Classification and country of origin of 100% cotton sweatshirts; heading 6110; Textile Category Guidelines, CIE 13/88; fabric knit in China, India or Pakistan; fabric marked, cut and assembled by sewing in Mexico; 19 CFR 12.130; substantial transformation; HRLs 089767, 088069 and 732502

HQ 953843 May 18, 1993 CLA-2 CO:R:C:T 953843 NLP CATEGORY: Classification TARIFF NO.: 6110.20.2045 Mr. Kirit D. Patel, President Venus Textiles, Inc. 18460 Gothard Street P.O. Box 1700 Huntington Beach, CA 92647-1700 RE: Classification and country of origin of 100% cotton sweatshirts; heading 6110; Textile Category Guidelines, CIE 13/88; fabric knit in China, India or Pakistan; fabric marked, cut and assembled by sewing in Mexico; 19 CFR 12.130; substantial transformation; HRLs 089767, 088069 and 732502 Dear Mr. Patel: This is in response to your letter dated February 16, 1993, to our New York office, in which you requested a tariff classification for cotton sweatshirts under the Harmonized Tariff Schedule of the United States (HTSUS). In addition, you requested a country of origin determination for the sweatshirts. A sample of the finished sweatshirt was submitted for our examination. FACTS: The garment at issue, style no. 1001, is a 100% cotton fleece knit pullover sweatshirt with long sleeves, rib knit sleeve cuffs, a rib knit bottom and a crew neckline. The inner surface of the sweatshirt is napped and the outer surface has more than nine stitches per two centimeters measured in the horizontal direction. You state that the sweatshirt is considered unisex and that it comes in only two sizes: big and bigger. The fabric for the sweatshirt, as well as for the ribs, will be knit in either China, India or Pakistan from 100% cotton yarns. The fabric will be sent to Mexico, in either flat folded or roll form, where it will be marked, cut to different sizes and assembled by sewing into the sweatshirts. In addition, the sweatshirts will then be inspected, trimmed of excess threads, folded manually, packaged by the dozen and packed for shipping. ISSUES: What is the tariff classification of the 100% cotton fiber sweatshirt? What is the country of origin of a sweatshirt composed of fabric knit in either China, India or Pakistan and marked, cut and assembled by sewing in Mexico? ISSUE #1 The classification of goods under the HTSUS is governed by the General Rules of Interpretation (GRI's), taken in order. GRI 1 provides that classification shall be determined according to the terms of the headings and any relative section or chapter notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRI's may be applied, taken in order. Heading 6110, HTSUS, provides for "[s]weaters, pullovers, sweatshirts, waistcoats (vest) and similar articles, knitted or crocheted." The Textile Category Guidelines, CIE 13/88, include a category description for sweatshirts. The Guidelines state, in pertinent part, that: Sweatshirts are pullover style garments with long or short length sleeves, snug fitting waist (elastic, drawstring, etc.) and cuffs. Pockets are allowed. A wide variety of neck treatments is permissible from crew, boat, or V-neck to hood and turned-down collar. The body of the garment, as distinct from the cuffs, waistband, neck and/or collar must be of the familiar close-knit, unpatterned material, significantly napped on the inside. The subject garment qualifies as a sweatshirt according to the above Guidelines and is known commercially as a sweatshirt. Therefore, it is classified in heading 6110, HTSUS. In addition, you state that the sweatshirt is "unisex". According to the Guidelines, articles which cannot be identified as either men's or boys' garments or as women's or girls' garments are commonly referred to as "unisex" garments and are classifiable under the provision for women's and girls' apparel. As this garment is considered to be a unisex sweatshirt it is classifiable in subheading 6110.20.2045, HTSUS, which provides for "[s]weaters, pullovers, sweatshirts, waistcoats (vest) and similar articles, knitted or crocheted: [o]f cotton: [o]ther: [o]ther: [s]weatshirts: [w]omen's or girls." ISSUE #2 Country of origin determinations for textile products are subject to Section 12.130 of the Customs Regulations (19 CFR 12.130). Section 12.130(b) provides that a textile product that is processed in more than one country or territory shall be a product of that country or territory where it last underwent a substantial transformation. A textile or textile product will be considered to have undergone a substantial transformation if it has been transformed by means of substantial manufacturing or processing operations into a new and different article of commerce. Section 12.130(d) of the Customs Regulations sets forth criteria for determining whether a substantial transformation of a textile product has taken place. This regulation states that these criteria are not exhaustive; one or any combination of criteria may be determinative, and additional factors may be considered. Section 12.130(d)(1) of the Customs Regulations states that a new and different article of commerce will usually result from a manufacturing or processing operation if there is a change in: (i) Commercial designation or identity. (ii) Fundamental character or (iii) Commercial use. Section 12.130(d)(2) of the Customs Regulations states that in determining whether merchandise has been subjected to substantial manufacturing or processing operations, the following will be considered: (i) The physical change in the material or article as a result of the manufacturing or processing operations in each foreign territory or country, or insular possession of the U.S. (ii) The time involved in the manufacturing or processing operations in each foreign territory or country, or insular possession of the U.S. (iii) The complexity of the manufacturing or processing operations in each foreign territory or country, or insular possession of the U.S. (iv) The level or degree of skill and/or technology required in the manufacturing or processing operations in each foreign territory or country, or