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NY M87557




November 21, 2006

CLA-2-RR:NC:TA:N3:356 M87557

CATEGORY: CLASSIFICATION

Ms. Kay Morrell
JCPenney Purchasing Corporation
6501 Legacy Drive MS2222
Plano, TX 75024-3698

RE: Classification and country of origin determination for men’s woven garments; 19 CFR 102.21(c)(2); tariff shift; status under the North American Free Trade Agreement (NAFTA) of men’s woven garments; Article 509.

Dear Ms. Morrell:

This is in reply to your letter dated October 13, 2006, concerning the classification, country of origin, and NAFTA eligibility of men’s woven garments that will be imported into the United States. You state that the manufacturing operations will occur in Malaysia and Mexico and you have provided a sample of the finished garment for our review. As requested, your sample is being returned.

FACTS:

Style 3305 is a men’s shirt constructed from 55% cotton, 45% polyester woven broadcloth fabric. The garment features a point collar; a full front opening with eight button closures; long sleeves; a patch pocket on the left chest; and a hemmed bottom. You state that the garment will have the specific neck and sleeve sizing required for dress shirts.

The manufacturing operations are as follows:

MALAYSIA:
The fabric is woven into rolls of cloth
The fabric is bleached or dyed and a stain repellant and stain resistant finish is applied

MEXICO:
The fabric is cut into component parts
The cut to shape parts are assembled into completed garments The garments are inspected and packed for export to the United States

ISSUE:

What are the classification, country of origin, and NAFTA eligibility of the subject merchandise?

CLASSIFICATION:

The applicable subheading for the shirt will be 6205.20.2026, Harmonized Tariff Schedule of the United States (HTSUS), which provides for men’s or boys’ shirts, of cotton: other: dress: other: men’s. The duty rate is 19.7% 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 shirt falls within textile category designation 340. With the exception of certain products of China, quota/visa requirements are no longer applicable for merchandise which is the product of World Trade Organization (WTO) member countries. The textile category number above applies to merchandise produced in non-WTO member-countries. Quota and visa requirements are the result of international agreements that are subject to frequent renegotiations and changes. To obtain the most current information on quota and visa requirements applicable to this merchandise, we suggest you check, close to the time of shipment, the “Textile Status Report for Absolute Quotas” which is available on our web site at www.cbp.gov. For current information regarding possible textile safeguard actions on goods from China and related issues, we refer you to the web site of the Office of Textiles and Apparel of the Department of Commerce 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

6201-6208 If the good consists of two or more component parts, a change to an assembled good of heading 6201 through 6208 from unassembled components, provided that the change is the result of the good being wholly assembled in a single country, territory, or insular possession.

Paragraph (b) (6) defines “wholly assembled” as:

The term “wholly assembled” when used with reference to a good means that all components, of which there must be at least two, preexisted in essentially the 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, appliques, 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.

The submitted garment consists of two or more parts. As all of the assembly operations occur in Mexico, the garment is considered “wholly assembled” in a single country, that is, Mexico. As per the terms of the tariff shift requirement, country of origin is conferred in Mexico.

STATUS UNDER THE NORTH AMERICAN FREE TRADE AGREEMENT (NAFTA):

You state in your letter that the 55% cotton, 45% polyester broadcloth fabric will be woven in Malaysia. The fabric contains 116 single yarns per inch in the warp and 76 single yarns per inch in the filling. It is manufactured using 45/1 c.c. yarns in both the warp and filling. You state that the buttons are produced in the United States and the labels are produced in China.

General Note 12(b), HTSUS, sets forth the criteria for determining whether a good is originating under the NAFTA. General Note 12(b), HTSUS, (19 U.S.C. § 1202) states, in pertinent part, that

For the purposes of this note, goods imported into the customs territory of the United States are eligible for the tariff treatment and quantitative limitations set forth in the tariff schedule as "goods originating in the territory of a NAFTA party" only if--

(i) they are goods wholly obtained or produced entirely in the territory of Canada, Mexico and/or the United States; or

(ii) they have been transformed in the territory of Canada, Mexico and/or the United States so that--

(A) except as provided in subdivision (f) of this note, each of the non-originating materials used in the production of such goods undergoes a change in tariff classification described in subdivisions (r), (s) and (t) of this note or the rules set forth therein, or

(B) the goods otherwise satisfy the applicable requirements of subdivisions (r), (s) and (t) where no change in tariff classification is required, and the goods satisfy all other requirements of this note; or

(iii) they are goods produced entirely in the territory of Canada, Mexico and/or the United States exclusively from originating materials; or

(iv) they are produced entirely in the territory of Canada, Mexico and/or the United States but one or more of the nonoriginating materials falling under provisions for "parts" and used in the production of such goods does not undergo a change in tariff classification because--

(A) the goods were imported into the territory of Canada, Mexico and/or the United States in unassembled or disassembled form but were classified as assembled goods pursuant to general rule of interpretation 2(a), or

(B) the tariff headings for such goods provide for and specifically describe both the goods themselves and their parts and is not further divided into subheadings, or the subheadings for such goods provide for and specifically describe both the goods themselves and their parts,
provided that such goods do not fall under chapters 61 through 63, inclusive, of the tariff schedule, and provided further that the regional value content of such goods, determined in accordance with subdivision (c) of this note, is not less than 60 percent where the transaction value method is used, or is not less than 50 percent where the net cost method is used, and such goods satisfy all other applicable provisions of this note.

In General Note 12(t), Chapter 62, the subheading rule for men’s woven shirts states that: Men’s or boys’ shirts of cotton (subheading 6205.20) or of man-made fibers (subheading 6205.30) shall be considered to originate if they are both cut and assembled in the territory of one or more of the parties and if the fabric of the outer shell, exclusive of collars or cuffs, is wholly of one or more of the following:

(c) Fabrics of subheadings 5210.21 or 5210.31, not of square construction, containing more than 70 warp ends and filling picks per square centimeter, of average yarn number exceeding 70 metric;

Based upon the samples and the information you submitted, the fabric that will be used for Style 3305 is classified in subheading 5210.21 and 5210.31, HTSUS, is not of square construction, and contains more than 70 warp ends and filling picks per square centimeter, of average yarn number exceeding 70 metric. Consequently, Style 3305 is considered to originate for purposes of eligibility under the NAFTA and will be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations and agreements.

HOLDING:

The country of origin of the shirt is Mexico. Style 3305 is considered to originate for purposes of eligibility under the NAFTA and will be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations and agreements.

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 181 of the Customs Regulations (19 C.F.R. 181) as well as 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 Customs, it is requested 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. 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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