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NY N021317




January 16, 2008

CLA-2-61:OT:RR:NC:TA:359

CATEGORY: CLASSIFICATION

TARIFF NO.: 6110.20.2079; 6110.30.3059

Ms. Hannah Chan
Business Faith International Limited
A8 & A13 7/F, Blk A
Hong Kong Ind. Centre
No. 489-491 Castle Peak Road
Kowloon, Hong Kong

RE: Classification and country of origin determination of a women’s pullover; Duty-Free treatment for products of the West Bank, Gaza Strip, or a Qualifying Industrial Zone; United States - Israel Free Trade Agreement; General Note 3(a)(v); 19 CFR (c)(4)

Dear Ms. Chan:

This is in reply to your letter dated December 24, 2007, requesting classification and eligibility for preferential duty treatment for garments that may be produced in a Qualifying Industrial Zone (QIZ) in Jordan. You state that the manufacturing operations will occur in China and the Irbid-Al-Hassan Industrial Estate (QIZ), Jordan.

FACTS:

Style JASMKxx is a women’s cut and sewn short sleeve pullover constructed of a 96% cotton 4% spandex knitted fabric. The outer surface of the fabric measures more than 9 stitches per 2 centimeters in the direction that the stitches were formed. Both the front and back panels of the garment are made of three panel construction with princess seams. The pullover features a modified v-shaped neckline with a woven placket, a pointed collar, two piece vented short sleeves, side seams with woven fabric trimmed slit bottoms, and a hemmed garment bottom. You indicated that the garment will also be manufactured from fabrics with different fiber content such as 100 percent cotton, cotton/polyester, 100 percent polyester and polyester/spandex. Also the style number may vary depending upon the buyer. Assembly of the garment will be completed in a qualified industrial zone in Jordan and shipped directly to the United States.

The manufacturing processes are as follows:

CHINA:

Cut fabric into components (collar, sleeves, and body panels). Sew the collar. Sew the princess seams of the front and back body panels.

JORDAN (QIZ):

Apply heat transfer label. Sew sleeve components together. Open front neckline. Sew the placket tape to the neckline. Attach the front and back body panels at the shoulders. Sew the back neck tape and collar to the garment body. Attach the sleeves to the garment body. Sew the side seams and underarm seams. Sew the content/care labels. Sew the side slits. Hem the bottom and sleeves. Trimming, inspection, pressing, and packing.

CLASSIFICATION:

The applicable subheading for this style constructed of 96% cotton and 4% spandex as well as this style constructed of cotton blends as stated above where the cotton predominates by weight will be 6110.20.2079, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Sweatersand similar articles, knitted or crocheted: Of cotton: OtherOther: Other: Women’s: other. The duty rate will be 16.5% ad valorem.

The applicable subheading for this style constructed of 100% polyester as well as this style constructed of polyester blends as stated above where the polyester predominates by weight will be 6110.30.3059, HTSUS, which provides for Sweaters , . . and similar articles, knitted or crocheted: Of man-made fibers: Other . . . Other: Other: Women’s or girls’: Other. The duty rate will be 32% 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 World Wide Web at http://www.usitc.gov/tata/hts/.

This style constructed of 96% cotton and 4% spandex as well as this style constructed of cotton blends as stated above where the cotton predominates by weight falls within textile category 339. This style constructed of 100% polyester as well as this style constructed of polyester blends as stated above where the polyester predominates by weight falls within textile category 639. 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.

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.      General Note 3(a)(v)(G), HTS, defines a "qualifying industrial zone" as any area that: "(1) encompasses portions of the territory of Israel and Jordan or Israel and Egypt; (2) has been designated by local authorities as an enclave where merchandise may enter without payment of duty or excise taxes; and (3) has been designated by the U.S. Trade representative in a notice published in the Federal Register as a qualifying industrial zone." You have indicated that the goods will be produced in a formally designated qualifying industrial zone.      

Treasury Decision 98-62 dated July 13, 1998, determined that pursuant to the agreement between the Governments of Israel and Jordan, and by mutual consent of the U.S. and Israel, Customs will exclusively apply the textile and apparel rules of origin set forth in 19 C.F.R. §102.21 in determining the country of origin of a textile or apparel product processed in a qualifying industrial zone.      

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":

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 not knit to shape and does not consist of two or more component parts, a change to heading 6101 through 6117 from any heading outside that group, except from heading 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408, 5512 through 5516, 5806, 5809 through 5811, 5903, 5906 through 5907, and 6001 through 6002, and subheading 6307.90, and provided that the change is the result of a fabric-making process.

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 submitted garment is not knit to shape and consists of two or more components. As the garment is assembled in more than one country, territory or insular possession, the terms of the tariff shift are not met, and, therefore, 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":      (i) 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      (ii)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.

As the subject merchandise is neither knit to shape nor wholly assembled in a single country, territory or insular possession, 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".      The most important assembly operations are sewing the sleeve components together, attaching the front and back body panels at the shoulders, sewing the back neck tape and collar to the garment body, attaching the sleeves to the garment body, and sewing the side seams and underarm seams. Accordingly, the country of origin is Jordan.

STATUS UNDER THE UNITED STATES-ISRAEL FREE TRADE AGREEMENT:

Pursuant to the authority conferred by section 9 of the U.S.-Israel Free Trade Area Implementation Act of 1985 (19 U.S.C. §2112 note), the President issued Proclamation No. 6955 dated November 13, 1996 (published in the Federal Register on November 18, 1996 (61 Fed. Reg. 58761)), which modified the Harmonized Tariff Schedule of the United States (HTSUS) (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 a qualifying industrial zone, provided certain requirements are met. Such treatment was effective for products of the West Bank, Gaza Strip or a qualifying industrial zone entered or withdrawn from warehouse for consumption on or after November 21, 1996.

Under General Note 3(a)(v), HTSUS, articles the products of the West Bank, Gaza Strip or a qualifying industrial zone which are imported directly to the U.S. from the West Bank, Gaza Strip, a qualifying industrial zone or Israel qualify for duty-free treatment, provided the sum of 1) the cost or value of materials produced in the West Bank, Gaza Strip, a qualifying industrial zone or Israel, plus 2) the direct costs of processing operations performed in the West Bank, Gaza Strip, a qualifying industrial zone or Israel, is not less than 35% of the appraised value of such articles when imported into the U.S. An article is considered to be a product of the West Bank, Gaza Strip or a qualifying industrial zone if it is either wholly the growth, product or manufacture of one of those areas or a new and different article of commerce that has been grown, produced or manufactured in one of those areas.

With respect to the requirement that the articles be imported directly, General Note 3(a)(v) (B)(1) provides that:

Articles are "imported directly" for purposes of this paragraph if: (1) they are shipped directly from the West Bank, the Gaza Strip, a qualifying industrial zone or Israel into the United States without passing through the territory of any intermediate country;

It cannot be ascertained whether the 35% value content requirement is met until the "appraised value" of the merchandise is determined at the time of entry into the United States.

HOLDING:

Based on the information provided, the country of origin of the garment is Jordan.

Based upon the information submitted, the garments will be considered a product of the Irbid al-Hassan QIZ, Jordan and will be eligible for preferential duty treatment under General Note 3 (a)(v), HTSUS, assuming that the garments are imported directly from the QIZ, Jordan to the United States and the 35% value content requirement is satisfied. A determination will be made at the time of entry of the merchandise into the United States, whether the above requirements are met.

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 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 Francine Vivona-Brock at 646-733-3049.

Sincerely,

Robert B. Swierupski
Director,

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