedule of the United States Annotated (hereinafter referred to as “HTSUSA”). Your request along with three samples representing various stages of production was submitted to our office.

FACTS:

The subject pants, identified as reference number 55-1316, are made from a tubular knit fabric component that is 15 percent polyester and 85 percent polyamide. The tubular knit fabric component has a self-start waist, clear and continuous lines of demarcation indicated by a change in knit pattern delineating the pant legs, and a bottom edge that is not a selvage edge.

You describe the manufacturing operations for the pants as follows:

Hong Kong

Knit the tubular pants component with lines of demarcation on the front and back and self-start area. Dye the tubular pants component.

China

Cut tubular knit component along lines of demarcation. Sew gusset in crotch.
Bottom of pant legs will be finished (hemmed) and inseams of legs will be sewn.

You provided a sample of the knit tube (Exhibit B), sample of the tube after cutting (Exhibit C) and a sample of the finished pants (Exhibit A). You also provided sketches of the manufacturing stages from tubular component to finished garment.

ISSUE: What is the classification and country of origin of the subject women’s pants?

LAW AND ANALYSIS:

Classification

The subject pants are classifiable in subheading 6104.63.2011, HTSUSA, which provides, in pertinent part, for women’s or girls knitted or crocheted trousers of synthetic fibers.

Country of Origin

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at 19 U.S.C. 3592), enacted on December 8, 1994, provided rules of origin for textiles and apparel entered, or withdrawn from warehouse for consumption, on and after July 1, 1996.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

You stated that the subject article is knitted in Hong Kong and subsequently cut, sewn and finished in China. In this instance, the pants are not “wholly obtained or produced” as provided in Section 102.21(c)(1). Therefore, we must consider paragraph (c)(2), which 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 foreign material 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)(1) states: "The following rules will apply for purposes of determining the country of origin of a textile or apparel product under paragraph (c)(2) of this section[.]"

We have determined that the subject pants are classifiable in subheading 6104.63.2011, HTSUSA, which provides, in pertinent part, for women’s knit trousers. Paragraph (e)(1), Section 102.21, in pertinent part, states:

HTSUS Tariff shift and/or other requirements

(3) If the good is knit to shape, except for goods of subheading 6117.10 provided for in paragraph (e)(2) of this section, a change to 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. [emphasis added.]

In order to ascertain the applicability of section 102.21 (c)(2), we must resolve the issue of whether the subject pants are "knit to shape" as provided by the tariff shift rule of paragraph (e). The term "knit to shape" is defined in section 102.21 (b)(3) as:

[A]ny good of which 50 percent or more of the exterior surface area is formed by major parts [emphasis added] 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 the good is "knit to shape.

The term “major parts” is defined as “integral components of a good but does not include collars, cuffs, waistbands, plackets, pockets, linings, paddings, trim, accessories, or similar parts.” See Section 102.21(b)(4), CBP Regulations.

In this case, the subject tubular fabric component has a self-start waist, a non-selvage bottom edge and clear and continuous demarcation lines that outline the pants. Thus, the subject tubular fabric component is considered “knit to shape.” See CBP Informed Compliance Publication “What Every Member of the Trade Community Should Know About: Knit to Shape Apparel Products” (Jan. 1999, [Revised March 2006]). To determine whether the pants are knit to shape, we must determine if they contain any “major parts” and whether 50 percent or more of their surface area is formed by those major parts for purposes of determining whether the subject article is knit to shape. Id.

CBP has addressed the issue of major parts. In HQ 965962, dated January 8, 2003, CBP made a determination as to whether a knit rayon/nylon, woman’s tank-top style upper body garment, made of ten vertical components that formed the front and back of the garment was knit to shape. CBP determined that the ten vertical strips of knit fabric were not "integral components" and, therefore, not "major parts" as intended by CBP. In making this determination, CBP did not suggest a number of knit components that would qualify as integral components, but relied on its understanding of the knit to shape garment trade as reflected in the Informed Compliance Publication, supra, which states "integral components" are understood to be garment panels, generally front, back and sleeve panels that make up a principal part of the garment and the garment that they will become a part of is readily recognizable from an examination of the component.

Id.; referring to Reader’s Digest Complete Guide to Sewing at 58-59, 86-87 and 114-15, which states that panels are “integral components” because they are recognizable as significant or principal parts in the manufacture of the garment.

The subject tubular knit forms clearly recognizable pants that are outlined by identifiable demarcation lines. Furthermore, we note that the lines of demarcation have a “clearly visible change in knit pattern that [.], is continuous, and has clear starting and ending points.” See ICP supra. As the pants are knit directly to the shape used in the good and in essence, form the good, we find the pants to be a “major part”, i.e. an integral component of the good. In sum, the subject tubular knit fabric component contains readily recognizable pants that are a significant or principal part in the manufacture of the garment. See HQ 965962 supra. Thus, we find the pants to be “knit to shape” as provided by section 102.21(b)(3).

With respect to the tariff shift rule outlined above, the subject tubular knit fabric component, at the time of its formation, is an unfinished article. We refer to GRI 2(a), HTSUSA, which states, “Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as entered, the incomplete or unfinished article has the essential character of the complete or finished article.” In this case, the tubular fabric component has the essential character of pants, since they are clearly identifiable in the tubular knit fabric component. Pursuant to GRI 2(a), the tubular knit fabric component is classified in the same heading as the finished pants, in heading 6104. As there is no change in heading in China, the tariff shift rule is not met. Therefore, we must consider paragraph (c)(3), which states:

Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1) or (2) of this section:

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.

In this case, the pants were knit to shape in Hong Kong. By application of section 102.21(c)(3)(i), we find the country of origin is Hong Kong, which is the single territory where the pants were knit to shape.

HOLDING:

The subject pants are classifiable in subheading 6104.63.2011, HTSUSA, which provides, in pertinent part, for “Women’s or girlstrousers,knitted or crocheted:Of synthetic fibers: Other: Other, Trousers and breeches: Women’s Other.” The applicable visa category number is 648 with a general column one duty rate of 28.2 percent ad valorem. The country of origin of the pants is Hong Kong.

The designated textile and apparel category may be subdivided into parts. If so, the visa and quota requirements applicable to the subject merchandise may be affected. Since part categories are the result of international bilateral agreements which are subject to frequent renegotiations and changes, to obtain the most current information available, we suggest you check, close to the time of shipment, the Textile Status Report for Absolute Quotas, previously available on the Customs Electronic Bulletin Board (CEBB) which can be found on the CBP website at www.cbp.gov.

Due to the changeable nature of the statistical annotation (the ninth and tenth digits of the classification) and the restraint (quota/visa) categories, you should contact your local CBP office prior to importation of this merchandise to determine the current status of any import restraints or requirements.

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 C.F.R. 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 C.F.R. 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 CBP, it is recommended that a new ruling request be submitted in accordance with 19 C.F.R. 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.

Sincerely,

Gail A. Hamill, Chief
Tariff Classification and Marking Branch

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