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NY G82241




October 5, 2000

CLA2-RR:NC:TAB:354 G82241

CATEGORY: CLASSIFICATION

Ms. Becky Tong
Ka Bon Garment Factory Ltd.
Estrada Marginal Da Areia Preta No. 5
Edificio Cento Polytex “4” Andar “F”, Macau

RE: Classification and country of origin determination for men’s woven boxer shorts; 19 CFR 102.21(c)(4); most important assembly or manufacturing process

Dear Ms. Tong:

This is in reply to your letter dated September 6, 2000, requesting a classification and country of origin determination for men’s woven boxer shorts which will be imported into the United States. Partially assembled components and a completed sample were submitted to our office.

FACTS:

The submitted boxer style underpant, reference no. 001879, features a fly front, a fully exposed elastic waistband, two-inch side vents and hemmed leg openings.

Your request indicates that the manufacturing operations are as follows:

CHINA (part I)

► cotton fabric is formed
► fabric is cut in component pieces
► front fly is sewn
► left and right front panels are joined

MACAU(part I)

► left and right back panel is joined
► side seams are sewn
► inseam is sewn

CHINA (part II)

► side vents are sewn
► fully exposed elastic waistband is joined to the body ► bottoms are hemmed

MACAU (part II)

► labels are sewn

We note that the above stated manufacturing steps, requiring additional transportation between two countries of the unfinished pieces, may not represent a commercially viable process. However, providing that the manufacturing operations occur in the respective countries as you state, we will rule on the scenario as presented.

ISSUE:

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

CLASSIFICATION:

The applicable subheading for the boxer will be 6207.11.0000, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for men’s or boys’ underpants, briefs . . . and similar articles: underpants and briefs: of cotton. The rate of duty will be 6.3 percent ad valorem.

The boxer style underpant falls within textile category designation 352. 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":

62016208 If the good consists of two or more component parts, a change to an assembled good of heading 6201 through 6208 from unassembled components, provided that the change is the result of the good being wholly assembled in a single country, territory, or insular possession.

Paragraph (b)(6) of section 102.21 defines the term “wholly assembled” as:

The term “wholly assembled” when used with reference to a good means that all components, of which there must be at least two, preexisted in essentially the same condition as found in the finished good and were combined to form the finished good in a single country, territory, or insular possession. Minor attachments and minor embellishments (for example, appliques, beads, spangles, embroidery, buttons) not appreciably affecting the identity of the good, and minor subassemblies (for example, collars, cuffs, plackets, pockets), will not affect the status of a good as “wholly assembled” in a single country, territory, or insular possession.

The subject merchandise is classified as men’s underpants in heading 6207, Harmonized Tariff Schedule of the United States (HTSUS). As the subject merchandise undergoes assembly operations in both China and Macau that go beyond “minor attachments, minor embellishments and minor subassemblies”, it does not qualify as “wholly assembled” in a single country. As such paragraph (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; or

(ii) Except for goods of heading 5609, 5807, 5811, 6213, 6214, 6301 through 6306, and 6308, and subheadings 6209.20.5040, 6307.10, 6307.90, and 9404.90, if the good was not knit to shape and the good was wholly assembled in a single country, territory, or insular possession, the country of origin of the good is the country, territory, or insular possession in which the good was wholly assembled.

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 men’s boxers, the joining of the left & right back pieces and the sewing of the side seams and inseams constitute the most important assembly processes. Accordingly, the country of origin of the garment is Macau.

HOLDING:

The country of origin of the boxer style underpant is Macau. Based upon international textile trade agreements products of Macau are subject to visa requirements.

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 Brian Burtnik at 212-637-7083.

Sincerely,

Robert B. Swierupski
Director,

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