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NY F82627




March 7, 2000

CLA2-61:RR:NC:TA:359 F82627

CATEGORY: CLASSIFICATION

Mr. Harold I. Loring
Grunfeld, Desiderio, Lebowitz and Silverman, LLP 245 Park Avenue, 33rd Fl.
New York, NY 10167-3397

RE: Classification and country of origin determination for women’s knitwear; 19 CFR 102.21(c)(3) and 19 CFR 102.21(c)(4)

Dear Mr. Loring:

This is in reply to your letter dated February 1, 2000, submitted on behalf of Bengal Knitwear Int’l, Ltd., St. Helier, Jersey, Channel Islands, England, requesting a classification and country of origin determination for a woman’s knitted pullover which will be imported into the United States. The samples which you furnished are returned as requested.

FACTS:

The subject merchandise consists of a woman’s knitted pullover with a rib knit, crew neckline; long sleeves with rib knit cuffs; and a pronounced rib knit waistband. The pullover covers the wearer’s upper torso from her neck and shoulders to below her waist. There are full-fashion marks at the join of the armholes and the sleeves. The garment has a jersey knit fabric that is made from 100% cotton fibers, and that has more than nine stitches per two centimeters, measured in the direction in which the stitches were formed. The style number of the pullover is 22928008. You state that your client intends to sell this merchandise to Montgomery Ward, which will import the merchandise into the United States.

You have also furnished examples of all of the knitted component panels from which the pullover is made. These consist of:

Back panel with
-self-start bottom
-self-finished sides
-armholes contoured to shape during the knitting process Front panel with
-self-start bottom
-self-finished sides
-armholes contoured to shape during the knitting process -clear but not continuous lines of demarcation at the neck Sleeve panels with
-self-start ends
-self-finished sides
-contoured shapes at the join of the sleeves to the shoulders Rib-knit neckband.

The four major component panels are considered knit to shape for the purpose of determining the country of origin of the pullover.

The manufacturing operations for the pullover are as follows:

In Myanmar
- all four major component panels are knit to shape In China
- the panels are linked together (assembled) - the pullover is finished

As a possible alternate process for manufacturing this sample, you note that a different circumstance may pertain. Only the front and back panels are knit to shape in Myanmar, while in China the sleeves are knit to shape, the component panels are linked together and the garment is finished.

ISSUE:

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

CLASSIFICATION:

The applicable subheading for the pullover, Style 22928008 will be 6110.20.2075, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for sweaters, pulloversand similar articles, knitted or crocheted: of cotton, other, other, other, women’s. The rate of duty will be 18.2% ad valorem.

The pullover falls within textile category designation 339. 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.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

6110.20.2075 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 tariff classification change (the “tariff shift”) must occur to one of the headings within the designated group of headings (6101 through 6117) from another heading outside of that group. Accordingly, as the classification change occurs within the designated group and not outside of it, i.e., from the component panels in heading 6117 to the pullover in 6110, the required tariff shift does not take place 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 (in the principal processing method for manufacturing this sample according to which all of the major component panels are knit to shape in Myanmar), knit to shape in a single country, i.e., Myanmar, Section 102.21(c)(3) applies.

Under the terms of your proposed alternate method of manufacturing this sample, according to which only the front and the back panels are knit to shape in Myanmar, while in China the sleeves are knit to shape and the component panels are assembled into the finished pullover, please note the following:

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 not knit to shape 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 a 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 front and back component panels, which occurs in Myanmar, constitutes the most important manufacturing process. Accordingly, the country of origin of the pullover is Myanmar.

HOLDING:

The country of origin of the pullover, Style 22928008, is Myanmar for both the principal and the alternate method of manufacturing the garment. Based upon international textile trade agreements products of Myanmar 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 section 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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