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NY I87439




November 15, 2002

CLA-2-RR:NC:TA:N3:356 I87439

CATEGORY: CLASSIFICATION

Mr. Bill Julich
Delmar International, Inc.
147-55 175th Street
Jamaica, NY 11434

RE: Classification and country of origin determination for men’s and women’s knit garments; Products of the West Bank, the Gaza Strip or a qualifying industrial zone; General Note 3(a)(v); General Note 8; 19 CFR 102.21(c)(2); tariff shift; T.D. 98-62.

Dear Mr. Julich:

This is in reply to a letter dated October 15, 2002, on behalf of Charter Ventures LLC, concerning a classification and country of origin determination for knit garments that will be imported into the United States. You state that the manufacturing operations will occur in China, Israel and the Irbid QIZ, Jordan. You provided samples of the garment parts as sent to Jordan and the finished garments as imported into the United States. Your samples will be returned.

FACTS:

Style HO2-831, PS #02-09030 is a men’s jacket constructed from 80 percent cotton, 20 percent polyester, finely knit fabric that is napped on the inside surface. Style HO2-831 has a full front opening with a zipper closure; a self-fabric hood with a drawstring; long, set-in sleeves with rib knit cuffs; embroidered appliqued letters on the center chest; pouch pockets below the waist; woven fabric labels on the left pocket and the left sleeve; and a rib knit bottom.

Style 6768, PS#02-07064 is a men’s polo shirt constructed from 65 percent cotton, 35 percent polyester, pique knit fabric that measures 10 stitches per linear centimeter counted in the horizontal direction and 15 stitches per linear centimeter counted in the vertical direction. The garment has a partial front opening with a three button placket; a rib knit spread collar; short sleeves with rib knit cuffs; an embroidered logo on the left sleeve; a half-moon at the rear neckline; and a hemmed bottom with side slits.

Style 6020, PS# 02-03140 is a women’s pullover constructed from 100 percent cotton, 1x1 rib knit fabric that measures more than 9 stitches per two centimeters counted in the horizontal direction. Style 6020, PS# 02-03140 is sleeveless and has a round neckline finished with rib knit capping; shoulders that measure 2 ½ inches in width; a screen printed logo on the center chest; and a straight, hemmed bottom.

The manufacturing operations for Style HO2-831, PS #02-09030 are as follows:

CHINA:
The fabric is formed and cut into component parts The embroidered appliques are applied to the front panels

ISRAEL:
The trims, thread, polybags and cartons are supplied

IRBID, QIZ, JORDAN:
The pockets are attached to the front panels The front and back panels are joined at the shoulders The hood is formed and attached
The sleeves are attached to the front and back panels The side seams are closed
The rib knit waistband and rib knit cuffs are attached The front zipper is attached
The grommet holes are added to the hood and the drawstring is inserted The garment is washed, pressed, inspected and packed for export to the U.S.

The manufacturing operations for Style 6768, PS#02-07064 are as follows:

CHINA:
The fabric is formed and cut into component parts The embroidered logo is applied to the left sleeve component

ISRAEL:
The trims, shoulder tape; care label, threads, polybags, cardboard, and cartons are supplied

IRBID, QIZ, JORDAN:
The placket is formed and attached to the front panel The front and back panels are joined at the shoulders The collar is attached
The sleeves are attached to the front and back panels The side seams are closed
The rib knit cuffs are attached
The button holes are formed and the buttons are attached The side vents are formed and the front and back panels are hemmed The garment is washed, pressed, inspected and packed for export to the U.S.

The manufacturing operations for Style 6020, PS# 02-03140 are as follows:

CHINA:
The fabric is formed and cut into component parts The screen printed logo is applied to the front panel

ISRAEL:
The trims, threads, polybags, and cartons are supplied

IRBID, QIZ, JORDAN:
The front and back panels are joined at the shoulders The side seams are closed
The rib knit capping is attached to the neckline and armholes The front and back panels are hemmed
The garment is washed, pressed, inspected and packed for export to the U.S.

ISSUE:

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

CLASSIFICATION:

The applicable subheading for Style HO2-831, PS #02-09030, will be 6101.20.0010, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for men’s or boys’ windbreakers, and similar articles, knitted or crocheted: of cotton: men’s. The general rate of duty will be 16.1 percent ad valorem.

