Classification and status under the North American Free Trade Agreement (NAFTA) of men’s knit garments produced in the United States and Canada; Article 509; Country of origin determination; 19 CFR 102.21(c)(2); tariff shift; Marking; 19 U.S.C. 1304; C.R. 12.130 (c); T.D. 90-17; T.D. 00-44

NY H81614 May 7, 2001 CLA2-RR:NC:TA:N3:356 H81614 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 and Canada; Article 509; Country of origin determination; 19 CFR 102.21(c)(2); tariff shift; Marking; 19 U.S.C. 1304; C.R. 12.130 (c); T.D. 90-17; T.D. 00-44 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 United States and Canada and imported into the United States. You have provided a sample of the garment after assembly in the United States but prior to screen-printing or embroidering in Canada. As requested, your sample will be returned. FACTS: The submitted sample, Style 10000, 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) - 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 10000 (screen-printed) and Style 10000 (embroidered). The applicable subheading for Style 10000 (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 10000 (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 and Canada will meet the requirements of HTSUSA general Note 12(b) (i). Style 10000 (screen-printed) and Style 10000 (embroidered) will be entitled to a free rate of duty under the NAFTA 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 the United States, the garment is considered “wholly assembled” in a single country, that is, the United States. As per the terms of the tariff shift requirement, country of origin is conferred in the United States. However, there is an exception for duty and quota purposes for products from the United States that are sent abroad for processing. Section 12.130(c), Customs Regulations, provides that any product of the United States that is returned after having been advanced in value or improved in condition abroad, or assembled abroad, shall be considered a foreign article. T.D. 90-17 states that Section 12.130 should be applied to determine the country of origin for duty and quota purposes. Therefore, Style 10000 (screen-printed) and Style 10000 (embroidered) are considered to be a product of Canada for duty and quota purposes. MARKING: 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. In T.D. 00-44, which was published in the Federal Register, Vol. 35, No. 133, pages 42634-7, July 11, 2000 (effective October 10, 2000), Customs stated that C.R. 12.130 no longer controls for the purpose of determining the country of origin marking of textiles and textile products. Instead, Section 102.21, C.R., will determine the country of origin marking of a United States produced textile or textile product that is further processed abroad. Therefore, in accordance with Section 102.21(c) (2) and T.D. 00-44, the country of origin for the purpose of the neck label marking is the United States. You also inquired as to the marking requirements for these garments. The marking of products of U.S. origin must be in accordance with the Textile Fiber Products Identification Act (15 U.S.C. 70 through 70k) and the rules promulgated thereunder by the Federal Trade Commission. Therefore, we suggest that you contact the Federal Trade Commission, Division of Enforcement, 6th and Pennsylvania Avenue, N.W., Washington, D.C. 20508, to determine whether the proposed marking satisfies those requirements. HOLDING: The applicable subheading for Style 10000 (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 10000 (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. In accordance with T.D. 90-17 and Section 12.130 (c), C.R., the country of origin of the two styles of men’s knit garments for quota and duty purposes will be Canada. The garments, being wholly obtained or produced entirely in the territories of the United States and Canada, will meet the requirements of HTSUSA general Note 12(b) (i). Style 10000 (screen-printed) and Style 10000 (embroidered) will be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations and agreements. Because the garments are “originating” under the NAFTA, they are not subject to visa requirements or quota restraints. In accordance with Section 102.21(c) (2) and T.D. 00-44, the country of origin of Style 10000 (screen-printed) and Style 10000 (embroidered) is the United States. Since the garments are not considered foreign articles for purposes of the country of origin marking label, 19 USC 1304 does not apply. The marking of the garments must be in accordance with the rules and regulations of the Textile Fiber Products Identification Act (15 U.S.C. 70 through 70k) promulgated by the Federal Trade Commission. 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