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NY H81757




August 10, 2001

CLA2-RR:NC:TA:N3:356 H81757

CATEGORY: CLASSIFICATION

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

RE: Classification and status under the North American Free Trade Agreement (NAFTA) of men’s knit garments produced in the United States, El Salvador and Mexico; Article 509; Country of origin determination; 19 CFR 102.21(c)(2); tariff shift

Dear Mr. Gomez:

This is in reply to your letter dated May 24, 2001, on behalf of Designs Alive, in which you requested the classification, country of origin, and originating status under the North American Free Trade Agreement (NAFTA), for men’s knit garments which will be produced in the United States, El Salvador and Mexico and imported into the United States. You have provided a sample of the garment after assembly in El Salvador but prior to dyeing or screen-printing in Mexico. As requested, your sample will be returned.

FACTS:

The submitted sample is a men’s T-shirt constructed from 100 percent cotton, finely knit jersey fabric. The garment has a rib knit, crew neckline; short, hemmed sleeves; and a hemmed bottom. The imported garments will have screen-printed designs on the front and/or back panels. The manufacturing operations for the garments are as follows:

Fabric of U.S. origin is cut into component parts and assembled into finished garments in El Salvador. The garments are purchased in the U.S.A. by your client and sent to Mexico for dyeing and screen printing. The dyed and/or screen printed garments are imported into the United States.

ISSUE:

What are the classification, country of origin, and NAFTA status of the subject merchandise?

CLASSIFICATION:

The applicable subheading for the dyed or screen-printed T-shirt will be 6109.10.0012, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for T-shirts, singlets, tank tops and similar garments, knitted or crocheted: of cotton: men’s or boys’: other: other T-shirts: men’s. The general rate of duty will be 17.8 percent ad valorem.

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Section 334 of that Act (codified at 19 U.S.C. 3592) provides new rules of origin for textiles and apparel entered, or withdrawn from warehouse, for consumption, on and after July 1, 1996.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

6101-6117 If the good is not knit to shape and consists of two or more component parts, a change to an assembled good of heading 6101 through 6117 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) defines “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 submitted garment is not knit to shape and consists of two or more parts. As the screen printing is considered a minor embellishment, and as all of the assembly operations performed on the garment occur in El Salvador, the garment is considered “wholly assembled” in a single country, that is, El Salvador. As per the terms of the tariff shift requirement, country of origin is conferred in El Salvador.

HOLDING:

The applicable subheading for the garment will be 6109.10.0012, (HTSUSA), which provides for T-shirts, singlets, tank tops and similar garments, knitted or crocheted: of cotton: men’s or boys’: other: other T-shirts: men’s. The general rate of duty will be 17.8 percent ad valorem.

The garment falls within textile category designation 338. Based upon international textile trade agreements, products of El Salvador are not presently subject to visa requirements or quota restraints.

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.

The garment does not meet the requirements of HTSUSA general Note 12(b) and does not qualify for preferential treatment under the NAFTA because the garment was assembled outside the NAFTA territories. In addition, it does not qualify for the Tariff Preference Level of Section XI, Additional U.S. Note 3 because the garment is not a product of Mexico.

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 Mary Ryan at 212-637-7081.

Sincerely,

Robert B. Swierupski
Director,
National Commodity Specialist Division

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