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NY K85131




May 10, 2004

CLA2-61:RR:NC:TA-359:K85131

CATEGORY: CLASSIFICATION

Mr. Joey Hui
Asst. Production Planning Controller
C/O Ms. Alyssa Tan or Ms. Sharon Lim
Ghim Li Enterprise (USA), Inc.
501 Seventh Avenue, Suite 509
New York, New York 10018

RE: Classification and country of origin determination for women’s knitwear; 19 CFR 102.21(c)(2) and (c)(4)

Dear Mr. Hui:

This is in reply to your letter dated April 13, 2004, requesting a classification and country of origin determination for women’s knitwear that will be imported into the United States. You requested a ruling for two styles but you submitted only one sample, that is, the sample of a woman’s knitted sweatshirt. This ruling concerns only the woman’s knitted sweatshirt. That sample is returned, as you requested.

FACTS:

The subject merchandise consists of Style109573A, a woman’s knit sweatshirt which has a fiber content of 80% cotton, 20% polyester (the body), 97% cotton, 3% spandex (the rib knit trim), and 100% cotton (the hood lining). The sweatshirt features long, raglan sleeves with rib knit cuffs; a rib knit waistband; a permanently attached hood which has a knit lining but no means closure; a kangaroo pocket in the front at the waist; and a decorative applique (the word “sideout”), embroidery (the word “racing”), as well as a printed design on the chest. There is also a printed design on the sleeves. The inside fabric of the sweatshirt is fully napped.

You have also submitted the unfinished components for one version of this sample. These components include

*the back panel and the front panel which have the complete rib knit waistband sewn to each panel and which are themselves partially sewn at the side seams, including the waistband area; the kangaroo pocket is sewn to the front panel and all the decorative features are present on it;

*the two sleeve panels to which the rib knit cuffs are sewn and the printed design added; the sleeve seams are partially sewn;

*the constructed hood, including the lining. These components represent your intention to show the condition of the unfinished sweatshirt after it is processed in the first country; however they accurately describe the unfinished sweatshirt as it appears in ONLY the first production plan out of the four that you have proposed.

The manufacturing operations for the woman’s knitted sweatshirt, according to the four production plans that you submitted, are as follows:

Under Production Plan I
In Country A
-make and mark the pattern
-cut the fabric into component panels and parts -embroider, sew applique and print the front panel at the chest and print the sleeves
-construct the hood including the lining
-partially sew the side seams of the front and back panels -sew the waistband to the body
-partially sew the sleeve side seams
-sew the rib knit cuffs to the sleeves
-sew the pocket to the front panels;

In Country B
-complete the sewing of the sleeve seams
-sew the raglan sleeves to the body
-sew the hood to the body
-attach care labels
-complete the sewing of the side seams
-inspect and pack the garment;

Under Production Plan II
In Country A
-make and mark the pattern
-cut the fabric into component panels and parts -embroider, applique and print the front panel at the chest and print the sleeves -construct the hood including the lining
-partially sew the side seams
-sew the rib waistband to the body
-partially sew the sleeve seams
-sew the rib knit cuffs to the sleeves

In Country B
-sew the pocket to the front panel
-complete the sewing of the sleeve seams
-sew the raglan sleeves to the body
-sew the hood to the body
-attach care labels
-complete the sewing of the side seams
-inspect and pack the garment

Under Production Plan III
In Country A
-make and mark the pattern
-cut the piece goods into component panels and parts -embroider, applique and print the front panels and print the sleeves -construct the hood, including the lining -sew the pocket to the front panel

In Country B
-sew the sleeve seams
-sew the raglan sleeves to the body
-sew the hood to the body
-attach care label
-sew the side seams
-sew the rib waistband to the body
-inspect and pack

Under Production Plan IV
In Country A
-make and mark the pattern
-cut the fabric into component parts and panels -embroider, applique and print the front panel and print the sleeves

In Country B
-sew the pocket to front panel
-sew the sleeve seams
-sew the raglan sleeves to the body
-construct the hood, including the lining -sew the hood to the body
-attach care labels
-sew the side seams
-sew the waistband to the body
-inspect and pack the garment.

Concerning your proposed production plans for this style, we note that two of them, namely, Production Plans I and II, undertake a partial sewing operation on one or more significant seams of the garment during the processing in one of the producing countries, while finishing these same seams in the second country. Since you have offered no rational, satisfactory commercial or engineering explanation why you are performing a simple sewing operation in two separate countries, we are declining to render a decision on the country of origin of the garment for Production Plans I and II. Additionally, we note that the sample that you submitted for our examination shows no evidence of the claimed partial sewing on the seams indicated on the listing of the steps in the production plans.

ISSUE:

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

CLASSIFICATION:

The applicable subheading for the woman’s knitted sweatshirt, Style 109573A, will be 6110.20.2045, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for sweaters, pullovers, sweatshirts --- and similar articles, knitted or crocheted: of cotton: other: other: sweatshirts: women’s. The rate of duty will be 16.5% ad valorem.

The sweatshirt 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 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

6110.20 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 heading 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)(4) defines “major parts” as follows: The term “major parts” means integral components of a good but does not include collars, cuffs, waistbands, plackets, pockets, linings, paddings, accessories, or similar parts.

Paragraph (b)(6) defines the term “wholly assembled”: The term “wholly assembled” when used with reference to a good means that all components, of which there must be at least two, pre-existed 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.

Section 102.21(e) states that the good must undergo a change from component parts to a finished product and that the change must be the result of the assembly taking place wholly in a single country, territory or insular possession. Under your Production Plan IV, the women’s knitted sweatshirt, which is not knit to shape but which does undergo a classification change from the parts of heading 6117 to the finished good of heading 6110, and which is wholly assembled in a single country, namely in Country B, thereby conforming to the terms of the tariff shift, has as its country of origin Country B.

However, under your Production Plan III, the sweatshirt is not wholly assembled in a single country, territory or insular possession. Accordingly, as the tariff shift does not take place, the sweatshirt does not qualify and Section 102.21(c)(2) is inapplicable to that production plan. We, therefore, must continue to seek a determination of the country of origin for the sweatshirt that is produced under Production Plan III, according to the remaining sequential rules.

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, under Production Plan III, 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, that is, of the sweatshirt, Style 109573A, according to Production Plan III, the following constitute the most important assembly processes:

For Production Plan III
-the sewing of the raglan sleeves to the body -the sewing of the hood to the body
-the sewing of the side seams and
-the sewing of the rib knit waistband to the body, all of which occur in Country B;

Accordingly, the country of origin of the woman’s knitted sweatshirt, Style 109573A , under Production Plan III, is Country B.

HOLDING:

The country of origin of the woman’s knitted sweatshirt, Style 109573A, under Production Plan IV, is Country B, Customs Regulations, Section 102.21(c)(2). The country of origin of the woman’s knitted sweatshirt, Style 109573A, under Production Plan III is Country B, Customs Regulations, Section 102.21(c)(4). Based upon international textile trade agreements these products of Country B may be subject to 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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