Classification and country of origin determination for a man’s shirt jacket; 19 CFR 102.21(c)(4)

NY K83998 March 31, 2004 CLA2-RR:NC:WA:355 K83998 CATEGORY: Classification Mr. Darrell J. Sekin, Jr. DJS International Services, Inc. P.O. Box 612785 DFW Airport, TX 75261 RE: Classification and country of origin determination for a man’s shirt jacket; 19 CFR 102.21(c)(4) Dear Mr. Sekin: This is in reply to your letter dated March 9, 2004, requesting a classification and country of origin determination for a man’s shirt jacket, which will be imported into the United States. This request was made on behalf of George Wu, Inc. FACTS: The subject merchandise consists of a man’s shirt jacket. The garment is made of a woven cotton flannel fabric shell lined with woven polyester fabric filled with polyester fiberfill. The shirt features a left over right front opening secured with seven buttons; two chest pockets with buttoned flaps; long sleeves with buttoned plackets and cuffs; two side seam pockets; two side seam vents; and a straight hemmed bottom. You presented four different manufacturing scenarios involving China and Nicaragua. In all of the scenarios, the fabric, both shell and lining, is woven in China. The manufacturing operations for the shirt are as follows: Scenario A: China: The fabric is cut into component parts Nicaragua: The fabric is assembled into the completed shirt Buttons are attached The shirt is inspected, ironed and packed for export to the United States Scenario B: China: The fabric is cut into component parts The collar is assembled The cuffs are assembled The pockets are formed The pockets and flaps are attached to the front shirt panels The side pockets are sewn to the front body panels The front placket is sewn The lining is attached The buttonholes are formed The buttons are sewn The bottom hem is sewn The lining in the back yoke is sewn Nicaragua: The shoulder seam is sewn joining the front and back panels The side seams are sewn The sleeves are sewn closed The bottom hem is finished The collar is attached to the body The sleeves are sewn to the body The sleeves and cuffs are attached Buttons are attached The shirt is inspected, ironed and packed for export to the United States Scenario C: China: The component parts for cut The collar assembly is sewn The cuff assembly is sewn The pocket flap assemblies are sewn The front pockets and flaps are sewn to the front shirt panels The side pockets are sewn to the front panels The front placket is formed The lining is attached The sleeve plackets are sewn and attached to the sleeves The shoulder seam is sewn joining the front and back panels The side seams are sewn shut The sleeves are attached to the shirt body Nicaragua: The sleeve seams are sewn shut and overlocked The side seams are overlocked The bottom hem is stitched The collar is joined to the shirt body The cuffs are attached to the sleeves Buttons are attached The shirt is inspected, ironed and packed for export to the United States Scenario D: China: The components are cut The subassemblies, collar, cuffs sleeve plackets are formed The pockets, front and side, are attached to the front panels The lining is sewn to the panels The sleeves are attached to the body The front and back panels are joined at the shoulder The side seams are sewn together Nicaragua: The collar is attached to the shirt The cuffs are sewn to the sleeves The shirt is hemmed The shirt is inspected, ironed and packed for export to the United States ISSUE: What are the classification and country of origin of the subject merchandise? CLASSIFICATION: The applicable subheading for the shirts will be 6205.20.2046, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for Men’s or boys’ shirts: Of cotton: Other: Other: Other: With two or more colors in the warp and/or the filling: Napped. The rate of duty will be 19.7% ad valorem. The shirt falls within textile category designation 340. 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.cbp.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 6201 - 6208 If the good consists of two or more component parts, a change to an assembled good of heading 6201 through 6208 from unassembled components, provided that the change is the result of the good being wholly assembled in a single country, territory, or insular possession. Section 102.21(e) states that the garment must be assembled in a single country, territory or insular possession. In Scenario A, the shirt is completely assembled in Nicaragua. Section 102.21(c)(2) applies to Scenario A. However, for Scenarios B, C and D, assembly takes place in more than one country, territory or insular possession and Section 102.21(c)(2) is inapplicable. Therefore, the analysis is continued for the remaining three manufacturing scenarios. 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, 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 the subject merchandise as described in Scenario B, joining the front and back panels, joining the side seams, sewing the sleeves, attaching the collar, attaching the sleeves, cuffs and buttons constitute the most important assembly processes. Accordingly, the country of origin of the shirt in Scenario B is Nicaragua. In the case of the subject merchandise as described in Scenario C, making the collar assembly, making the cuff assembly, sewing the pockets to the panels, sewing the front placket, attaching the lining, sewing the sleeves to the shirt, joining the front and back panels, and sewing the side seams together constitute the most important assembly processes. Accordingly, the country of origin of the shirt in Scenario C is China. In the case of the subject merchandise as described in Scenario D, forming the collar, cuff and sleeve placket subassemblies, attaching the pockets, attaching the lining, attaching the sleeves, sewing the front and back panels together at the shoulder and sewing the side seams together constitute the most important assembly processes. Accordingly, the country of origin of the shirt in Scenario D is China. HOLDING: The country of origin of the shirt in Scenarios A and B is Nicaragua. Based upon international textile trade agreements products of Nicaragua are not subject to quota and do not require a visa. The country of origin of the shirt in Scenarios C and D is China. Based upon international textile trade agreements products of China are subject to quota and the requirement of a visa. 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 Camille R. Ferraro at 646-733-3046. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division