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March 15, 1999

CLA?2-61:RR:NC:TA:359 D85693

CATEGORY: CLASSIFICATION

Mr. Robert T. Stack
Tompkins & Davidson, LLP
One Astor Plaza
1515 Broadway
New York, NY 10036-8901

RE: Classification and country of origin determination for a womanÂ’s knitted sweater made in more than one country; 19 CFR 102.21(c)(3)

Dear Mr. Stack:

This is in reply to your letter dated December 16, 1998, on behalf of your client, Federated Merchandising Group, a Division of Federated Department Stores, New York City, requesting a classification and country of origin determination for a womanÂ’s knitted sweater which is produced in more than one country and which will be imported into the United States.

FACTS:

The subject merchandise consists of a womanÂ’s knitted sweater. You submitted three samples of the one style to illustrate three separate stages of production. You also submitted panels from which this style is constructed. In accordance with our request, you have permitted us to retain the samples for instructional purposes.

Style No. 2269 is a womanÂ’s knitted pullover sweater with a crew neckline and short sleeves. The bottom of the sweater and the ends of the sleeves are rib knit construction. The fiber content is 100% cotton. The outer surface of the fabric of the garment has less than nine stitches per two centimeters in the direction in which the stitches were formed.

The component panels show these features:

I – Back panel:
a) Self-start, rib knit bottom and self-finished sides; b) A change in the knitted stitch patterns at the neck and armholes which are intended to indicate lines of demarcation along which the fabric is cut to allow shaping;

II- Sleeve panels:
a) Self-start, rib knit sleeve ends and self-finished sides; b) Change in the knitted stitch patterns which are intended to indicate lines of demarcation along which the fabric is cut to allow shaping;

III-Front panel:
a) Self-start, rib knit bottom and self-finished sides; b) A change in the knitted stitch pattern at the neck and armholes which indicate lines of demarcation along which the fabric is cut to allow shaping.

In addition you submitted three samples of the style which, when turned inside out, reveal the different stages in which the sweater will exist during the process of the joining of the panels. -Thus, Sample A shows the panels joined but with the excess fabric at the armholes and neckline still intact. Sample B shows the excess fabric trimmed with the armholes and shoulders finished with overlock stitching. Sample C shows all seams, including the side seams, finished with overlock stitching.

The manufacturing operations for the sweater, Style No. 2269 are as follows: all of the panels are knit in Taiwan in the same condition as those sample panels which we have discussed. The knitted panels are exported to China where they are linked into the finished sweater and the panels are trimmed of their excess fabric and all seams are finished with overlock stitching.

ISSUE:

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

CLASSIFICATION:

The applicable subheading for the sweater , Style No. 2269, will be 6110.20.2020, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for sweatersÂknitted or crocheted, of cotton, other, other: sweaters: womenÂ’s . The rate of duty will be 18.6% ad valorem.

The sweater falls within textile category designation 345. The designated textile and apparel categories and their quota and visa status are the result of international agreements that are subject to frequent renegotiations and changes. To obtain the most current information, we suggest that you check, close to the time of shipment, the U.S. Customs Service Textile Status Report, an internal issuance of the U.S. Customs Service, which is available at the Customs Web Site at WWW.CUSTOMS.USTREAS.GOV. In addition, the designated textile and apparel categories may be subdivided into parts. If so, visa and quota requirements applicable to the subject merchandise may be affected and should also be verified at the time of shipment.

COUNTRY OF ORIGIN - 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 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

6110.20.2020 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

Section 102.21(e) states that the good must undergo a classification tariff shift to a heading within the specific group from a heading outside that group; however, the panels are classified in heading 6117, while the sweater is found in heading 6110. Accordingly, as the sweater does not undergo the requiste tariff shift, this rule of origin does not apply, and 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.

As the subject merchandise is knit to shape in Taiwan, Section 102.21(c)(3) applies.

HOLDING:

The country of origin of the sweater is Taiwan. Based upon international textile trade agreements products of Taiwan are subject to quota and the requirement of a visa.

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 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 Mike Crowley at 212-637-7077.

Sincerely,

Robert B. Swierupski
Director,

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