United States International Trade Commision Rulings And Harmonized Tariff Schedule
faqs.org  Rulings By Number  Rulings By Category  Tariff Numbers
faqs.org > Rulings and Tariffs Home > Rulings By Number > 2003 NY Rulings > NY J80451 - NY J80502 > NY J80486

Previous Ruling Next Ruling
NY J80486




February 13, 2003

CLA2-RR:NC:TA:357 J80486

CATEGORY: CLASSIFICATION

Mr. Anthony A. Tonucci
Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP 245 Park Avenue
New York, NY 10167-3397

RE: Classification and country of origin determination for a man’s woven jacket; duty-free treatment for products of the West Bank, Gaza Strip, or a Qualifying Industrial Zone; General Note 3(a)(v); 19 C.F.R.§102.21(c)(4); T.D. 98-62

Dear Mr. Tonucci:

This is in reply to your letter dated January 27, 2003, requesting a classification and country of origin determination for a men’s woven jacket which will be imported into the United States. Samples were submitted and are being returned.

FACTS:

The subject merchandise consists of a men’s outerwear jacket with a woven 85% polyester/15% nylon shell and a double-face knit pile lining in the body. It has a nylon sleeve lining with a nonwoven batting.

The manufacturing operations for the jacket are as follows:

China:

Shell fabric (probably of Chinese origin) cut into shaped components Interlining sewn to front panels
Pockets formed and sewn to front panels
Snaps/button attached to pockets
Front panels joined and zipper sewn to front panels Back panels joined and sewn
Interlining sewn to sleeve panels
Sleeve panels formed and sewn closed
Collar formed
Cuffs formed and sewn to sleeve panels
Interlining sewn to back panel
Front and back panels partially sewn at the shoulder seams near the neck seams (approximately less than 1/3 of the length of each shoulder) Collar sewn to body of garment
Elastic band set inside waist
Part of waistband joined/hemmed to front panel (a large portion of the waistband is not linked to the body) Buttonholes formed and buttons attached

Irbid, QIZ:

Remainder of shoulder seams sewn joining front and back panels Side seams joining front and back panels sewn Sleeves sewn to front and back panels at armholes Bottom hemmed
Trim and finish
Country of origin label attached
Wash and press
Final quality control
Packing
Load and ship to U.S.

ISSUE:

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

CLASSIFICATION:

Based on information you provided indicating that the shell fabric is treated with Dupont Teflon to render it water resistant, the applicable subheading for the jacket will be 6201.93.3000, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for men’s or boys’ anoraks (including ski jackets), windbreakers and similar articles, of man-made fibers, water resistant. The rate of duty will be 7.2 percent ad valorem.

This jacket falls within textile category designation 634. 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.

The U.S. Trade Representative and the Governments of Jordan and Israel 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] agreed 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 the Uruguay Rounds Act, 19 U.S.C. §3592.”

General Note 3(a) (v) (G) HTS, 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 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 dated July 13, 1998, 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.

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 foreign material 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

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

Section 102.21(e) states that the good must be completely assembled in a single country, territory or insular possession. Accordingly, as the subject merchandise does not meet this requirement, 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, 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 merchandise, the completion of the shoulder seam sewing, the joining of the front and back panels at the side seams and the sewing of the sleeves at the armholes constitute the most important assembly processes. Accordingly, the country of origin of the jacket is 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 (QIZ), provided certain requirements are met. Such treatment was effective for products of the West Bank, Gaza Strip or QIZ entered or withdrawn from warehouse for consumption on or after November 21. 1996.

Under General Note 3 (a) (v), HTSUS, articles the products of the West Bank, Gaza Strip or a QIZ which are imported directly to the U.S. from the West Bank, Gaza Strip, a QIZ or Israel, qualify for duty-free treatment, provided the sum of (1) the cost or value of materials produced in the West Bank, Gaza Strip, a QIZ or Israel, plus (2) the direct costs of processing operations performed in the West Bank, Gaza Strip, a QIZ or Israel, is not less than 35 percent of the appraised value of such articles when imported into the U.S. An article is considered to be a product of the West Bank, Gaza Strip, a QIZ if it is either wholly the growth, product or manufacture of one of those areas or a new and different article of commerce that has been grown, produced or manufactured in one of those areas.

With respect to the requirement that the articles be imported directly, General Note 3 (a) (v) (B)(1) provides that:

“Articles are “imported directly” for purposes of this paragraph if—
they are shipped directly from the West Bank, the Gaza Strip, a qualifying industrial zone or Israel into the United States without passing through the territory of any intermediate country;”

You have indicated that the garment will be imported directly from Irbid, QIZ, and that the cost of materials and direct costs of processing will be sufficient for the 35 percent requirement to be met.

HOLDING:

The country of origin of the jacket is Jordan, and it is eligible for a free rate of duty under the United States-Israel Free Trade Agreement. Based upon international textile trade agreements products of Jordan are neither subject to quota 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 W. Raftery at 646-733-3047.

Sincerely,

Robert B. Swierupski
Director,

Previous Ruling Next Ruling

See also: