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HQ 959543




August 28, 1996

CLA-2 RR:TC:TE 959543 jb

CATEGORY: CLASSIFICATION

Diane L. Weinberg, Esq.
Sandler, Travis & Rosenberg, P.A.
505 Park Avenue
New York, NY 10022-1106

RE: Country of origin determination for woven cotton pants; 19 CFR ?102.21(c)(4); most important assembly or manufacturing process

Dear Ms.Weinberg:

This is in reply to your letter dated July 26, 1996, on behalf of your clients, DNP Garment Manufacturing Sdn. Bhd., 166-A, Rifle Range Road, 11400 Penang, Malaysia; Tanaka Sdn. Bhd, Lot 57, Parit Buntar Industrial Complex, 34200 Parit Buntar, Perak, Malaysia; Dragon & Phoenix Serba Pakaian Sdn. Bhd., Lot 1132 Jejawi Industrial Estate, 02600 Arau, Kangar, Perlis, Malaysia, and Dragon & Phoenix Serba Pakaian Sdn. Bhd., Lot 583, Kawasan Perindustrian, 33000 Kuala Kangsar, Perak, Malaysia, requesting a country of origin determination for certain woven cotton pants which will be imported into the United States. Samples of the garment's component pieces were submitted to this office for examination.

FACTS:

The subject merchandise consists of men's pants made of 100 percent woven cotton twill fabric. The manufacturing operations are as follows:

Option I

COUNTRY A

- piece goods are cut into shaped components; - the left fly and zipper are sewn and assembled to the left front panel;
- pleats are sewn onto each front panel and each front panel is overlocked to prevent unraveling; the two front panels are not joined at any point;
- front pockets are formed and attached to the front panels; - pleats are sewn onto each back panel and each back panel is overlocked to prevent unraveling;
- back besom pockets (also known as welt or slit pockets) with pocket flap are formed and attached to back panels; buttons and buttonholes are sewn onto pockets and flap, respectively;
- seat seam is sewn joining the left and right back panels together;
- interlining is fused and attached to the waistband panel and labels are attached to the waistband; - belt loops are cut and sewn;

COUNTRY B

- zipper is attached to the right fly;
- the right and left front panels are joined and front seam is sewn;
- front and back panels are joined by sewing the sideseams and inseams;
- belt loops are attached;
- waistband is attached to the front and back panels; - legs are hemmed;
- buttons are attached and buttonholes are slit; - finishing;
- packing.

Option II

COUNTRY A

- piece goods are cut into shaped components; - left fly and zipper are sewn and assembled to the left front panel;
- pleats are sewn onto each front panel and each front panel is overlocked to prevent unraveling;
- front pockets are formed and attached to front panels; - right and left front panels are joined to the right fly and front seam is sewn completing the front rise; - pleats are sewn onto each back panel and back panels are overlocked to prevent unraveling;
- back besom pockets with pocket flap are formed and attached to back panels; buttons and buttonholes are sewn onto pockets and flap, respectively;
- interlining is fused and attached to the waistband panel and labels are attached to the waistband; - belt loops are cut and sewn.

COUNTRY B

- right and left back panels are joined by sewing seat seam; - front and back panels are joined by sewing side seams and inseams;
- belt loops are attached;
- waistband is attached to the front and back panels; - legs are hemmed;
- buttons are attached and buttonholes are slit; - finishing;
- packing.

ISSUE:

What is the country of origin of the subject merchandise?

LAW AND ANALYSIS:

On December 8, 1994, the President signed into law the Uruguay Round Agreements Act. Section 334 of that Act (codified at 19 U.S.C. 3592) provides new rules of origin for textiles and apparel entered, or withdrawn from warehouse, for consumption, on and after July 1, 1996. On September 5, 1995, Customs published Section 102.21, Customs Regulations, in the Federal Register, implementing Section 334 (60 FR 46188). Thus, effective July 1, 1996, 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 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 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) 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":

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.

The subject pants are classified in heading 6203, Harmonized Tariff Schedule of the United States (HTSUS). Section 102.21(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.

As the assembly for the subject merchandise occurs in both Country A and Country B, the pants are not wholly assembled in a single country. Accordingly, Section 102.21(c)(2) is inapplicable.

Paragraph (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 nor wholly assembled is 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". It is the opinion of this office that in the case of the pants in option I, the most important assembly occurs at the time of the sewing together of the zipper to the right fly, the right and left front panels with front seam, the front and back panels with sideseams and inseams and the waistband to the front and back panels. Accordingly, country of origin is conferred in the single country where those operations occur, that is, Country B. In the case of the pants in option II, the most important assembly process occurs at the time of
the sewing together of the left fly and zipper and the assembly of the left fly and zipper to the front panels, the forming and attaching of the pockets, and the joining of the right and left front panels to the right fly and front seam. Accordingly, country of origin is conferred in the single country where those operations occur, that is, Country A. See also, HQ 958926, dated May 3, 1996, wherein in production plan I, similar to the subject option II, country of origin was conferred in Country A, where the front and back pockets are sewn and the front rise is joined with the zipper attached.

HOLDING:

The country of origin of the subject pants in option I is Country B.

The country of origin of the subject pants in option II is Country A.

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.

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.

Sincerely,

John Durant, Director

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