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August 23, 1999

CLA?2-61:RR:NC:TA:359 E82104

CATEGORY: CLASSIFICATION

Mr. David J. Evan
Grunfeld, Desiderio, Lebowitz & Silverman 245 Park Ave., 33rd Floor
New York, NY 10167-3397

RE: Classification and country of origin determination for a woman’s knitted sweater; 19 CFR 102.21(c)(4)

Dear Mr. Evan:

This is in reply to your letter dated May 13, 1999, on behalf of Champion Knitwear, Ltd., requesting a classification and country of origin determination for a woman’s knitted sweater which will be imported into the United States.

FACTS:

The subject merchandise consists of a woman’s knitted pullover sweater with a round neckline, long sleeves with rib knit cuffs and a rib knit bottom. The entire front of the sweater is made from a cable knit construction, while the rear and long sleeves are made in a 3x3 rib knit pattern. The fiber content of the sweater is 70% lambswool, 20% angora and 10% nylon. The style number is 28464. You also submitted examples of all of the fabric panels from which the sweater is constructed. All samples are returned as requested.

The front panel shows a self-start bottom and self-finished sides. The armholes and neckline are contoured to shape during the knitting process. The back panel shows the same knitting process as the front panel. The two sleeves also show self-start ends and self-finished sides. At their tops, near the join to the shoulders, they show different colored yarns which can be used as lines of demarcation. All four panels are considered to be knit to shape.

The manufacturing operations for the sweater are as follows:
the front panel is knit in China; the back and sleeve panels are knit in Thailand; the panels are assembled in Thailand.

ISSUE:

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

CLASSIFICATION:

The applicable subheading for the sweater, Style No. 28464, will be 6110.10.2030, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for women’s sweaters, knitted: of wool or fine animal hair: other. The rate of duty will be 16.5% ad valorem.

The sweater falls within textile category designation 446. 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

6110.10.2030 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

Section 102.21(e) states that the knit-to-shape components must undergo a change in classification from a heading outside of the designated group; however, the necessary tariff shift occurs within the named headings. Accordingly, as the sweater does not qualify, 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 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 the subject merchandise, the knitting to shape of the back and sleeve panels, as well as the final assembly of the sweater in Thailand, constitutes the most important assembly processes. Accordingly, the country of origin of the sweater is Thailand.

HOLDING:

The country of origin of the sweater is Thailand. Based upon international textile trade agreements products of Thailand 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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