Classification and country of origin determination for a men’s knit shirt; 19 CFR 102.21 (c)(2); tariff shift; 19 CFR 102.21 (c)(4); most important assembly

NY K80669 November 24, 2003 CLA-2-RR:NC:TA:N3:356 K80669 CATEGORY: Classification Mr. Bernard Seah Corporate Manager Ghim Li Enterprise (USA), Inc. 501 Seventh Avenue, Suite 509 New York, NY 10018 RE: Classification and country of origin determination for a men’s knit shirt; 19 CFR 102.21 (c)(2); tariff shift; 19 CFR 102.21 (c)(4); most important assembly Dear Mr. Seah: This is in reply to your letter dated October 30, 2003 (your reference 01/1027), requesting a classification and country of origin determination for a men’s knit shirt that will be imported into the United States. Two different production plans are being considered. In each plan, the assembly operations occur in two different countries, designated as Country “A” and Country “B”. Although not stated in your letter, we assume that Countries “A” and “B” denote different foreign countries, territories or insular possessions, and such countries will not include Israel or a signatory of the North American Free Trade Agreement. A sample was submitted with your inquiry. FACTS: Style 44809 is a men’s knit shirt constructed from 100 percent cotton, jersey knit fabric that measures 15 stitches per linear centimeter counted in the horizontal direction and 21 stitches per linear centimeter counted in the vertical direction. The garment has a full front opening with a six button placket; a point collar with a collar band; long sleeves with single button cuffs; embroidery on the front panels; and a curved, hemmed bottom. The manufacturing operations for Production Plan #1 are as follows: COUNTRY A: The pattern is made and marked The fabric is cut into component parts The front panels are machine embroidered The collar and cuffs are formed COUNTRY B: The front and back panels are joined at the shoulder seams The collar is attached to the main body The main and care labels are attached at the neckline The cuffs with buttons are attached to the sleeves The sleeves are attached to the front and back panels at the armholes The side seams are sewn joining the front and back panels The placket is formed on the front panel The buttonholes are made and the buttons are sewn to the front placket The front and back panels are hemmed The threads are trimmed The garment is inspected and packed for export The manufacturing operations for Production Plan #2 are as follows: COUNTRY A: The pattern is made and marked The fabric is cut into component parts The front panels are machine embroidered The collar and cuffs are formed The front and back panels are joined at the shoulder seams The placket is formed on the front panel COUNTRY B: The collar is attached to the main body The main and care labels are attached at the neckline The cuffs with buttons are attached to the sleeves The sleeves are attached to the front and back panels at the armholes The side seams are sewn joining the front and back panels The buttonholes are made and the buttons are sewn to the front placket The front and back panels are hemmed The threads are trimmed The garment is inspected and packed for export ISSUE: What are the classification and country of origin of the subject merchandise? CLASSIFICATION: The applicable subheading for Style 44809 is in 6105.10.0010, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for men’s or boys’ shirts, knitted or crocheted: of cotton: men’s. The rate of duty is 19.8 percent ad valorem. The shirt falls within textile category designation 338. 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 Textile Status Report for Absolute Quotas, which is available at our Web Site at www.cpb.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: Section 334 of the Uruguay Round Agreements Act (codified at 19 U.S.C. 3592), enacted on December 8, 1994, provided rules of origin for textiles and apparel entered, or withdrawn from warehouse for consumption, on and after July 1, 1996. Section 102.21, Customs 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, and accordingly, section 102.21 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 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. For Production Plan #1, the submitted garment is not knit to shape and consists of two or more parts. Since the embroidery and the construction of the collar and cuffs are considered minor processes, they do not affect the status of the good as being wholly assembled in a single country. As all of the assembly operations to form the finished good in Production Plan #1 occur in Country “B”, the garment is considered “wholly assembled” in a single country, that is Country “B”. As per the terms of the tariff shift requirement, country of origin is conferred in Country “B” for Production Plan #1. For Production Plan #2, although the shirt is not knit to shape and consists of two or more component parts, it is not wholly assembled in a single country, territory or insular possession. Accordingly, as the terms of the tariff shift are not met, 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”: 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 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. For Production Plan #2, since the shirt is neither knit 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 Production Plan #2, the assembly processes in Country “B” consisting of the attachment of the collar, the attachment of the sleeves to the front and back panels, and the joining of the side seams constitute the most important assembly processes. Accordingly, under Section 102.21 (c)(4), the country of origin of the garment in Production Plan #2 is Country “B”, the country in which the most important assembly processes occur. HOLDING: The country of origin of Style 44809 in Production Plan #1 and Production Plan #2 is Country “B”. Based upon international textile trade agreements, products of Country “B” may be subject to visa requirements and quota restraints. 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 sections 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 Mary Ryan at 646-733-3271. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division