Classification and status under the North American Free Trade Agreement (NAFTA) of men’s knit garments produced in the United States, Mexico and Canada; Article 509; Country of origin determination; 19 CFR 102.21(c)(2); tariff shift; Marking; 19 U.S.C. 1304.

NY G88020 May 7, 2001 CLA2-RR:NC:TA:N3:356 G88020 CATEGORY: Classification Mr. William Baldwin Norman G. Jensen, Inc. P.O. Box 3789 Blaine, WA 98231-3789 RE: Classification and status under the North American Free Trade Agreement (NAFTA) of men’s knit garments produced in the United States, Mexico and Canada; Article 509; Country of origin determination; 19 CFR 102.21(c)(2); tariff shift; Marking; 19 U.S.C. 1304. Dear Mr. Baldwin: This is in reply to your letter dated March 7, 2001, on behalf of Aero Garment Ltd., in which you requested the classification, country of origin, originating status under the North American Free Trade Agreement (NAFTA), and marking requirements for men’s knit garments which will be produced in the NAFTA territories and imported into the United States. You have provided a sample of the garment after assembly in Mexico but prior to screen-printing or embroidering in Canada. As requested, your sample will be returned. FACTS: The submitted sample, Style 70000, is a men’s pullover garment constructed from 100 percent cotton, finely knit jersey fabric. The garment has a rib knit, crew neckline; short, hemmed sleeves; and a hemmed bottom. The imported garments will have large screen-printed or embroidered designs on the front and/or back panels. The manufacturing operations for the garments are as follows: United States: - Fibers of U.S. origin are spun into yarn The yarn is knit into tubular fabric for the body of the garment and ribbed fabric for the neckband The fabric is cut into component parts (tubular knit body panel, sleeves, neckband) Mexico: - The component parts are completely assembled into a finished garment (the shoulders are sewn; the neckband is attached; the sleeves are sewn closed and attached to the body of the garment; the sleeves and the body panel are hemmed) Canada: - The garments are screen-printed or embroidered - The garments are packed for export to the United States ISSUE: What are the classification, country of origin, NAFTA status, and marking requirements of the subject merchandise? CLASSIFICATION: For purposes of tariff classification, we will designate the garments as Style 70000 (screen-printed) and Style 70000 (embroidered). The applicable subheading for Style 70000 (screen-printed) will be 6109.10.0012, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for T-shirts, singlets, tank tops and similar garments, knitted or crocheted: of cotton: men’s or boys’: other: other T-shirts: men’s. The general rate of duty will be 17.8 percent ad valorem. The applicable subheading for Style 70000 (embroidered) will be 6110.20.2065, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for sweaters, pullovers, sweatshirts, waistcoats (vests) and similar articles, knitted or crocheted: of cotton: other: other: other: men’s or boys’. The general rate of duty will be 17.8 percent ad valorem. The garments, being wholly obtained or produced entirely in the territories of the United States, Mexico and Canada will meet the requirements of HTSUSA general Note 12(b) (i). Style 70000 (screen-printed) will be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations and agreements. Style 70000 (embroidered) will be entitled to a free rate of duty under the NAFTA and pursuant to subheading 9906.61.14, HTSUSA, upon compliance with all applicable laws, regulations and agreements. Because the garments are “originating” under the NAFTA, these garments are not subject to visa requirements or quota restraints. 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. Paragraph (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. The submitted garment is not knit to shape and consists of two or more parts. As the embroidery is considered a minor attachment and/or minor embellishment, and as all of the assembly operations performed on the garment occur in Mexico, the garment is considered “wholly assembled” in a single country, that is, Mexico. As per the terms of the tariff shift requirement, country of origin is conferred in Mexico. MARKING: The garment has a woven fabric label sewn to the center rear neckline that shows the country of origin marking in plain, block, upper case letters that are black in color on a white background. The letters are one-sixteenth of an inch high. The label states: “U.S.A. COMPONENTS ASSEMBLED IN MEXICO” The marking statute, Section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless excepted, every article of foreign origin (or its container) imported into the U.S. shall be marked in a conspicuous place as legibly, indelibly and permanently as the nature of the article (or its container) shall permit in such a manner as to indicate to the ultimate purchaser in the U.S., the English name of the country of origin of the article. Part 134, Customs Regulations (19 CFR Part 134) implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. The country of origin marking requirements for a “good of a NAFTA country” are also determined in accordance the Annex 311 of the North American Free Trade Agreement (“NAFTA”), as implemented by section 207 of the North American Free Trade Agreement Implementation Act (Pub. L. 103-182, 107 Stat 2057) (December 8, 1993) and the appropriate Customs Regulations. The Marking Rules used for determining whether the good is a good of a NAFTA country are contained in Part 102, Customs Regulations. Section 102.21 of the regulations sets forth the required hierarchy for determining country of origin for marking purposes for textile products. Section 134.45 (a)(2) of the regulations, provides that a “good of a NAFTA country” may be marked with the name of the country of origin in English, French or Spanish. Section 134.1 (g) of the regulations, defines a “good of a NAFTA country” as an article for which the country of origin is Canada, Mexico or the United States as determined under the NAFTA Marking Rules. 19 CFR 134.43(e) provides that “Where an article is produced as a result of an assembly operation and the country of origin of such article is determined under this chapter to be the country in which the article was finally assembled, such article may be marked, as appropriate, in a manner such as the following: Assembled in (country of final assembly); Assembled in (country of final assembly) from components of (name of country or countries of origin of all components); or Made in, or product of, (country of final assembly). The marking on the submitted garment, “USA COMPONENTS / ASSEMBLED IN MEXICO”, satisfies the marking requirements of 19 U.S.C 1304 and 19 Part 134 and is an acceptable country of origin marking for the imported garments. HOLDING: The applicable subheading for Style 70000 (screen-printed) will be 6109.10.0012, (HTSUSA), which provides for T-shirts, singlets, tank tops and similar garments, knitted or crocheted: of cotton: men’s or boys’: other: other T-shirts: men’s. The general rate of duty will be 17.8 percent ad valorem. The applicable subheading for Style 70000 (embroidered) will be 6110.20.2065, (HTSUSA), which provides for sweaters, pullovers, sweatshirts, waistcoats (vests) and similar articles, knitted or crocheted: of cotton: other: other: other: men’s or boys’. The general rate of duty will be 17.8 percent ad valorem. The garments, being wholly obtained or produced entirely in the territories of the United States, Mexico and Canada will meet the requirements of HTSUSA general Note 12 (b) (i). Style 70000 (screen-printed) will be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations and agreements. Style 70000 (embroidered) will be entitled to a free rate of duty under the NAFTA and pursuant to subheading 9906.61.14, HTSUSA, upon compliance with all applicable laws, regulations and agreements. The country of origin of Style 70000 (screen-printed) and Style 70000 (embroidered) is Mexico. Because the garments are “originating” under the NAFTA, these garments are not subject to visa requirements or quota restraints. The proposed marking of the garments, “USA COMPONENTS / ASSEMBLED IN MEXICO” satisfies the marking requirements of 19 U.S.C. 1304 and 19 CFR Part 134 and is an acceptable country of origin marking for the imported garments. This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 C.F.R. 181). 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 212-637-7081. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division