Classification and country of origin determination for a woman’s hooded, knitted sweat jacket; 19 CFR 102.21(c)(4)

NY G87102 March 12, 2001 CLA2-RR:NC:61:TA 359 G87102 CATEGORY: Classification Mr. Andy Teo Asst. Group Logistics Manager Ghim Li Fashion Co. Pte., Ltd. No. 41 Changi South Avenue 2 Singapore 486153 RE: Classification and country of origin determination for a woman’s hooded, knitted sweat jacket; 19 CFR 102.21(c)(4) Dear Mr. Teo: This is in reply to your letter dated February 7, 2001, requesting a classification and country of origin determination for a woman’s hooded, knitted sweat jacket which will be imported into the United States. The sample which you submitted is returned under separate cover. Although not stated in your submission, we are assuming that the countries which you designated as “Country A” and “Country B” do not include either Israel or a signator country to the North American Free Trade Agreement (NAFTA). FACTS: The subject merchandise consists of a woman’s knitted sweat jacket, Style 3A720, which has a fiber content of 80% cotton, 20% polyester. The jacket features a full-front, zippered opening, an attached hood with a functional drawstring, long sleeves with rib knit cuffs and a rib knit waistband. There are also two slanted-opening patch pockets in the front at waist level, and an appliqued and embroidered logo across the front chest. The inside of the jacket is napped. It extends from the wearer’s neck and shoulder to below her waist. There are two production plans for your merchandise. Production Plan I Country A make and mark patterns cut fabric into component panels embroider front panels Country B make hood attach front pockets to front panels join front and back panels at the shoulder seams attach hood insert label inside rear neck Country A sew side seams attach sleeves attach rib knit waistband attach rib knit cuffs to sleeves make zipper* cut threads, inspect and pack shipment Production Plan II Country A make and mark patterns cut fabric into component panels embroider front panels Country B make hood attach front pockets to front panels join front and back panels at the shoulder seams attach hood insert label inside rear neck attach rib knit waistband make zipper* Country A sew side seams - attach sleeves - cut threads, inspect and pack shipment *Please note, for the purpose of this ruling, when you state that you make the zipper in a particular country, under each production plan, we assume that this process includes attaching the zipper to the sweat jacket as well. ISSUE: What are the classification and country of origin of the subject merchandise? CLASSIFICATION: The applicable subheading for the woman’s knitted sweat jacket, Style 3A720, will be 6102.20.0010, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for women’s overcoats . . . windbreakers and similar articles, knitted or crocheted: other than those of heading 6104; of cotton, women’s. The rate of duty will be 16.2% ad valorem. The woman’s knitted sweat jacket falls within textile category designation 335. The designated textile and apparel categories and their quota and visa status are the result of international agreements that are subject to frequent renegotiations and changes. To obtain the most current information, we suggest that you check, close to the time of shipment, the U.S. Customs Service Textile Status Report, an internal issuance of the U.S. Customs Service, which is available at the Customs Web Site at WWW.CUSTOMS.GOV. In addition, 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 and should also be verified at the time of shipment. 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 6102.20.0010 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 Section 102.21(e) states that the good must be wholly assembled in a single country; however, for both of your production plans, the good is assembled in more than one country. Accordingly the sweat jacket does not meet the tariff shift rule and therefore, Section 102.21(c)(2) is inapplicable. Section 102.21(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": (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 not wholly assembled in 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 merchandise, the following operations in Production Plan I, create the essential garment and therefore, they constitute the most important assembly processes. These operations are the sewing of the side seams, the attaching of the sleeves, the attaching of the rib knit waistband, the attaching of the rib knit cuffs, and the making of the zipper, all of which occur under Production Plan I in Country A. Accordingly, the country of origin of the woman’s knitted sweat jacket is Country A, for Production Plan I. In the case of the subject merchandise, the following operations in Production Plan II, create the essential garment and therefore, they constitute the most important assembly processes. These operations are the making of the hood, the attaching of the two front pockets onto the front panels, the joining of the front and back panels to the shoulder seams, the attaching of the hood, the attaching of the rib knit waistband and the making of the zipper, all of which occur under Production Plan II in Country B. Accordingly, the country of origin of the woman’s knitted pullover is Country B, for Production Plan II. HOLDING: The country of origin of the woman’s knitted sweat jacket, Style No. 3A720 is Country A, for Production Plan I, and Country B under Production Plan II. Based upon international textile trade agreements products of Countries A and B maybe subject to quota and the requirement of a visa. 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. This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177). 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. 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 Mike Crowley at 212-637-7077. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division