Modification of NY L89596; country of origin of knit-to-shape brassieres.

HQ H039056 March 31, 2014 CLA-2 OT:RR:CTF:TCM H039056 KSH CATEGORY: Classification TARIFF NO.: 6212.10.9020 Eleanor Kelly-Kobayashi, Esq. Rode & Qualey 55 West 39th Street New York, NY 10018 RE: Modification of NY L89596; country of origin of knit-to-shape brassieres. Dear Ms. Kelly-Kobayashi: This letter is to inform you that the U.S. Customs and Border Protection (CBP) has reconsidered New York Ruling Letter (NY) L89596, issued to you on February 8, 2006, on behalf of your client AC Carpi Apparel Manufacturing Ltd., concerning, in relevant part, the country of origin of knit-to-shape brassieres. In NY L89596, CBP determined that the country of origin of the knit-to-shape brassieres was China. We have reviewed that ruling and found it to be in error as it pertains to the country of origin of the knit-to-shape brassieres. Therefore, this ruling modifies NY L89596. Pursuant to section 625(c)(1), Tariff Act of 1930 (19 U.S.C. §1625(c)(1)), as amended by section 623 of Title VI, notice of the proposed modification was published on June 9, 2010, in the Customs Bulletin, Volume 44, No. 24. CBP received no comments in response to this notice. FACTS: The merchandise at issue is described in L89596 as follows: You have submitted samples of two styles of sports bras, both made of 88% nylon and 12% spandex knitted fabric, with scooped front necklines, elasticized arm and neck openings and elasticized bottom bands measuring approximately one inch. Style #500-6088 features an adjustable hook and eye closure at the rear of the garment and style #500-6008 features a racer back. The manufacturing operations for the brassieres are as follows: Style #500-6088 Hong Kong Tubular knit fabric is made with a self-start bottom and lines of demarcation Garment is dyed China Tubular knit fabric is cut along the lines of demarcation, forming neck openings and one inch wide shoulder straps Straps are sewn closed Hook and eye closure tab is sewn to back of garment Elasticized trim is sewn to top edge of garment and along edges of shoulder straps Style #500-6008 Hong Kong Tubular knit fabric is made with a self-start bottom and lines of demarcation Garment is dyed China Tubular knit fabric is cut along the lines of demarcation, forming the neck openings and one-inch wide shoulder straps Shoulder straps are sewn closed Elasticized trim is sewn to top edge of garment and shoulder straps ISSUE: What is the country of origin of the knit-to-shape brassieres? LAW AND ANALYSIS: Section 334 of the Uruguay Round Agreements Act (URAA) (codified at 19 U.S.C. 3592), enacted on December 8, 1994, provides rules of origin for textiles and apparel entered, or withdrawn from warehouse for consumption, on and after July 1, 1996. Section 102.21, CBP Regulations (19 C.F.R. 102.21), published September 5, 1995, in the Federal Register, implements Section 334 (60 FR 46188). Section 334 of the URAA was amended by section 405 of the Trade and Development Act of 2000, enacted on May 18, 2000. Accordingly, section 102.21, CBP Regulations was amended (68 Fed. Reg. 8711). Thus, the country of origin of a textile or apparel product shall be determined by the sequential application of the general rules set forth in paragraphs (c)(1) through (5) of Section 102.21. Paragraph (c)(1) states "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:" As noted in L89596, the knit-to-shape brassieres are classified in subheading 6212.10.9020, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Brassieres, girdles, corsets, braces, suspenders, garters and similar articles and parts thereof, whether or not knitted or crocheted: other: other…of man-made fabrics.” The relevant tariff change rules set forth in 19 C.F.R. §102.21(e) are as follows: HTSUS Tariff shift and/or other requirements 6210-6212 (1) If the good consists of two or more component parts, a change to an assembled good of heading 6210 through 6212 from unassembled components, provided that the change is the result of the good being wholly assembled in a single country, territory, or insular possession. (2) If the good does not consist of two or more component parts, a change to heading 6210 through 6212 from any heading outside that group, except from heading 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408, 5512 through 5516, 5602 through 5603, 5801 through 5806, 5809 through 5811, 5903, 5906 through 5907, 6001 through 6006, and 6217, and subheading 6307.90, and from an assembled women's or girls' garment, made up of fabrics of heading 5602, 5603, 5903, 5906, or 5907, of heading 9619 or a girls', boys', men's, or women's garment, other than knitted or crocheted garments and other than a women's or girls' singlet or other undershirt, brief, panty, negligee, bathrobe, dressing gown, or a similar article from any other heading, provided that the change is the change is the result of a fabric-making process. 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, appliqués, 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 brassieres, having only one component and several minor attachments, are not “wholly assembled,” nor does their production involve a “fabric-making process.” Therefore, we are unable to invoke a country of origin determination under 102.21(c)(2). Section 102.21(c)(3) states, 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. Section 102.21(b)(3) defines knit to shape as: The term “knit to shape” applies to any good of which 50 percent or more of the exterior surface area is formed by major parts that have been knitted or crocheted directly to the shape used in the good, with no consideration being given to patch pockets, appliqués, or the like. Minor cutting, trimming, or sewing of those major parts will not affect the determination of whether a good is “knit to shape.” The term “major parts” means “integral components of a good but does not include collars, cuffs, waistbands, plackets, pockets, linings, paddings, trim, accessories, or similar parts.” See Section 102.21(b)(4), CBP Regulations. In this case, the subject tubular knit fabric components have a self-start bottom edge and clear and continuous lines of demarcation that outlines the brassieres. Thus the subject tubular fabric components are considered “knit to shape.” The assembly of the hook and eye closure and elasticized trim will not affect the determination of whether the brassieres are knit to shape as they each have only one integral component (i.e., the knit to shape tubular knit portions.) In this regard, the brassieres are considered to be “knit to shape” under 19 C.F.R. 102.21(c)(3). See HQ 968186, dated July 7, 2006. In this case, the brassieres were knit-to-shape in Hong Kong. By application of section 102.21(c)(3)(i), the country of origin is Hong Kong, the single territory where the brassieres were knit-to-shape. HOLDING: Pursuant to section 19 C.F.R. §102.21(c)(3)(i), the country of origin of the brassieres is Hong Kong. EFFECT ON OTHER RULINGS: NY L89596, dated February 8, 2006, is hereby modified. In accordance with 19 U.S.C. §1625(c), this ruling will become effective 60 days after its publication in the Customs Bulletin. Sincerely, Myles B. Harmon, Director Commercial and Trade Facilitation Division