Country of origin of T-shirts; 19 CFR 102.21; wholly assembled

HQ 561414 September 22, 1999 MAR-2 RR:CR:SM 561414 KSG CATEGORY: Marking Robert L. Eisen, Esq. Coudert Brothers 114 Avenue of the Americas New York, NY 10036-7703 RE: Country of origin of T-shirts; 19 CFR 102.21; wholly assembled Dear Mr. Eisen: This is in response to your letter dated June 10, 1999, on behalf of Marshall Islands Ocean Development Inc. requesting a ruling on the country of origin of imported T-shirts. A sample was submitted for examination. FACTS: Unisex cotton T-shirts classified in subheading 6109.10.00 will be imported into the U.S. You presented four different manufacturing scenarios. The first scenario involves tubular cotton knit fabric of Chinese or Taiwanese origin which will be used to make the T-shirt body. In China or Taiwan, the fabric will be sized and cut to corresponding size lengths, a neck opening and armholes will be cut, and sleeve pieces and a collar will be cut. The four pieces (the two sleeves, collar and tubular body piece) will be sent to the Marshall Islands where the sleeves and collar will be attached to the T-shirt body, the shoulder seams will be sewn, and the sleeves and bottom of the T-shirts will be hemmed. In the second scenario, the processing is the same as in scenario one but the sleeves and bottom of the T-shirt body will be hemmed in China or Taiwan. The four pieces (the two sleeves, collar and tubular body piece) will be sent to the Marshall Islands where the sleeves and collar will be attached to the T-shirt body, and the shoulder seams will be sewn. In scenario three, cotton knit fabric of Chinese or Taiwanese origin will be cut into front and back panels, a collar and sleeves in China or Taiwan. The cut pieces will be sewn in the Marshall Islands, which includes side seams, shoulder seams, attachment of the sleeves and collar, and hemming of the sleeves and T-shirt bottoms. Scenario four is the same as scenario three except that the sleeves and front and back panels will be hemmed in China or Taiwan before being assembled in the Marshall Islands. ISSUE: What is the country of origin of the imported T-shirts based on the above scenarios? LAW AND ANALYSIS: Section 304 of the Tariff Act of 1930, as amended, 19 U.S.C. 1304, provides that, unless excepted, every article of foreign origin (or its container) imported into the U.S. shall be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article (or its container) will permit, in such a manner as to indicate to the ultimate purchaser in the U.S. the English name of the country of origin of the article. Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. Section 334 of the Uruguay Round Agreements Act (“Section 334")provides new 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 CFR 102.21) implements section 334. Pursuant to 19 CFR 102.21, 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 (c)(5). 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, 19 CFR 102.21(c)(1) 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.” The T-shirts are classified in heading 6109, HTSUS. Section 102.21(e) states that for goods classified in headings 6101-6117, HTSUS,: (1) 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.... The term “wholly assembled” is defined in 19 CFR 102.21(b)(6) to mean that: ...all components, of which there must be at least two, preexisted 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. In this case, the T-shirts are not knit to shape and consist of more than two components. Therefore, the issue is whether the T-shirts are wholly assembled in a single country, territory or insular possession under the four scenarios. In scenarios two and four, components are hemmed in China or Taiwan and then assembled in the Marshall Islands. Customs stated in Headquarters Ruling Letter (“HRL”) 961125, dated December 30, 1997, that applying 19 CFR 102.21(c)(2), hemming operations are not considered assembly operations within the definition of “wholly assembled” as they do not join two separate components. That case involved the hemming of the bottom and sleeves of a T-shirt. Therefore, since in all four scenarios in this case, all of the separate components are joined together by sewing in the Marshall Islands, the T-shirts are “wholly assembled” there. Therefore, pursuant to 19 CFR 102.21(c)(2), the country of origin of the T-shirts under all four scenarios is the Marshall Islands. HOLDING: Based upon the information provided and pursuant to 19 CFR 102.21(c)(2), the country of origin of the T-shirts under all four scenarios is the Marshall Islands. 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 19 CFR 177.9(b)(1), which states that each ruling letter is issued on the assumption that all of the information furnished and incorporated 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. A change in the facts previously furnished may affect the determination of country of origin. Thus, if there is any change in the facts provided to Customs, it is recommended that a new ruling request be submitted in accordance with 19 CFR 177.2. A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise is entered. If the documents have been filed without a copy, this ruling should be brought to the attention of the Customs officer handling the transaction. Sincerely, John Durant, Director Commercial Rulings Division