Classification and country of origin determination for woman’s knitted pullovers and pants; 19 CFR 102.21(c)(2) and(4)

NY G87786 March 23, 2001 CLA2-61-RR:NC:N3 359 G87786 CATEGORY: Classification Mr. Arthur W. Bodek Akin, Gump, Strauss, Hauer & Feld, L.L.P. 590 Madison Avenue, 20th Floor New York, NY 10022 RE: Classification and country of origin determination for woman’s knitted pullovers and pants; 19 CFR 102.21(c)(2) and(4) Dear Mr. Bodek: This is in reply to your letter dated February 23, 2001, and to your subsequent letter dated March 12, 2001, and to your facsimile dated March 14, 2001, all of which were submitted on behalf of BCTC Corp., Los Angeles, California, requesting a classification and country of origin determination for two women’s knitted pullovers and pants, which will be sold together after they are imported into the United States. Your sample garments and the sample component panels are returned as requested. FACTS: The subject merchandise consists of two styles of women’s knitted pullovers and pants, which you describe as two-piece fleece sets. Style BB251/BB303, the pullover, consists of a 53% cotton and 47% polyester, women’s knitted pullover, which features long sleeves with hemmed ends, a rib-knit collar and a hemmed bottom with two side vents. There are three appliques applied vertically to the front of the garment. The fabric of the pullover has more than nine stitches per two centimeters, measured in the direction in which the stitches were formed. It is also napped on the inside. Style BB251/BB303, the women’s pants, consists of a 53% cotton and 47% polyester knit fabric, and features an enclosed elasticized waistband and hemmed bottoms. The fabric of the pants is also napped on the inside. Style BB248/BB301, the pullover, consists of a 53% cotton and 47% polyester, women’s knitted pullover, which features a stand up collar with a drawstring and a hemmed bottom with two side vents. There are three appliques applied horizontally to the front of the garment. The front and back sections, as well as the two sleeves, are divided into two panels each. These panels are separated by a contrasting piping. The fabric of the pullover has more than nine stitches per two centimeters, measured in the direction in which the stitches were formed. It is also napped on the inside. Style BB248/BB301, the pants, consists of a 53% cotton and 47% polyester knit fabric, and it features an enclosed elasticized waistband and hemmed bottoms. The fabric of the pants is also napped on the inside. You also submitted two packages of the cut component panels for the pullovers and pants. The packages consists of these items: Package A (style BB251/BB303, pullover)- back panel front panel, appliqued two sleeve panels rib-knit collar Package A (style BB251/BB303, pants)- two back panels two front panels Package B (style BB248/BB301, pullover)- front panel appliqued, top section front panel, bottom section back panel, top section back panel, bottom section top parts of the sleeves bottom parts of sleeves contrasting piping stand up collar Package B (style BB248/BB301, pants)- two back panels two front panels The manufacturing operations for the women’s knitted pullovers and pants are as follows: You propose two production plans for your merchandise. These plans encompass a full production plan for both styles, i.e. all four garments, plus an alternative plan for one pullover only. In both plans you state that the fabric is produced in Taiwan or other Asian country. Production Plan I China all component panels are cut from the fabric front panels of both pullovers are appliqued El Salvador Pants (Styles BB248/BB301 and BB251/BB303) front and back rise are joined outside seams are sewn inseams are sewn closed waistband is folded over and sewn bottom of legs are hemmed Pullover (Style BB251/BB303) front and back panel are joined at shoulders sleeves are sewn closed sleeves are attached to body collar is attached side seams are sewn closed sleeve ends are hemmed bottom of garment is hemmed Pullover (Style BB248/BB301) two components of front panel are sewn together - two components of the back panel are sewn together front and back panel are joined at shoulders two components of the sleeves are sewn together collar is attached sleeves are sewn closed sleeves are attached to body side seams are sewn closed sleeve ends are hemmed - bottom of garment is hemmed Production Plan II (Pullover Style BB248/BB301 only) China component panels cut from fabric top front panel is appliqued top and bottom of front panel are sewn together top and bottom of back panel are sewn together two halves of each sleeve are sewn together El Salvador front and back panels are sewn at shoulders collar is attached front and back panels are sewn at the side seams sleeves are sewn closed sleeves are attached to body sleeve ends are hemmed bottom of garment is hemmed ISSUE: What are the classification and country of origin of the subject merchandise? CLASSIFICATION: The applicable subheading for the women’s knitted pullovers will be 6110.20.2075, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for sweaters, pullovers, sweatshirts, waist coats (vests) and similar articles, knitted or crocheted: of cotton: other, other: other: women’s or girls’. The rate of duty will be 17.8% ad valorem. The applicable subheading for the women’s knitted pants will be 6104.62.2011, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for women’s or girls’ suits, ensembles, . . . : trousers, breeches, knitted or crocheted: trousers, bib and brace overalls, breeches and shorts: of cotton: other: trousers and breeches: women’s: other. The rate of duty will be 15.4% ad valorem. The women’s knitted pullovers fall within textile category designation 339. The women’s knitted pants fall within textile category designation 348. 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 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 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 In the case of the two pullovers and the pants, when manufactured under Production Plan I, those garments undergo a change from two or more component parts to assembled goods, that is, from heading 6117 HTS to heading 6104 HTS, or heading 6110 HTS. The garments are also completely assembled in El Salvador. Accordingly, as the required tariff shift does occur, Section 102.21 (c) (2) is applicable for Styles BB251/ BB303, and BB248/ BB301, the pullovers and the pants, when they are produced under Production Plan I. The country of origin for those garments, produced according to Production Plan I, is El Salvador. With regard to the pullover, Style BB248/ BB301, Section 102.21 (e) states that the goods, if not considered knit to shape and if consisting of two or more component parts, must be assembled in a single country. The pullover, when manufactured under Production Plan II, is assembled in more than one country. Accordingly, it 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": (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 to shape, nor wholly assembled in a single country, 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 Style BB248/BB301, the pullover, when manufactured under Production Plan II, has its essential properties as a garment rendered by certain production processes, and these processes, in turn, are considered the most important assembly processes. Such operations are the sewing of the front and back panels at the shoulders, the attaching of the collar, the sewing of the front and back panels at the side seams, the attaching of the sleeves to the body and the hemming of the sleeves and the bottom of the pullover, all of which occur El Salvador. Accordingly, the country of origin of the women’s pullover, Style BB248/BB301, when manufactured under Production Plan II, is El Salvador HOLDING: The country of origin of the women’s knitted pullovers and pants Styles BB248/BB301 and BB251/BB303 is El Salvador, under Production Plan I. The country of origin for the women’s knitted pullover, Style BB248/ BB301, is El Salvador under Production Plan II. Based upon international textile trade agreements products of El Salvador are subject to the restraints of quota. 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