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NY M84295




July 19, 2006

CLA-2-RR:NC:TA:N3:356 M84295

CATEGORY: CLASSIFICATION

Ms. Rhoda A. Salus
Sandler, Travis & Rosenberg, P.A.
The Waterford
5200 Blue Lagoon Drive
Miami, FL 33126-2022

RE: Classification and country of origin determination for two styles of men’s knit shorts; 19 CFR 102.21 (c)(4); most important assembly operation; 19 CFR 102.21 (c)(5); last important assembly or manufacturing operation

Dear Ms. Salus:

This is in reply to your letter dated June 14, 2006 (your reference 021837.10000), submitted on behalf of Nanjing USA Inc., requesting a classification and country of origin determination for two styles of men’s knit shorts that will be imported into the United States. You state that the assembly operations occur in two different countries, China (Country “A”) and Malaysia (Country “B”). You have provided samples of the partially assembled garments as they leave China (Country “A”) prior to the final assembly operations in Malaysia (Country “B”). As requested, your samples are being returned.

FACTS:

Style A106 is a pair of men’s shorts that are constructed from 100% polyester, finely knit mesh fabric. The pull-on shorts have a tunnel elastic waistband with a drawstring; side seam pockets; and hemmed legs.

Style A112 is a pair of men’s shorts that are constructed from 100% polyester, finely knit mesh fabric. The pull-on shorts have a full liner of 100% polyester, finely knit fabric; a tunnel elastic waistband with a drawstring; side seam pockets; and hemmed legs.

The manufacturing operations for Style A106 are as follows:

CHINA (COUNTRY A):

The fabric is cut into component parts
The back rise is sewn
The side seams are sewn
The side pockets are formed and attached
The waistband with elastic and drawstring is formed and attached

MALAYSIA (COUNTRY B):

The front rise is sewn
The inseams are sewn
The legs are hemmed
The garments are trimmed, inspected and packed for export

The manufacturing operations for Style A112 are as follows:

CHINA (COUNTRY A):

The fabric is cut into component parts
For the shell:
The back rise is sewn
The side seams are sewn
The side pockets are formed and attached
For the liner:
The back rise is sewn
The side seams are sewn
The front rise is sewn
The inseams are sewn
The waistband with elastic and drawstring is formed and attached joining the shell and the liner

MALAYSIA (COUNTRY B):

The front rise of the shell is sewn
The inseams of the shell are sewn
The legs of the shell and the liner are hemmed The garments are trimmed, inspected and packed for export

ISSUE:

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

CLASSIFICATION:

The applicable subheading for Styles A106 and A112 will be 6103.43.1550, Harmonized Tariff Schedule of the United States (HTSUS), which provides for men’s or boys’ breeches and shorts (other than swimwear), knitted or crocheted: of synthetic fibers: other: shorts: men’s. The rate of duty is 28.2% ad valorem.

Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the World Wide Web at http://www.usitc.gov/tata/hts/.

The garment falls within textile category designation 647. 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.

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.

Although the garment is not knit to shape and consists of two or more component parts, it is not wholly assembled in a single country, territory or insular possession. Accordingly, as the terms of the tariff shift are not met, 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”:

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

Except for goods of heading 5609, 5807, 5811,6213, 6214, 6301 through 6306, and 6308, and subheadings 6209.20.5040, 6307.10, 6307.90, and 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.

Since the garment is neither knit 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 the case of Style A106, the single country, territory or insular possession in which the most important assembly or manufacturing processes occurred cannot be determined. Accordingly, Section 102.21 (c)(4) is not applicable for Style A106.

In the case of Style A112, the assembly processes in China consisting of sewing the back rise of the shell and the liner, sewing the side seams of the shell and the liner, sewing the inseams of the liner, sewing the front rise of the liner, attaching the pockets, and attaching the waistband constitute the most important assembly processes.

Accordingly, under Section 102.21 (c)(4), the country of origin of Style A112 is China (Country “A”), the country in which the most important assembly processes occurred.

Section 102.21 (c)(5) states “Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1), (2), (3) or (4) of this section, the country of origin of the good is the last country, territory, or insular possession in which an important assembly or manufacturing process occurred.”

For Style A106, the last country in which an important assembly process occurred is Malaysia (Country “B”), the country in which the front rise is sewn and the inseams are sewn. Accordingly, for Style A106, the country of origin is Malaysia (Country “B”).

HOLDING:

The country of origin of Style A106 is Malaysia (Country “B”). The country of origin of Style A112 is China (Country “A”). Based upon international textile trade agreements, products of Malaysia are not presently subject to visa requirements or quota restraints; products of China are presently subject to visa requirements and 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 Mary Ryan at 646-733-3271.

Sincerely,

Robert B. Swierupski
Director,
National Commodity

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