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NY N023282




March 11, 2008

CLA-2-OT:RR:NC:TA:N3:356

CATEGORY: CLASSIFICATION

Mr. Larry Ordet
Sandler, Travis & Rosenberg, P.A.
The Waterford
5200 Blue Lagoon Drive
Miami, FL 33126-2022

RE: Classification and country of origin determination for a men’s woven shirt; 19 CFR 102.21 (c)(4); most important assembly; Marking; 19 CFR 134.32; 19 CFR 134.46

Dear Mr. Ordet:

This is in reply to a letter submitted on behalf of The Apparel Group, requesting a classification, country of origin, and marking determination for a men’s woven dress shirt, of cotton. You state that the shirt components will be cut to shape in Malaysia and the components will be assembled in Malaysia and the United States. You also state that all of the components of the shirt will be shipped to the United States on the same vessel.

The manufacturing operations for the shirt are as follows:

MALAYSIA:

The fabric is cut into component parts;
The collar assembly is formed;
The sleeve cuffs are formed;
The placket is sewn to the sleeve panel;
The buttonholes are made on the collar (if applicable), neckband, placket and cuffs; The buttons are attached;
The labels, including the country of origin label, are sewn to the back panel; The pleats are made on the back panel;
The yoke is attached to the back panel;
The embroidery (when required) is applied to the left front panel.

UNITED STATES:

The front and back panels and the shoulder yoke are joined; The sleeves are attached to the garment body; The collar is attached to the shirt body; The side seams are closed;
The sleeve seams are closed;
The cuffs are attached;
The bottom is hemmed;
The garment is inspected, trimmed, pressed and packed.

ISSUE:

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

CLASSIFICATION:

The applicable subheading for the cotton shirt is in 6205.20.20, Harmonized Tariff Schedule of the United States, (HTSUS), which provides for: men’s or boys’ shirts, of cotton. The general rate of duty is 19.7% ad valorem.

Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the World Wide Web at http://www.usitc.gov/tata/hts/.

The shirt falls within textile category designation 340. With the exception of certain products of China, quota/visa requirements are no longer applicable for merchandise which is the product of World Trade Organization (WTO) member countries. The textile category number above applies to merchandise produced in non-WTO member-countries. Quota and visa requirements are the result of international agreements that are subject to frequent renegotiations and changes. To obtain the most current information on quota and visa requirements applicable to this merchandise, we suggest you check, close to the time of shipment, the “Textile Status Report for Absolute Quotas” which is available on our web site at www.cbp.gov. For current information regarding possible textile safeguard actions on goods from China and related issues, we refer you to the web site of the Office of Textiles and Apparel of the Department of Commerce at otexa.ita.doc.gov.

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

6201-6208 If the good consists of two or more component parts, a change to an assembled good of heading 6201 through 6208 from unassembled components, provided that the change is the result of the good being wholly assembled in a single country, territory, or insular possession.

Although the garment consists of two or more component parts, it is not wholly assembled in a single country, territory or insular possession. Accordingly, as the terms of the tariff shift are not met, 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”:

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

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.

Since the garment 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, the assembly processes in the United States, consisting of joining the front and back panels and the shoulder yoke, attaching the sleeves, attaching the collar, closing the side seams, closing the sleeve seams, and attaching the cuffs constitute the most important assembly processes.

Accordingly, under Section 102.21 (c)(4), the country of origin of the shirt is the United States, the country in which the most important assembly processes occur.

MARKING:

You state that you believe the finished shirt may be marked "Made in” or "Assembled in” the “U.S. from imported components,” or some substantially similar wording. If a good is determined to be an article of U.S. origin, it is not subject to the country of origin marking requirements of 19 U.S.C. §1304. Whether an article may be marked with the phrases you mention or similar words denoting U.S. origin, is an issue under the authority of the Federal Trade Commission. We suggest that you contact the Federal Trade Commission, Division of Enforcement, 600 Pennsylvania Avenue, N.W., Washington, D.C. 20580 on the propriety of the proposed markings.

You also state that the outer carton of the shirt components will be marked with the origin of the components, that is, Malaysia. However, because one of the components, namely the back panel component, will contain a sewn-in label that references the United States, the provisions of 19 CFR 134.46 are triggered.

Specifically, 19 CFR 134.46 requires that, in instances where the words “United States,” or “American,” the letters “U.S.A.,” any variation of such words or letters, or the name of any city or location in the U.S., or the name of any foreign country or locality other than the name of the country or locality in which the article was manufactured or produced, appears on an imported article or its container, and those words, letters or name may mislead or deceive the ultimate purchaser as to the actual country of origin of the article, there shall appear, legibly and permanently, in close proximity to such words, letters or name, and in at least a comparable size, the name of the country of origin preceded by "Made in," "Product of," or other words of similar meaning.

Section 134.1 (d) defines the ultimate purchaser as generally the last person in the United States who will receive the article in the form in which it was imported. In this situation, you state that the U.S. assembler will be the last person in the United States who will receive the components in the condition as imported. You state that the U.S. assembler will be aware of the origin of the components not only from the carton marking but from commercial documentation, such as invoices. 19 CFR 134.32 enumerates general exceptions to the marking requirements. 19 CFR 134.32 (d) allows an exception to the marking requirements for “Articles for which the marking of the containers will reasonably indicate the origin of the articles.”

HOLDING:

The country of origin of the shirt is the United States. The country of origin marking of the finished shirts falls under the authority of the Federal Trade Commission.

Since the imported components will be assembled into a finished garment in the United States, and since the ultimate purchaser, who is the U.S. assembler, will know the origin of the components by the marking that is present on the outer cartons, the individual components are exempted from marking under 19 CFR 134.32 (d). If the port director is satisfied that the imported components will remain in the marked outer cartons until they reach the ultimate purchaser, then marking the outer cartons as stated will satisfy the marking requirements of 19 CFR 134.46.

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 Mary Ryan at 646-733-3271.

Sincerely,

Robert B. Swierupski
Director,

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