United States International Trade Commision Rulings And Harmonized Tariff Schedule
faqs.org  Rulings By Number  Rulings By Category  Tariff Numbers
faqs.org > Rulings and Tariffs Home > Rulings By Number > 1999 NY Rulings > NY E85391 - NY E85446 > NY E85425

Previous Ruling Next Ruling
NY E85425

October 1, 1999

CLA-2-62:RR:NC:TA:355 E85425


Mr. Alan R. Klestadt
Grunfeld, Desiderio, Lebowitz & Silverman LLP 245 Park Avenue
New York, NY 10167-3397

RE: Classification and country of origin determination for men’s woven cotton pants and shorts; United States – Israel Free Trade Agreement; 19 CFR Section 12.130; 19 CFR Section 102.21; General Note 8, HTS; Marking.

Dear Mr. Klestadt:

In your letter dated August 3, 1999 you requested a tariff classification ruling and. and country of origin determination for three garments that will be imported into the United States on behalf of your client, Mast Industries, Inc.


Abercrombie & Fitch style No. 2229 is a pair of men’s woven cotton pants; Abercrombie & Fitch style No. S-1266 is a pair of men’s woven cotton cargo shorts; Structure style No. PF-992511 is a pair of men’s woven cotton cargo pants.

The woven fabric for the garments, sourced in Korea, Hong Kong and\or Sri Lanka will be sent to Israel in an unmarked condition; in Israel the fabric will be cut into component parts for the pants and shorts; the components will be sent to and assembled in Sri Lanka; the garments will be shipped directly to the United States from Sri Lanka


What are the classification and country of origin of the garments?


The applicable subheading for the pants, style Nos. 2229 and PF-992511, will be 6203.42.4015, Harmonized Tariff Schedule of the United States (HTS), which provides for mens woven cotton pants. The rate of duty will be 17.2% ad valorem.

The applicable subheading for the shorts, style No. S-1266, will be 6203.42.4050, HTS, which provides for men’s woven cotton shorts. The rate of duty will be 17.2% ad valorem.

The textile category for the three styles is 347.

T he designated textile and apparel categories may be subdivided into parts. If so, visa and quota requirements applicable to the subject merchandise may be affected. Part categories are the result of international bilateral agreements which are subject to frequent renegotiations and changes. To obtain the most current information available, we suggest that you check, close to the time of shipment, the Status report on Current Import Quotas (Restraint Levels), an internal issuance of the U.S. Customs Service, which is available for inspection at your local Customs office.

Country of Origin:

Pursuant to Section 334 of the Uruguay Round Agreements Act new rules of origin were effective for textile products entered, or withdrawn from warehouse, after July 1, 1996. 19 CFR Section 102.21 sets forth the general rules to determine country of origin.

The manufacturing process for the pants and shorts occurs in Israel, Korea, Hong Kong and Sri Lanka. Section 334(b)(5) states:

This section shall not affect, for the purposes of the customs laws and administration of quantitative restrictions, the status of goods that, under rulings and administrative practices in effect immediately before the enactment of this Act, would have originated in, or been the growth, product, or manufacture of, a country that is party to an agreement with the United States establishing a free trade area, which entered into force before January 1, 1987. For such purposes, such rulings and administrative practices that were applied, immediately before the enactment of this Act, to determine the origin of textile and apparel products covered by such agreement shall continue to apply after the enactment of this Act, and on and after the effective date described in subsection ©, unless such rulings and practices are modified by the mutual consent of the parties to the agreement.

Israel is the only country which qualifies under the terms of Section 334(b)(5). As the Section 334 rules of origin for textiles and apparel products do not apply to Israel, we refer to the 19 C.F.R. 12.130 rules of origin, the rules of origin applicable to textiles and textile products before the enactment of Section 334. Section 334(b)(5) provides that if the country of origin determination for a particular product was Israel pursuant to Section 12.130, Israel will presently be accorded the same treatment.

Accordingly, pursuant to Section 12.130(b), the standard of substantial transformation governs the country of origin determination where textile and textile products are processed in more than one country. The country of origin of textile products is deemed to be that foreign territory or country where the article last underwent a substantial transformation. Substantial transformation occurs when an article is transformed into a new and different article of commerce by means of substantial manufacturing or processing.

Section 12.130(e)(1) states that the cutting of fabric into parts and the assembly of those parts into the completed article in a country will result in a substantial transformation in that country.

In this case, pursuant to Section 12.130, the last substantial transformation occurs in the country where the fabric is cut, Israel. Therefore Israel is the country of origin.

Under General Note 8 (United States-Israel Free Trade Area Agreement), HTUSA, Products of Israel may be eligible for preferential duty treatment if imported directly from Israel into the customs territory of the United States. The pants and shorts of this ruling are imported from Sri Lanka and thus are not eligible for the preferential rate of duty.


The country of origin of the garments is Israel. The garments should be marked “Made in Israel.” Based upon international textile trade agreements products of Israel are not subject to quota nor the requirement of a visa. The garments are not eligible for the preferential duty rate as they are not imported directly from Israel.

This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177). The holding in this ruling only applies to the specific factual situation presented and the merchandise identified in the ruling request. If the information furnished is not accurate or complete, or there is a change in the factual situation, this ruling will no longer be valid. In such an event, a new ruling request should be submitted.

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 Gerard Shea at 212-637-7082.


Robert B. Swierupski

Previous Ruling Next Ruling

See also: