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NY H89566




April 19, 2002

CLA2-RR:NC:61:TA-359: H89566

CATEGORY: CLASSIFICATION

Mr. Eric Flicker
President
S.C. Trader, Inc.
1143 East Janis St.
Carson, California 90746

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

Dear Mr. Flicker:

This is in reply to your letter dated March 19,2002, requesting a classification and country of origin determination for two styles of women’s knitted wearing apparel which will be imported into the United States.

FACTS:

The subject merchandise consists of two styles of women’s knitted wearing apparel and, in addition, the component panels from which each of those styles are constructed. All of your submitted samples, the garments and the component panels, are returned to you under separate cover.

The first sample, Style 18197319, is a woman’s knitted pullover, which has a turtleneck and long sleeves with rib knit cuffs. The pullover extends from the wearer’s neck and shoulders to below her waist. The knitted fabric of the pullover has more than nine stitches per two centimeters, measured in the direction in which the stitches were formed. The fiber content is 100% cotton. The component panels submitted include two sleeve panels which are each partially joined at the seam and which have their rib knit cuffs attached; the front and back panels which are partially joined at the side seams; and the turtleneck which is fully joined at the seam. You state that these panels represent the components of the pullover after they are processed in China.

The second sample, Style 48445, is a woman’s knitted pullover polo shirt which has a two-button, partial front opening with a placket at the neck, a collar, short sleeves with rib knit cuffs, and a hemmed bottom with five inch side slits. The knitted fabric of the pullover has more than nine stitches per two centimeters, measured in the direction in which the stitches were formed. The fiber content is 100% cotton. The component panels submitted include the front and back panels partially sewn together (the collar and the front placket are attached) and the two sleeve panels (not sewn closed). You state that these panels represent the components of the pullover after they are processed in China.

The manufacturing operations for the turtleneck pullover are as follows:

In China
-cut the knitted fabric into the component panels -sew the side seam of the turtleneck
-sew the side seams of the sleeve panels
-attach the cuffs to the sleeves
-sew the side seam of the front and back panel

In the Commonwealth of the Northern Mariana Islands -sew the shoulder seams
-attach the turtleneck
-attach the sleeves

The manufacturing operations for the polo shirt are as follows:

In China
-cut the knitted fabric into the component panels -sew the placket to the front panel
-sew the neck band to the collar
-attach the collar to the front panel
-attach the cuffs to the sleeves
-sew the side seams closed

In the Commonwealth of the Northern Mariana Islands -sew the shoulder seams
-attach the collar to the back panel
-attach the sleeves to the front and back panels -sew the sleeves at their side seam
-sew the side seams of front and back panels

ISSUE:

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

CLASSIFICATION:

The applicable subheading for the two women’s knitted pullovers, of cotton, will be 6110.20.2075, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for sweaters, pullovers----and similar articles, knitted or crocheted: of cotton: other: other: other: women’s. The rate of duty will be 17.3% ad valorem.

Each of the pullovers 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 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.

Section 102.21(e) states that the good must be assembled in a single country, territory or insular possession. Accordingly, as these styles are assembled in more than one country, territory or insular possession, they do not satisfy the conditions of the tariff shift and, therefore, 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; 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 to shape, nor wholly assembled in a single country, territory or insular possession, 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 merchandise, that is, the first item, turtleneck pullover, the sewing of the shoulder seams, the attaching of the collar to the body, and the attaching of the sleeves to the body, all of which occur in the Commonwealth of the Northern Mariana Islands, constitute the most important assembly processes. In the case of the second item, the pullover polo shirt, the sewing of the shoulder seams, the attaching of the collar, the attaching of the sleeves, and the sewing of the side seams, all of which occur in the Commonwealth of the Northern Mariana Islands, constitute the most important assembly processes. Accordingly, the country of origin of the turtleneck pullover and of the pullover polo shirt is conferred in the Commonwealth of the Northern Mariana Islands.

General Note 3(a) (iv), HTSUSA permits products of insular possessions (of which the Commonwealth of the Northern Mariana Islands is one) of the United States to be imported into the United States free of duty if certain requirements are fulfilled. Duty-free entry is permitted to products that do not exceed the specified foreign value limitation, that are shipped directly to the customs territory of the United States from the insular possession, and that are the growth or product of the insular possession.

Treasury Decision (T.D.) 88-17, effective April 13, 1988, determined that the concept of double substantial transformation should be used in deciding whether foreign material that does not originate in the insular possession may nevertheless qualify as part of the value of material produced in the insular possession for purposes of the foreign value limitation. To do this the foreign material must be substantially transformed in the insular possession and then this different product must be transformed yet again into another new and different product which is exported to the United States. In the processing operations described for both of the styles under consideration, bolts of rolled fabric are cut into the component panels for their respective pullovers, and are partially assembled in China, not in the Commonwealth of the Northern Mariana Islands. Therefore, the requirement that a double substantial transformation take place in the Commonwealth of the Northern Mariana Islands is not fulfilled, and the styles do not qualify for duty-free status.

HOLDING:

The country of origin of the turtleneck pullover and the pullover polo shirt is the Commonwealth of the Northern Mariana Islands. Because the Northern Mariana Islands are not a foreign country, and the United States has no bilateral quota or visa agreements with them, the two styles, the turtleneck pullover and the polo shirt pullover, as products of the Commonwealth of the Northern Mariana Islands, are neither subject to quota restraints nor 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 646-733-3049.

Sincerely,

Robert B. Swierupski
Director,

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