Country of origin determination for men's and boys' woven athletic trousers; 19 CFR 102.21(c)(4); most important assembly or manufacturing process

HQ 960812 November 5, 1997 CLA-2 RR:TC:TE 960812 jb CATEGORY: Classification John B. Pellegrini, Esq. Ross & Hardies Park Avenue Tower 65 East 55th Street New York, NY 10022-3219 RE: Country of origin determination for men's and boys' woven athletic trousers; 19 CFR 102.21(c)(4); most important assembly or manufacturing process Dear Mr. Pellegrini: This is in reply to your letter dated June 30, 1997, on behalf of your client, Adidas America, Inc., requesting a country of origin determination for certain men's and boys' woven athletic trousers which will be imported into the United States. FACTS: The subject merchandise, consists of men's and boys' athletic trousers made of woven man-made fiber fabric. The manufacturing operations are as follows: People's Republic of China all cutting embroidering on one or more panels sewing of three stripe decoration on back panel sewing leg zipper to one of the leg panels sewing of pockets on front panels Hong Kong sewing outseams and inseams sewing front and back seams complete sewing of the leg zipper closing of the waistband and inserting elastic sewing of elastic on leg panels Peoples's Republic of China attaching hangtag attach garment UPC to hangtag packing into polybags packing bags and sealing cartons 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Section 334 of that Act (codified at 19 U.S.C. 3592) provides new rules of origin for textiles and apparel entered, or withdrawn from warehouse, for consumption, on and after July 1, 1996.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": 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. The subject pants are classified in heading 6203, Harmonized Tariff Schedule of the United States (HTSUS). Section 102.21(b)(6) defines wholly assembled as: The term "wholly assembled" when used with reference to a good means 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. As the assembly for the subject merchandise occurs in both the People's Republic of China and Hong Kong, the pants are not wholly assembled in a single country, territory, or insular possession. Accordingly, Section 102.21(c)(2) is inapplicable. Paragraph (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 nor wholly assembled is 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 pants the most important assembly occurs at the time of the sewing of the outseams and inseams, sewing of the front and back seams, sewing of the leg zipper, closing of the waistband and insertion of the elastic, and sewing of the elastic on the leg panels. Accordingly, country of origin is conferred in the country in which those operations occur, that is, Hong Kong. HOLDING: The country of origin of the subject men's and boys' pants, is Hong Kong. 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. 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. Sincerely, John Durant, Director Commercial Rulings Division