Classification and country of origin determination for a man's knit sweater; 19 CFR 102.21(c)(2); tariff shift

NY B89337 December 18, 1997 CLA-2-RR:NC:TA:356 B89337 CATEGORY: Classification Mr. Robert L. Follick Follick & Bessich One Exchange Place Suite 915 Jersey City, NJ 07302 RE: Classification and country of origin determination for a man's knit sweater; 19 CFR 102.21(c)(2); tariff shift Dear Mr. Follick: This is in reply to your letter dated September 16, 1997 and supplemental information dated December 11, 1997, on behalf of Lien Yi International Factoring Corp., requesting a classification and country of origin determination for a man's knit sweater which will be imported into the United States. Your request for a classifi- cation and country of origin determination for a man's knit vest cannot be answered without a sample. FACTS: The subject merchandise is a man's sweater constructed from 100 percent cotton, chevron knit fabric which has 7 stitches per 2 centimeters measured in the direction the stitches were formed. The garment has a crew neckline; long, set in sleeves with rib knit cuffs; and a rib knit waistband. You have provided two scenarios and you have stated that, with respect to this request, references to Country A and Country B do not include Israel or a NAFTA party. The manufacturing processes are as follows: Scenario 1: Country A: - The chevron knit fabric will be knit into rolls of fabric. - The rib knit neckband, cuffs, and waistband will be knit into rolls of fabric. - The rolls of fabric will be exported to Country B. Country B: - The chevron knit fabric will be cut to shape to form the front and back panels and the sleeves. - The ribbed neckband, cuffs, and waistband will be cut to length. - The front and back panels, the sleeves, the neckband, the cuffs, and the waistband will be assembled to form the finished garment. Scenario 2: Country A: - The chevron knit fabric will be knit into rolls of fabric. - The rib knit neckband, cuffs, and waistband will be knit into rolls of fabric. - The chevron knit fabric will be cut to shape to form the the front and back panels and the sleeves. - The rib knit neckband, cuffs, and waistband will be cut to length. - The cut pieces will be exported to Country B. Country B: - The cut components, i.e., the front and back panels, the sleeves, the neckband, the cuffs, and the waist-band, will be assembled to form the finished garment. ISSUE: What are the classification and country of origin of the subject merchandise? CLASSIFICATION: The applicable subheading for the sweater will be 6110.20.2010, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for sweaters, ..., knitted or crocheted: of cotton: other: other: sweaters: men's. The rate of duty will be 19.4 percent ad valorem. The 1998 rate of duty will be 19 percent ad valorem. The sweater falls within textile category designation 345. The designated textile and apparel categories may be subdivided into parts. If so, visa and quota requirements applicable to the subject merchandise may be affected. Part categories are the re- sult of international bilateral agreements which are subject to frequent renegotiations and changes. To obtain the most current information available, we suggest that you check, close to the time of shipment, the Status Report on Current Import Quotas (Re- straint Levels), an internal issuance of the U.S. Customs Service which is available for inspection at your local Customs office. COUNTRY OF ORIGIN - 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 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 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. As the sweater is wholly assembled in a single country, that is, Country B, as per the terms of the tariff shift requirement, country of origin is conferred in Country B in both Scenario 1 and Scenario 2. HOLDING: The country of origin of the sweater is Country B in Scenario 1 and Scenario 2. Based upon international textile trade agreements, products of Country B may be subject to quota and visa requirements. 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 sections 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 CAR 177). Should it be subsequently determined that the information furnished is not complete and does not comply with 19 CAR 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 CAR 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 212-466-5877. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division