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HQ 961125





December 30, 1997
CLA-2 RR:CR:TE 961125 RH

CATEGORY: CLASSIFICATION

Allan H. Kamnitz, Esq.
Sharretts, Paley, Carter & Blauvelt, P.C. Sixty-seven Broad Street
New York, NY 10004

RE: Country of Origin of a Men's Knit Garment from El Salvador; 19 C.F.R. ?102.21(c)(4);
Most Important Assembly; T-shirt

Dear Mr. Kamnitz:

This is in reply to your letter of September 8, 1997, on behalf of your client, Inter Cotton Company, Inc., requesting a ruling on the country of origin of a men's knit garment from El Salvador.

You sent samples of garment components for three manufacturing processes, marked Exhibits A, B and C, and request the country of origin under each process.

FACTS:

The three samples are men's white T-shirt components constructed from tubular knit, 100 percent cotton, light weight jersey fabric. The finished garment will have a rib knit crew neckline, short hemmed sleeves and a hemmed bottom. It will be classifiable in subheading 6109.10.0005 of the Harmonized Tariff Schedule of the United States Annotated (HTSUSA).

The three manufacturing scenarios are as follows:

1. BANGLADESH EL SALVADOR
- tubular fabric is knit and cut to shape - the collar, neck tape and label are attached
- the bottom is hemmed - the sleeves are attached
- the sleeves are hemmed - the shoulder seams are sewn

2. BANGLADESH EL SALVADOR
- tubular fabric is knit and cut to shape - the neck tape and label are attached
- the bottom is hemmed - the sleeves are hemmed - the sleeves are hemmed - the shoulder seams are sewn
- the collar is attached

3. BANGLADESH EL SALVADOR
- tubular fabric is knit and cut to shape - the neck tape and label are attached
- the collar is attached - the sleeves are attached
- the shoulder seams are sewn - the bottom is hemmed - the sleeves are hemmed

You contend that the country of origin is El Salvador in all three cases.

ISSUE:

What is the country of origin of the T-shirts manufactured in Bangladesh and El Salvador?

LAW AND ANALYSIS:

On December 8, 1994, the President signed into law the Uruguay Round Agreements Act. Section 334 of that Act provides new rules of origin for textiles and apparel entered, or withdrawn from warehouse, for consumption, on or after July 1, 1996.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." Since the T-shirts will not be wholly obtained or produced in a single country, territory or insular possession, paragraph (c)(1) is not applicable.

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":

6101-6117 (1) 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.

Section 102.21(b)(6) states that:

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.

Since the components of the T-shirts in all three production plans are assembled in more than one country, 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.

Since the merchandise is neither knit to shape, nor wholly assembled in a single country, section 102.21(c)(3) is not applicable.

Section 102.21(c)(4) states that "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 this case, we agree with you that the most important assembly of the T-shirts in the first two scenarios occurs in El Salvador. With regard to scenario three, you contend that the country of origin is also El Salvador, and you cite Headquarters Ruling Letter (HQ) 961125, dated May 24, 1996, in support of your claim. In that ruling, we held that the country of origin of a T-shirt under section 102.21(c)(4) was where the side seams were sewn, sleeves attached, sleeves and bottom hemmed and the T-shirt pressed. Unlike the T-shirt in HQ 961125, the tubular knit T-shirt at issue does not have side seams and, although attaching the sleeves in El Salvador is an important assembly operation, attaching both the shoulder seams and collar is the most important assembly. Accordingly, Bangladesh is the country of origin in scenario three.

HOLDING:

The country of origin of the T-shirt manufactured under scenarios one and two is El Salvador. The country of origin of the T-shirt manufactured under scenario three is Bangladesh.

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 19 C.F.R. ?177.9(b)(1), which states that each ruling letter is issued on the assumption that all of the information furnished and incorporated in the 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 C.F.R. revocation. A change in the facts previously furnished may affect the determination of country of origin. Thus, if there is any change in the facts provided to Customs, it is recommended that a new ruling request be submitted in accordance with 19 C.F.R. ?177.2.

Sincerely,

John Durant, Director
Commercial Rulings Division

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