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NY K86107




June 10, 2004

CLA2-RR:NC:WA:359 K86107

CATEGORY: CLASSIFICATION

Mr. Joseph M. Spraragen
Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP 399 Park Avenue, 25th Floor
New York, NY 10022-4877

RE: Classification and country of origin determination for a lady’s knit pullover; 19 CFR 102.21(c)(4)

Dear Mr. Spraragen:

This is in reply to your letter dated May 11, 2004. requesting a classification and country of origin determination for a lady’s knit pullover, which will be imported into the United States. This request was made on behalf of Great Wind International Limited and Hampshire Designers, Inc.

FACTS:

The subject merchandise consists of a lady’s pullover made of 100% cotton knit fabric, identified as style S04/325. The cotton fabric is a 1x1 rib knit fabric with more than 9 stitches per two centimeters measured in the horizontal direction. The garment features a boat collar and ¾ length sleeves. All of the component panels of the garment are knit-to-shape.

The component pieces that were submitted consist of:

A front panel with a self start bottom; full fashion marks around the knit-to- shape sleeve openings; and lines of demarcation at the neck opening. A back panel with a self start bottom; full fashion marks around the knit-to- shape sleeve openings; and lines of demarcation at the neck opening. Two knit-to-shape sleeves with self start sleeve openings and full fashion marks at the tops of the sleeves. Two knit-to-shape collar pieces

The manufacturing operations for the pullover are presented in two manufacturing scenarios as follows:

Scenario A

The front and the back panel will be knit-to-shape in Macau. The knit front and back panel components will then be sent to China where they will be assembled together with two sleeves and a collar that were knit-to-shape in China. After finishing operations, the complete garments will be returned to Macau and will be exported to the United States.

Scenario B

The back and two sleeves will be knit-to-shape in Macau. The knit back panel and the two sleeves will then be sent to China where they will be assembled together with a knit-to-shape front panel and a collar that were knit in China. After finishing operations, the garment will be returned to Macau and will be exported to the United States.

ISSUE:

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

CLASSIFICATION:

The applicable subheading for style S04/325 will be 6110.20.2075, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for Sweaters, pullovers, sweatshirts, waistcoats (vests) and similar articles, knitted or crocheted: Of cotton: Other: Other: Other: Women’s or girls’. The rate of duty will be 16.5% ad valorem.

Style S04/325 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

6101 - 6117 If the good is knit-to-shape, a change to heading 6101 through 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(e) states that the knit-to-shape process must take place in one country, territory or insular possession. Accordingly, as style S04/325 is knit-to-shape in both Macau and China, 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 of Scenario A knitting the front and back panels to shape in Macau constitute the most important assembly or manufacturing processes. Accordingly, the country of origin of style S04/325 for Scenario A is Macau.

In the case of the subject merchandise of Scenario B, knitting the sleeves and back panel to shape in Macau constitute the most important assembly or manufacturing processes. Accordingly, the country of origin of style S04/325 for Scenario B is Macau.

HOLDING:

The country of origin of style S04/325 for both scenarios is Macau. Based upon international textile trade agreements products of Macau are 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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