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NY K80212




November 13, 2003

CLA2-61:RR:NC:TA-359:K80212

CATEGORY: CLASSIFICATION

Ms. Brenda A. Jacobs
Sidley, Austin, Brown & Wood, LLP
1501 K Street, N.W.
Washington, D.C. 20005

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

Dear Ms. Jacobs:

This is in reply to your letter dated October 29, 2003, submitted on behalf of your client, Hoi Meng Garment Manufacturing, Ltd., that requests a classification and country of origin determination for women’s knitwear which will be imported into the United States. We are returning your sample, as requested.

FACTS: The subject merchandise consists of Style E 08969, a woman’s knitted jacket that consists of 100% cotton fibers. The jacket features a full-front opening with a zipper closure; a stand-up collar which has decorative piping and a tab without a closure; a rib knit waistband; long sleeves with rib knit cuffs; two side-entry pockets at the waist in the front; four woven fabric overlays along each side under the armholes; decorative embroidery and appliques showing trade names and logos at the chest in the front; a half-moon sweat patch on the inside at the neck; an elbow patch of textile fabric on the outside of each sleeve; and decorative piping in the seams of the sleeves and the seams of the body fabric. The knitted fabric of the jacket is napped on one side and it has more than nine stitches per two centimeters, measured in the direction in which the stitches were formed. Each completed front panel consists of three strips of assembled knitted fabric sewn together. The completed back panel consists of five strips sewn together. (In your submission you note that snaps are attached to the collar tab of the finished jacket at the end of the manufacturing process which you term “Stage 3”).

You divide the manufacturing process into three stages. Stage1 and Stage 3 take place in Country A, while Stage 2 occurs in Country B. Your completed, final production sample represents the manufactured garment at the end of Stage 3. You also submit the partially assembled parts of the jacket as they appear at the end of Stage 1 (Country A). These parts include the two front panels completely formed. Each panel consists of three knitted strips sewn together. The two strips intended for use under the armhole are covered with woven fabric overlays and the decorative piping is in place at the seams. The side pockets, the embroidery and the appliques are attached. This stage also includes the fully formed back panel that has five knitted strips sewn together. The inside half-moon sweat patch, the decorative piping and the four woven fabric overlays are all attached. Lastly, this stage includes the fully formed sleeve panels with the textile elbow patch and the decorative piping attached.

The manufacturing operations for the woman’s knitted jacket are as follows: In Country A -cut fabric into component parts
-sew strips to form completed front panels and completed back panel (inserted following conversation with attorney) -sew half-moon sweat patch to back panel
-embroider and applique front panels
-construct pockets and sew to front panels -sew woven overlays
-cut strips for piping and sew along seams -sew elbow patch to sleeves;

In Country B
-sew fully assembled front and back panels at the shoulder seams -sew sleeve panels to body
-sew side and underarm seams;

In Country A
-construct collar (including piping)
-sew collar to neck
-sew waistband to body
-sew cuffs to sleeves
-sew front placket with zipper to body
-attach snaps to collar
-sew labels to garment.

ISSUE:

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

CLASSIFICATION:

The applicable subheading for the woman’s knitted jacket, style E 08969, will be 6102.20.0010, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for women’s --- windbreakers and similar articles, knitted or crocheted, other than those of heading 6104: of cotton: women’s. The rate of duty will be 16% ad valorem.

The jacket falls within textile category designation 335. 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 Textile Status Report for Absolute Quotas, which is available at our Web site at www.cbp.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:

Section 334 of the Uruguay Round Agreements Act (codified at 19 U.S.C. 3592), enacted on December 8, 1994, provided rules of origin for textiles and apparel entered, or withdrawn from warehouse for consumption, on and after July 1, 1996. Section 102.21, Customs Regulations (19 C.F.R. 102.21), published September 5, 1995, in the Federal Register, implements Section 334 (60 FR 46188). Section 334 of the URAA was amended by section 405 of the Trade and Development Act of 2000, enacted on May 18, 2000, and accordingly, section 102.21 was amended (68 Fed. Reg. 8711). Thus, the country of origin of a textile or apparel product shall be determined by the 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

6102.20 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 the jacket is assembled in more than one country, territory or insular possession, it does not satisfy the conditions of the tariff shift and 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, 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 woman’s knitted jacket, the following constitute the most important assembly processes: -the sewing of the fully assembled front and back panels at the shoulder seams -the sewing of the sleeves to the body and -the sewing of the side and underarm seams, all of which occur in Country B.

Accordingly, the country of origin of the woman’s knitted jacket, Style E 08969, is Country B.

HOLDING:

The country of origin of the woman’s knitted jacket, Style E 08969, is Country B. Based upon international textile trade agreements products of Country B may be subject to the restraints of quota and 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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