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NY F82890




March 30, 2000

CLA-2-61:RR:NC:TA:359 F82890

CATEGORY: CLASSIFICATION

TARIFF NO.: 6110.30.3055

Mr. Francisco Gomez Jr.
R.L. Jones Tecate, Inc.
Customhouse Brokers
P.O. Box 970
Tecate, California 91980

RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of a woman’s knitted cardigan from Mexico; Article 509; Country of Origin Determination CFR 102.2(c)(3); CR 12.130

Dear Mr. Gomez:

In your letter dated January 5, 2000, and in subsequent information dated February 9, 2000, submitted on behalf of your client, Toula Manufacturing Ltd., Inc., Medley, Florida, you requested a ruling on the status of a woman’s knitted cardigan from Mexico under the NAFTA.

The sample, Style 1105, is a woman’s knitted cardigan which has a round, capped neckline, long sleeves and a full-front, zippered opening. There are also five non-functional plastic buttons on each side of the front opening. The cardigan is equipped with inside shoulder pads. The fabric of the cardigan has more than nine stitches per two centimeters, measured in the direction in which the stitches were formed. The cardigan is composed of 80% acrylic and 20% nylon fibers.

You also submitted the component panels of the cardigan which are described as follows:

Two front panels
-self-start bottoms
-self-start finished sides
-armholes contoured to shape during the knitting process -neckline contoured to shape during the knitting process

Back panel
-self-start bottom
-self-finished sides
-armholes contoured to shape during the knitting process

Two sleeve panels
-self-start ends
-self-finished sides
-armholes contoured to shape during the knitting process.

All of the five major component panels (the major parts) are considered knit to shape for the purpose of determining the country of origin for the cardigan.

As part of your request to this office you also submitted a statement from Toula Manufacturing Ltd., Inc., which certifies that the yarn used in knitting the cardigan was spun in North Carolina, USA. You also submitted a copy of Customs Form (CF) 434, a Certificate of Origin, which was prepared by the American yarn spinner, and which affirms that the yarns are of United States origin. You described the manufacturing process for the cardigan as follows:

-Yarns are purchased in the United States - Component panels of the cardigan are knit to shape in the United States - Component panels are looped together in Mexico - Cardigan is finished in the United States

The applicable tariff provision for the woman’s knitted cardigan, Style 1105, will be 6110.30.3055, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for sweaters, pulloversand similar articles, knitted or crocheted, of man-made fibers, other, other, other, other, other, women’s or girls’. The general rate of duty will be 32.9% ad valorem.

Each of the non-originating materials used to make the woman’s knitted cardigan has satisfied the changes in tariff classification required under HTSUSA General Note 12(t)/61.35. The cardigan will be entitled to a FREE rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements.

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

6110.30.3055 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 shift must occur from a tariff heading outside the designated grouping (6101-6117); however, the change occurs within that grouping. Accordingly, as the required tariff shift does not take place, 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 the United States, Section 102.21(c)(3) applies.

HOLDING:

The country of origin of the woman’s knitted cardigan is the United States. However, there is an exception for products from the United States that are sent abroad for processing. Section 12.130 (c), Customs Regulations, provides that any product of the United States which is returned after having been advanced in value or improved in condition abroad, or assembled abroad, shall be considered a foreign article.

Section 12.130, which remains in effect, was originally intended to be used to determine the country of origin of textiles and textile products for quota/visa requirements. In Treasury Decision (T.D.) 90-17, issued February 23, 1990, Customs announced a change in practice and position. This change resulted in Customs using Section 12.130 for quota, duty and marking purposes when making country of origin determinations for textile goods. Therefore, in accordance with T.D. 90-17 and Section 12.130(c), C.R., the country of origin of the woman’s knitted cardigan is Mexico for quota, marking and duty purposes.

FINAL HOLDING:

The woman’s knitted cardigan is eligible for the NAFTA “MX” special duty rate of FREE upon compliance with all applicable laws, regulations and agreements. It is not subject to the restraints of quota or the requirement of a visa.

This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 C.F.R. 181).

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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