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HQ 967172





July 13, 2004

CLA-2 RR:CR:TE 967172 KSH

CATEGORY: CLASSIFICATION

TARIFF NO.: 6102.30.2010

Gayle E. Williams
Sears, Roebuck and Co.
Dept 733IMP-D5-257BB
3333 Beverly Road
Hoffman Estates, IL 60179

RE: Country of origin, classification and quota category of a woman’s knit poncho

Dear Ms. Williams:

This is in reply to your letter dated May 3, 2004, requesting a country of origin determination, classification and quota category determination for a woman’s knit poncho which will be imported into the United States. Samples of the poncho in its unfinished and finished state were submitted to this office for examination.

FACTS:

The sample, identified as style WH4CV1738A, is a woman’s knit poncho that is composed of 45% nylon, 40% rayon, 5% cashmere, 5% wool and 5% angora. The poncho is worn by pulling it over the wearer’s head. It has no sleeves but covers the wearer’s body from the neck and shoulders to below the waist. It also covers the wearer’s arms to below the elbows. The neck opening and edges of the poncho are trimmed with knit capping. The unfinished poncho consists of a rectangular shaped piece of fabric measuring 64 inches in length by 27 inches in width. In its uncompleted condition, the poncho features a self start bottom and finished edges at all of its sides. Three sides of the fabric and that portion of the fabric which will form the neck opening are capped at the edges. The neck opening measures approximately 30 inches in length. The poncho is finished by folding the rectangular fabric in half and sewing closed the uncapped edges of the fabric below the neck opening to create a center seam. The poncho is knit in the United Kingdom and is assembled in China.

ISSUE:

What is the country of origin, classification and quota category of the subject merchandise?

LAW AND ANALYSIS:

CLASSIFICATION:

The applicable subheading for the poncho will be 6102.30.2010, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for women's overcoats...capes...and similar articles, knitted or crocheted, other than those of heading 6104, of man-made fibers, other, other, women's. The rate of duty will be 28.2% ad valorem.

COUNTRY OF ORIGIN:

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at 19 U.S.C. 3592), enacted on December 8, 1994, provided rules of origin for textiles and apparel entered, or withdrawn from warehouse for consumption, on and after July 1, 1996.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 Fed. Reg. 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 sequential application of the general rules set forth in paragraphs (c)(1) through (5) of Section 102.21.

The poncho is knit in the United Kingdom. The poncho is subsequently assembled in China.

Paragraph (c)(1) of section 102.21 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)(1) states, in relevant part, 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:”

6101-6117 (3) If the good is knit to shape, except for goods of subheading 6117.10 provided for in paragraph (e)(2) of this section, a change to 6101 to 6117 from any heading outside that group, provided that the knit to shape components are knit in a single country, territory or insular possession.

Section 102.21(b) states in relevant part:

(3) Knit to shape. The term knit to shape applies to any good of which 50 percent or more of the exterior surface area is formed by major parts that have been knitted or crocheted directly to the shape used in the good, with no consideration being given to patch pockets, appliques, or the like. Minor cutting, trimming, or sewing of those major parts will not affect the determination of whether a good is “knit to shape.”

(4) Major parts. The term major parts means integral components of a good but does not include collars, cuffs, waistbands, plackets, pockets, linings, paddings, trim, accessories, or similar parts.

For knit to shape goods, the terms of section 102.21(c)(2) make clear that a change to heading 6101 through 6117 must occur from any heading outside that group. The poncho consists of one component part, a rectangular piece of material. The poncho is knit to shape inasmuch as 50 percent or more of the exterior surface area is formed by a major part that has been knitted or crocheted directly to the shape used in the good. Although the “major part” is the rectangular fabric, this “fabric” is finished on all sides in the knitting process and is used in its “shape” as knitted in the finished good without any cutting. The capping used to trim the edges and neck of the poncho is not a major part and does not affect consideration of whether the poncho is knit to shape. See Headquarters Ruling Letter (HQ) 965962, dated January 8, 2003. Therefore, the tariff shift rule for heading 6102, HTSUSA, is inapplicable.

Paragraph (c)(3) states in relevant part, “Where the country of origin of a textile of 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[.]

The rectangular “fabric” and capping is knit in the United Kingdom. Therefore, the country of origin of the poncho is the United Kingdom.

HOLDING:

The poncho is classified in subheading 6102.30.2010, HTSUSA, which provides for women's overcoats...capes...and similar articles, knitted or crocheted, other than
those of heading 6104, of man-made fibers, other, other, women's. The rate of duty will be 28.2% ad valorem.

The country of origin of the poncho is the United Kingdom, the country in which it is knit to shape. As a product of the United Kingdom, the poncho is not subject to quota/visa requirements.

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 is issued on the assumption that all of the information furnished in the ruling letter, either directly, by reference, or by implication, is accurate and complete in every material respect.

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 CBP, it is recommended that a new ruling request be submitted in accordance with 19 CFR 177.2.

Sincerely,

Myles B. Harmon, Director
Commercial Rulings Division

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