insular possession of the U.S. (v) The value added to the article or material in each foreign territory or country, or insular possession of the U.S., compared to its value when imported onto the U.S. Section 12.130(e) of the Customs Regulations sets forth criteria which aid us in determining whether an article has been subjected to certain manufacturing or processing operations which serve to substantially transform an article into a new and different article of commerce. Specifically, Section 12.130(e)(1)(iii)(iv) and (v) are relevant in the instant case. This Section provides that: An article or material usually will be a product of a particular foreign territory or country, or insular possession of the U.S., when it has undergone prior to importation into the U.S. in that foreign territory or country, or insular possession any of the following: * * * * * (iii) Weaving, knitting or otherwise forming fabric; (iv) Cutting of fabric into parts and the assembly of those parts into the completed articles; or (v) Substantial assembly by sewing and/or tailoring of all cut pieces of apparel articles which have been cut from fabric in another foreign territory or country, or insular possession, into a completed garment (e.g. the complete assembly and tailoring of all cut pieces of suit-type jackets, suits, and shirts). In HRL 089767, dated October 21, 1991, Customs dealt with a country of origin determination of a waist-length sweater. The fabric for the sweater was knit in Taiwan and sent to either Hong Kong or the Dominican Republic where it was to be cut into sweater components using paper patterns and then assembled into complete garments. The sample for the sweater measured approximately 175 inches by 60 inches. It was divided into seven repeats, each about 25 inches wide with a rib-knit band running along one 60 inch edge of each section, The samples did not contain any discernible cutting lines or other means of identifying the individual sweater components to be cut from each 25 by 60 inch section. Based on 19 CFR 12.130 (e)(1)(iv), we held that the sweater had been substantially transformed in either Hong Kong or the Dominican Republic and it was a product of either of those countries. We noted, however, that this result would not have been valid if the fabric leaving Taiwan had contained cutting lines or other markings which would have established the identity of the components to be cut from the fabric. Customs has consistently ruled that fabric with cutting lines or other markings establishing the identity of apparel parts will be treated as knit-to-shape components. An article usually will not be considered to be a product of a second country where otherwise completed knit-to-shape component parts from one country have been merely assembled in the second country. See, HRL 088069, dated January 25, 1990. Garments made from that fabric are considered substantially transformed in the country where the fabric is knit. In the instant case, you have stated that the fabric is both marked and cut in Mexico. Therefore, based on 19 CFR 12.130(e)(1)(iv) and HRL 089767, this fabric has been substantially transformed in Mexico and it is established as a product of this country. However, we note that this result will not be valid if the fabric leaving either China, India or Pakistan contains cutting lines or other markings which establish the identity of the components to be cut from that fabric. Moreover, we note that Customs has also held that the mere assembly of goods entailing simple combining operations, trimming or joining together by sewing is not enough to substantially transform the components of an article into a new and different article of commerce. For example, in HRL 732502, dated November 28, 1989, Customs held that sweatshirts assembled in Jamaica from fabric that was knit and cut-to-shape in an Asian country were not considered substantially transformed in Jamaica. Thus, the assembly of knit-to-shape garment parts into the finished garments does not by itself constitute a substantial transformation for the purposes of 19 CFR 12.130. HOLDING: The subject sweatshirt, style 1001, is classified in subheading 6110.20.2045, HTSUS, which provides for "[s]weaters, pullovers, sweatshirts, waistcoats (vest) and similar articles, knitted or crocheted: [o]f cotton: [o]ther: [o]ther: [s]weatshirts: [w]omen's pr girls." The rate of duty for garments classified in this subheading is 20.7% ad valorem and the applicable textile category code is 339. The country of origin for the sweatshirt is Mexico. 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 177.9(b)(1), Customs Regulations (19 CFR 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all the information furnished in connection with the ruling request and incorporated in the ruling letter, either directly, by reference, or by implication, is accurate and complete in every material respect. Should it subsequently be 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, it is recommended that a new ruling request be submitted in accordance with section 177.2, Customs Regulations (19 CFR 177.2). The designated textile and apparel categories may be subdivided into parts. If so, the visa and quota requirements applicable to the subject merchandise may be affected. Since part categories are the result of international bilateral agreements which are subject to frequent renegotiations and changes, to obtain the most current information available we suggest the importer check, close to the time of shipment, the Status Report on current Import Quotas (Restraint Levels), an internal issuance of the U.S. Customs Service which is updated weekly and is available for inspection at your local Customs office. Due to the changeable nature of the statistical annotation (the ninth and tenth digits of the classification) and the restraint (quota/visa) categories, you should contact your local Customs office prior to importation of this merchandise to determine the current status of any import restraints or requirements. Sincerely, John Durant, Director Commercial Rulings Division