The applicable subheading for Style 6768, PS#02-07064 will be 6105.10.0010, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for men’s or boys’ shirts, knitted or crocheted: of cotton: men’s. The general rate of duty will be 20 percent ad valorem.

The applicable subheading for Style 6020, PS# 02-03140 will be 6110.20.2075, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for women’s or girls’ pullovers, and similar articles, knitted or crocheted: of cotton: women’s or girls’. The general rate of duty will be 17.3 percent ad valorem.

Style HO2-831, PS #02-09030 falls within textile category designation 334. Style 6768, PS#02-07064 falls within textile category designation 338. Style 6020, PS# 02-03140 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.

You stated that the processing operations in Jordan were performed in the Irbid Qualifying Industrial Zone (QIZ). General Note 3(a)(v)(G), HTSUS, defines a “qualifying industrial zone” as any area that:”(1) encompasses portions of the territory of Israel and Jordan or Israel and Egypt; (2) has been designated by local authorities as an enclave where merchandise may enter without payment of duty or excise taxes; and (3) has been designated by the U.S. Trade representative in a notice published in the Federal Register as a qualifying industrial zone.”

By letters dated June 30, 1997 and July 1, 1997, to the U.S. Trade Representative, the Governments of Jordan and Israel, respectively, requested the designation of the industrial zone in Irbid, Jordan, as a QIZ. Pursuant to subsequent consultations among the three Governments, the Governments of Israel and Jordan entered into a written agreement dated November 16, 1997, relating to the establishment of the Irbid QIZ, which included the following provision, entitled “Rules of Origin”:

The [Governments of Israel and Jordan] agree that the origin of any textile or apparel product that is processed in the Irbid Qualifying Zone, regardless of the origin or place of processing of any of its inputs or materials prior to entry into, or subsequent withdrawal from, the zone, will be determined solely pursuant to the rules of origin for textile and apparel products set out in Section 334 of Uruguay Rounds Act, 19 U.S.C.§ 3592.

By notice published in the Federal Register on March 13, 1998 (63 FR 12572), the Office of the U.S. Trade Representative formally designated the Israeli-Jordanian Irbid Qualifying Industrial Zone as a QIZ. Treasury Decision 98-62, published in the Federal Register on June 26, 1998 (63 FR 34960), determined that pursuant to the agreement between the Governments of Israel and Jordan, and by mutual consent of the U.S. and Israel, Customs will exclusively apply the textile and apparel rules of origin set forth in 19 C.F.R. §102.21 in determining the country of origin of a textile or apparel product processed in the Irbid QIZ.

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 garments are not knit to shape and consist of two or more parts. As all of the assembly operations occur in Jordan, the garments are considered “wholly assembled” in a single country, that is, Jordan. As per the terms of the tariff shift requirement, country of origin is conferred in Jordan.

STATUS UNDER THE UNITED STATES - ISRAEL FREE TRADE AGREEMENT:

Pursuant to the authority conferred by section 9 of the U.S. - Israel Free Trade Area Implementation Act of 1985 (19 U.S.C § 2112 note), the President issued Proclamation No. 6955 dated November 13, 1996 (published in the Federal Register on November 18, 1996 (61 Fed. Reg. 58761)), which modified the Harmonized Tariff Schedule of the United States (HTSUS) (by creating a new General Note 3 (a)(v)) to provide duty-free treatment to articles which are the product of the West Bank, Gaza Strip or a qualifying industrial zone, provided certain requirements are met. Such treatment was effective for products of the West Bank, Gaza Strip or a qualifying industrial zone entered or withdrawn from warehouse for consumption on or after November 21, 1996.

Under General Note 8, HTSUS, products of a qualifying industrial zone (QIZ) are eligible, when imported into the United States, for the “special” rate of duty set forth in the tariff schedule if the article is imported directly from the QIZ into the customs territory of the United States and if all other statutory requirements are met. The “special” duty rate for the three submitted garments under consideration is Free.

HOLDING:

The country of origin of the three submitted garments is Jordan. Based upon international textile trade agreements, products of Jordan are not presently subject to visa requirements or quota restraints.

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 sections 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 Mary Ryan at 646-733-3271.

Sincerely,

Robert B. Swierupski
Director,

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