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NY K89512




September 15, 2004

CLA2-61-RR:NC:TA:359:K89512

CATEGORY: CLASSIFICATION

Mr. Ego Leung
Come Long Fashion Knits Limited
2/F, Yick Shiu Industrial Building
No. 1, San On Street
Tuen Mun, N.T.
Hong Kong

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

Dear Mr. Leung:

This is in reply to your letter dated September 10, 2004, in which you requested a classification and country of origin determination for women’s knitwear that will be imported into the United States. Your sample and its component parts are returned as requested.

FACTS:

The subject merchandise consists of Style A09966, a ladies knit cardigan which features a self fabric hood, a full front zippered opening, long hemmed sleeves, front kangaroo pockets, an embroidered appliqué affixed to the front pocket, and two side vents. The back of the garment is made up of a yoke and two panels, which are joined vertically with a center seam. The fiber content of the garment is 95% cotton and 5% spandex.

Two manufacturing scenarios were presented. You have submitted the finished garment and the garment in its partial assembly stages for Version A, and Version B.

The sample of Version A, representing the steps taken in China consists of three pieces: each sleeve is assembled and hemmed; and as one unit: the front and back panels, joined at the shoulder seams, with the hood attached, with the pockets completed and attached, the zipper and front placket completed, contrasting fabric tape outlining the hood and front placket sewn in place, and the bottom hemmed.

The sample of Version B, representing the steps taken in China consists of three pieces: each sleeve is assembled and hemmed; and as one unit: the front and back panels, joined at the shoulder seams, with the hood attached, with the pockets completed and attached, and the bottom hemmed. The front placket is not sewn, the zipper is not attached, the sleeves are not attached, nor is the contrasting tape sewn along the outline of the hood and front.

The manufacturing operations for the woman’s knit cardigan are as follows:

VERSION A:

CHINA

Cut the fabric into component parts
Sew the shoulder seams attaching the front and back panels Form the hood and attach it to the front and back panels Join the two back pieces of the back panel Attach the pockets on the front panels
Sew the underarm sleeves
Sew the trim to the interior front placket and the hood Sew the zipper closure to the front panels Attach the embroidery appliqué to the pocket Hem the bottom and cuffs

COMMONWEALTH OF THE NORTHERN MARIANA ISLANDS (CNMI)

Sew the sleeves to the body
Sew the side seams joining the front and back panels at the sides Sew the tape to form the side vents
Attach the labels
Iron and finish the garment
Inspect and pack the garment

VERSION B:

CHINA

Cut the fabric into component parts
Sew the shoulder seams to join the front and back Form the hood and attach it to the front and back panels Join the two pieces of the back panel
Attach the pockets to the front panels
Close the underarm of the sleeves
Sew the trim fabric to the interior of the hood Attach embroidery appliqué to the pocket Hem the bottom and sleeves

CNMI

Attach the sleeves to the body
Sew the trim to the front placket
Sew the zipper closure to the front panels Sew the side seams joining the front and back panels at the sides Sew the trim to form the side vents
Attach the labels
Iron and finish
Inspection
Packing

ISSUE:

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

CLASSIFICATION:

The applicable subheading for the woman’s knitted cardigan 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: Women’s or girls. The general rate of duty is 16.5% ad valorem.

The cardigan 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 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":

HTSUSA 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 cardigan is assembled in more than one country, territory or insular possession, it does not satisfy the conditions of the tariff shift and therefore, 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, territory or insular possession 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 cardigan, the most important assembly processes in Version A are sewing the shoulder seam to join the front and back panels at the shoulder; attaching the hood to the front and back panels; sewing the pockets on the panels; sewing the sleeves closed; and sewing the zipper closure on the front panels; all of which occur in China.

Accordingly, the country of origin of the woman’s knitted cardigan as presented in Version A is China.

In the case of the subject merchandise, the woman’s knitted cardigan, the most important assembly processes in Version B are attaching the sleeves; sewing the front zipper to both front panels with the placket; sewing the side vents; and sewing the side seams; all of which occur in the CNMI.

Accordingly, the country of origin of the woman’s knitted cardigan as presented in Version B is the CNMI.

HOLDING:

The country of origin of the garment is China in Version A. Based upon international textile trade agreements products of China are subject to quota and the requirement of a visa.

The country of origin of the woman’s knitted cardigan is the Commonwealth of the Northern Mariana Islands in Version B. Since the CNMI is not a foreign country and therefore, the United States has no quota or visa agreement with it, the cardigan 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 Camille R. Ferraro at 646-733-3049.

Sincerely,

Robert B. Swierupski
Director,

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