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August 19, 1999

CLA-2-61:RR:NC:TA:N3:356 E84609

CATEGORY: CLASSIFICATION

TARIFF NO.: 6110.20.2065; 9802.00.80

Ms. Sandra Stein
Z.H.G. Industries, Inc.
465 Troutman Street
Ridgewood, New York 11237

RE: The tariff classification and applicability under HTS 9802 of a men=s pullover garment from the Dominican Republic.

Dear Ms. Stein:

In your letter dated July 8, 1999, you requested a tariff class?i?fi??ca?tion ruling.

You state that you currently knit men’s fully fashioned, undyed, sweater blanks in the United States. The knit to shape blanks consist of the front and back panels and the sleeve panels. The panels will be sent to your factory in the Dominican Republic where they will be assembled into garments by looping the panels together. The unfinished garments will be returned to the United States to be dyed, washed, pressed, labeled and packaged.

You have provided samples of the knit to shape panels, the unfinished assembled garment, and the garment as it will be finished in the United States. The unfinished men=s pullover garment is constructed from 100 percent cotton, 4x2 rib knit fabric that measures 10 stitches per 2 centimeters counted in the horizontal direction. The garment features a rib knit crew neckline; long sleeves with rib knit cuffs; and a rib knit bottom.

Examination of the finished and unfinished garments shows that the dyeing, washing and finishing operations performed in the U.S. “tighten” the knit fabric and result in a finished garment with a different stitch count from the unfinished garment.

The classification of goods imported in the unfinished state is governed by General Rule of Interpretation 2 (a), Harmonized Tariff Schedule of the United States (HTS), which states that any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as entered, the incomplete or unfinished article has the essential character of the complete or finished article.

The applicable subheading for the unfinished garment will be 6110.20.2065, Harmonized Tariff Schedule of the United States (HTS), which provides for: Sweaters, pullovers, . . . and similar articles, knitted or crocheted: of cotton: other: other: other: men's or boys’. The duty rate will be 18.6 percent ad valorem.

Section 12.130(c), Customs Regulations (19 CFR 12.130), provides for articles which are exported from the United States for processing and returned. This section refers to Chapter 98, Subchapter II, Note 2, HTS, which provides that any product of the U.S. which is returned after having been advanced in value or improved in condition abroad, or assembled abroad, shall be a foreign article for the purposes of the Tariff Act of 1930, as amended, and that merchandise which falls within the purview of Chapter 98, Subchapter II, Note 2, HTS, may not, upon its return to the U.S., be considered a product of the U.S.

Heading 9802.00.80 provides for articles assembled abroad in whole or in part of fabricated components, the product of the United States, which (a) were exported in condition ready for assembly without further fabrication, (b) have not lost their physical identity in such articles by change in form, shape or otherwise, and (c) have not been advanced in value or improved in condition abroad except by being assembled and except by operations incidental to the assembly process.

In order to receive a duty allowance under subheading 9802, all three requirements of subheading 9802.00.80, HTSUS, must be satisfied. Any significant process, operation, or treatment whose primary purpose is the fabrication, completion, or physical improvement of a component precludes the application of the exemption under subheading 9802.00.80, HTSUS, to that component.

If the imported garment meets the above requirements, it may be eligible for a duty allowance under HTS heading 9802 upon its return to the United States. An article entered under this tariff provision is subject to duty upon the full value of the assembled article, less the cost or value of such U.S. components, upon compliance with the documentary requirements of section 10.24, Customs Regulations (19 C.F.R. 10.24).

The garment falls within textile category designation 338. Based upon international tex?tile trade agreements, products of the Dominican Republic are subject to visa re?quire?ments and quota restraints.

The designated textile and apparel categories and their quota and visa status are the result of in?ter??na?tion??al agreements that are sub?ject to frequent re?ne?go?ti?a?tions 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 Customs Web site at www.customs.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.

This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).

A copy of this 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 this ruling, contact National Import Specialist Mary Ryan at 212-637-7081.

Sincerely,

Robert B. Swierupski
Director,

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