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 K80643 - NY K80691 > NY K80644

Previous Ruling Next Ruling
NY K80644





December 4, 2003

CLA2-61-RR:NC:TA-359: K80644

CATEGORY: CLASSIFICATION

Mr. Patrick Yeung
Come Long Fashion Knits, Ltd.
8/F Universal Industrial Bldg.
60-62 Sha Tsui Road
Tsuen Wan, New Territory,
Hong Kong

RE: Classification and country of origin determination for women’s knitwear; 19 CFR 102.21(c) (4); Commonwealth of the Northern Mariana Islands: General Note 3(a)(iv), HTSUSA; 19 CFR 7.3(d)

Dear Mr. Yeung:

This is in reply to your letter dated November 11, 2003, requesting a classification and country of origin determination for women’s knitwear that will be imported into the United States. The sample and its component panels are retained.

FACTS:

The subject merchandise consists of a woman’s knit, sleeveless dress, which extends from the neck and shoulders to the top of the knees of the wearer. The dress has a round neckline that in the front has a small v-shaped opening with a tie closure. The neckline is edged with a trim fabric through which a cord is threaded. It is this cord which closes the neckline. The arm openings, neckline and bottom of the dress are all hemmed. The fiber content is 100% cotton. There is a pouch pocket on the front panel of the dress, located at the midriff section. There is small embroidery consisting of an initialed monogram located on the upper left front section of the dress. You did not give a style number for this dress.

You have submitted the component panels in two versions, each of which shows the incomplete dress after processing in China.

Version #1 consists of the front and back panels, which are sewn together at the shoulders; the drawstring with neckband is attached to the body; and the v-shaped opening is created and hemmed. The embroidery is on the front of the dress and the pouch pocket, completely finished is sewn to the front of the dress. The side seams are not joined; the origin, trademark, care and sizing labels are attached; the arm openings are not hemmed and the bottom of the dress, consisting of the front and back panels, is not hemmed.

In Version #2 the front and back panels are separate and raw edged, with the exception of the v-shaped opening which is hemmed. The embroidery is on the front panel, the neckband has the cord threaded through it and is sewn shut, the labels are sewn together ready for sewing onto the garment; the care label is attached to the inside panel of the dress; and the pouch pocket, completely finished, is attached to the front panel of the dress.

The manufacturing operations for the dress are as follows:

Version #1

In China
-cut the component panels from the rolled fabric -thread the drawstring through the neckband, forming the neckband -attach the neckband and back neck binding to the front and back panels -sew embroidery to the front panel
-sew the pouch pocket to the front panel
-sew the v-shaped placket
-sew the shoulder seams closed, joining the front and back panels -attach the neck labels (brand, size and origin labels) -attach the care label to the back panel

In the Commonwealth of the Northern Mariana Islands (CNMI) -sew side seams closed
-hem the arm openings
-hem the bottom of the dress
-inspect, iron and pack the garment for export directly to the United States

Version #2

In China
-cut fabric into component panels
-thread the drawstring through the neckband, forming the neckband -sew embroidery to the front panel
-sew the pouch pocket to the front panel
-sew the v-shaped placket
-attach the neck labels (brand, size and origin labels) -attach the care label to the back panel

In the CNMI
-sew front and back panels together at the shoulder seams -attach neckband and neckband binding to the front and back panels -sew side seams closed
-hem the arm openings
-hem the bottom
-inspect, iron and pack the garment for export directly to the United States

ISSUE:

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

CLASSIFICATION:

The applicable subheading for the woman’s knitted sleeveless dress will be 6104.42.0010, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for women’s or girls’ suits, ensembles, suit-type jackets, blazers, dresses, skirts, , knitted or crocheted: dresses: of cotton: women's. The general rate of duty will be 11.6% ad valorem. In 2004, the general rate of duty will be 11.5% ad valorem.

The dress falls within textile category designation 336. 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

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.

Section 102.21(e) states that the good must be assembled in a single country, territory or insular possession. Accordingly, as the dress, according to the processing operation described in your Versions #1 and #2, is assembled in more than one country, territory or insular possession, it does not satisfy the conditions of the tariff shift. Therefore, Section 102.21(c)(2) is inapplicable to both Version #1and #2. Consequently, we must continue to examine the rules for country of origin in their proper order.

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, under the processing operations described as Version #1and Version #2, 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 dress, the following constitute the most important assembly processes under your Version #1: -sewing the neckline with the drawcord to the panels -sewing the pocket to the front panel,
-sewing the v-placket to the front panel
-sewing the front and back panels together at the shoulders all of which occur in China

Accordingly, the country of origin of the woman’s dress, under the assembly process described in Version #1, is China.

In the case of the subject merchandise, the woman’s dress, the following constitute the most important assembly processes under your Version #2: -attaching the neckband and neckband binding to the panel -sewing the front and back panels together at the shoulders -sewing the side seams closed all of which occur in the CNMI.

Accordingly, the country of origin of the woman’s dress, under the assembly process described in Version #2, is the CNMI

General Note 3(a)(iv), HTSUSA, permits products of insular possessions of the United States, of which the CNMI is one, to be imported into the United States free of duty obligations if certain requirements are met. Duty free status is granted to those goods which (1) are the growth or product of the possession; or (2) are manufactured or produced in any such possession from materials which are the growth, product or manufacture of any such possession or of the customs territory of the United States, or of both; and (3) do not contain foreign materials which represent more than 50% of the goods total value (for textile and apparel articles subject to textile agreements); and (4) are shipped directly to the customs territory of the United States from the insular possession.

You have not presented sufficient information regarding value which would allow us to comment upon the application of this note.

HOLDING:

The country of origin of the woman’s knitted dress under Version #1 is China and under Version #2 is the Commonwealth of the Northern Mariana Islands.

Based upon international textile trade agreements products of China are subject to quota restraints and the requirement of a visa. The dress, as produced in Version #1 is a product of China and, as such, is subject to quota restraints and the requirement of a visa. Since the CNMI is not a foreign country and therefore, the United States has no quota or visa agreement with it, the dress, as produced in Version #2, is neither subject to quota restraints nor to 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,

Previous Ruling Next Ruling

See also: