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NY N022105




February 13, 2008

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

CATEGORY: CLASSIFICATION

Ms. Brenda A. Jacobs
Sidley Austin LLP
1501 K Street, N.W.
Washington, D.C. 20005

RE: Classification and country of origin determination for men’s woven pants and shorts; 19 CFR 102.21 (c)(4); most important assembly

Dear Ms. Jacobs:

This is in reply to your letter dated January 15, 2008, on behalf of Tak Kei Garment Factory Ltd., requesting a classification and country of origin determination for men’s woven pants and men’s woven shorts that will be imported into the United States. You state that the assembly operations occur in two different countries, China and Macao. You have provided samples of the cut components, the partially assembled components as they complete each stage of assembly, and the finished garments as they will be imported into the United States. As requested, your samples will be returned.

Style R81SV10-HP is a pair of men’s pants constructed from 100% cotton, woven twill fabric. The garment has a flat waistband with five belt loops; a fly front opening with a zipper closure and two metal buttons on the waistband; two front pockets; a coin pocket inside the right front pocket; a screen print design on the inside and outside of the right leg; two rear patch pockets; and hemmed legs.

Style R81SV10-HS is a pair of men’s shorts constructed from 100% cotton, woven twill fabric. The garment has a partially elasticized waistband with an inside drawstring; six belt loops on the waistband; a fly front opening with a zipper closure and a button on the waistband; two side seam pockets; a screen print design on the right leg; a rear patch pocket; and hemmed legs.

The manufacturing operations for the pants, Style R81SV10-HP, are as follows:

CHINA:
The fabric is cut into component parts;
The three front pockets and two back pockets are attached; The left fly is formed and the full zipper is attached to the left front panel; The right leg sections are joined at the side seam to form the right leg panel; The right leg panels are printed on the outside; The right leg panels are printed on the inside; The labels are attached.

MACAO:
The left leg sections are joined at the side seam to form the left leg panel; The zipper is attached to the right front panel and the front rise is sewn closed; The back rise is sewn closed;
The inseams are sewn closed.

CHINA:
The waistband is attached;
The belt loops are attached;
The leg bottoms are hemmed;
The garment is washed, finished, inspected, and packed for export.

The manufacturing operations for the shorts, Style R81SV10-HS, are as follows:

CHINA:
The fabric is cut into component parts;
The side pockets and back pocket are attached; The left fly is formed and the full zipper is attached to the left front panel; The right leg sections are joined at the side seam to form the right leg panel; The right leg panels are printed on the outside; The seat patch is sewn;
The labels are attached.

MACAO:
The left leg sections are joined at the side seam to form the left leg panel; The zipper is attached to the right front panel and the front rise is sewn closed; The back rise is sewn closed;
The inseams are sewn closed.

CHINA:
The waistband is attached;
The button holes are added to the waistband; The drawstring is inserted;
The belt loops are attached;
The leg bottoms are hemmed;
The garment is washed, finished, inspected, and packed for export.

ISSUE:

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

CLASSIFICATION:

The applicable subheading for Style R81SV10-HP is in 6203.42.4016, Harmonized Tariff Schedule of the United States, (HTSUS), which provides for: men’s or boys’ trousers and shorts , of cotton: other: other: other: men’s trousers and breeches: other. The general rate of duty is 16.6% ad valorem.

The applicable subheading for Style R81SV10-HS is in 6203.42.4051, Harmonized Tariff Schedule of the United States, (HTSUS), which provides for: men’s or boys’ trousers and shorts , of cotton: other: men’s shorts. The general rate of duty is 16.6% 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/.

Styles R81SV10-HP and R81SV10-HS fall within textile category designation 347. 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.

Although the garment 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 garments are 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 Styles R81SV10-HP and R81SV10-HS, the assembly processes in Macao consisting of sewing the left side seam, attaching the zipper to the right front panel and sewing the front rise, sewing the back rise, and sewing the inseams constitute the most important assembly processes.

Accordingly, under Section 102.21 (c)(4), the country of origin of Styles R81SV10-HP and R81SV10-HS is Macao, the country in which the most important assembly processes occur.

HOLDING:

The country of origin of Styles R81SV10-HP and R81SV10-HS is Macao. Based upon international textile trade agreements, products of Macao are not presently subject to visa requirements or 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,

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