Country of origin determination for men's knitwear; 19 CFR Section 102.21(c)(2); knit to shape

HQ 960581 March 9, 1998 CLA-2 RR:TC:TE 960581 ASM CATEGORY: Classification Harold I. Loring, Esq. Grunfeld, Desiderio, Lebowitz & Silverman LLP 245 Park Avenue, 33rd Floor New York, NY 10167-3397 RE: Country of origin determination for men's knitwear; 19 CFR Section 102.21(c)(2); knit to shape Dear Mr. Loring: This is in reply to your request for a country of origin determination on behalf of your client, Tommy Hilfiger U.S.A., Inc., regarding certain men's knitwear which will be imported into the United States. Samples of the finished garments and component pieces have been submitted to this office for examination. FACTS: The subject merchandise is a man's knit sweater constructed of 100 percent cotton, jersey knit fabric measuring 6 stitches per 2 centimeters counted in the horizontal direction. The garment has a rib knit turtleneck; long sleeves with rib knit cuffs and a rib knit bottom. The sweater is classifiable in subheading 6110.20.2010, HTSUSA, dutiable at 19 percent ad valorem, quota category 345. The upper portion of the front panel has been knit to the contour of the curved front neckline. The back panel has a small curve knitted into the neckline to accommodate the contour of the rear neckline. The rib knit turtleneck will be linked to the neckline following these contours. Full fashion marks appear in the armhole area of the front and back panels. The rib knit waistband is knit as an integral part of each panel. The sleeves are knit to shape with full fashion marks and the rib knit cuffs are knit as an integral part of each panel. The armholes do not appear to require any further cutting or shaping prior to the attachment of the sleeve panels because the armhole is shaped by full fashion marks on both the sleeves and the front and back panels. According to your submission, the sweater will be manufactured as follows: Scenario #1 Country A (Bangladesh): - front panel is knit to shape - back panel is knit to shape - two long sleeve panels are knit to shape - neck band is knit Country B (China): - components are linked into a finished sweater Scenario #2 Country A (Bangladesh): - front panel is knit to shape - back panel is knit to shape - two long sleeve panels are knit to shape Country B (China): - neck band is knit - components are linked into a finished sweater ISSUE: What is the country of origin of the subject merchandise? 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 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."  Paragraph (e) 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:" 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. 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(b) states: (3) Knit to shape. The term knit to shape applies to any good of which 50 percent or more of the exterior surface is formed by major parts that have been knitted or crocheted directly to the shape used in the good, with no consideration being given to patch pockets, appliques, or the like. Minor cutting, trimming, or sewing of those major parts will not affect the determination of whether a good is "knit to shape." (4) Major parts. The term major parts means integral components of a good but does not include collars, cuffs, waistbands, plackets, pockets, linings, paddings, trim, accessories, or similar parts. The subject merchandise is classifiable as men's knit pullovers in heading 6110, HTSUSA. Section 102.21(e) requires a tariff shift to headings 6101 through 6117 from any heading outside the specified headings. In this case, a tariff shift to heading 6110, HTSUSA, occurs in "Country B," but from components that are classifiable in heading 6117, HTSUSA. As heading 6117, HTSUSA, is excepted by Section 102.21(c)(2), the tariff shift is not applicable. Section 102.21(c)(3) applies where the country of origin of a textile or apparel product cannot be determined pursuant to paragraph (c)(l) or (c)(2) and where the merchandise consists of either a good that was knit to shape or (with an exception for goods of certain specifically enumerated headings) was wholly assembled in a single country, territory, or insular possession. Section 102.21(c)(3)(i) provides the following: 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; ...  In Scenario #1, all the components are knit to shape in "Country A" and only the linking of components occurs in "Country' B." Scenario #1 falls squarely within Section 102.21(c)(3)(i) because all the components are knit to shape in "Country A." Therefore, "Country A" is the single country in which the good was knit. In Scenario #2, the front, back, and sleeve panels are knit to shape in "Country A" and only the neck band and linking occur in "Country B." It is our determination that a neckband of this type is not a major part because Section 102.2 l(b)(4) specifically states that a major part does not include collars. Thus, pursuant to section 102.21 (c)(3), the country of origin for the sweater in both Scenarios #1 and #2 is the single country in which the good was knit to shape, i.e. , "Country A." HOLDING: The country of origin of the sweater in Scenario #1 is "Country A." The country of origin of the sweater in Scenario #2 is "Country A." 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 C.F.R. 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished 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 C.F.R. 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 C.F.R. 177.2. Sincerely, John Durante, Director Commercial Rulings Division