Classification and country of origin determination for women’s knitwear; 19 CFR 102.21(c)(4)

NY K89922 November 5, 2004 CLA2-61-RR:NC:TA:359: K89922 CATEGORY: Classification Mr. John A. Schoenig Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP Counselors at Law 399 Park Avenue, 25th Floor New York, NY 10022-4877 RE: Classification and country of origin determination for women’s knitwear; 19 CFR 102.21(c)(4) Dear Mr. Schoenig: This is in reply to your letter dated October 6, 2004, in which you, on behalf of BCTC Corp., requested a classification and country of origin determination for women’s knitwear that will be imported into the United States. Your sample and its component parts are returned as requested. FACTS: The subject merchandise consists of Style C5241/C5241S, a ladies knit cardigan which features a hood with a drawstring; a full front zippered opening; long hemmed sleeves; front pockets; and a rib knit waistband. The knit waistband provides minimal tightening at the waist. There are decorative strip appliqués across the chest and on the upper arms. The fiber content of the garment is 60% cotton and 40% polyester rib knit fabric. The outer surface of the garment measures more than nine stitches per two centimeters in the direction in which the stitches were formed. You have submitted the finished garment and the garment in its partial assembly stages. The manufacturing operations for the woman’s knit cardigan are as follows: CHINA: Cut the fabric into component parts Form the hood with drawstring Join the front and back panel at the shoulder seam Affix decorative strip appliqués to the front panels and sleeves Attach front pockets to the front panels El Salvador: Sew the side seams to join the front and back panels Attach the sleeves to the body Close the sleeve seams Attach the zipper to the left and right front panel Attach the hood subassembly to the body Attach rib knit waist band Finish, press and pack ISSUE: What are the classification and country of origin of the subject merchandise? CLASSIFICATION: The applicable subheading for the woman’s knitted cardigan will be 6110.20.2075, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for sweaters, pullovers…and similar articles, knitted or crocheted: Of cotton: Other: Other: Other: Women’s or girls’. The general rate of duty is 16.5% ad valorem. The cardigan falls within textile category designation 339. 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 U.S. Customs Service Textile Status Report, an internal issuance of the U.S. Customs Service, which is available at the Customs 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": HTSUSA 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. Section 102.21(e) states that the good must be assembled in a single country, territory or insular possession. Accordingly, as the cardigan is assembled in more than one country, territory or insular possession, it does not satisfy the conditions of the tariff shift and therefore, 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": (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 to shape nor wholly assembled in a single country, territory or insular possession 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, the woman’s knitted cardigan, the most important assembly processes are sewing the sleeves to the body; sewing the side seams; sewing the zipper to the front panels; attaching the rib knit waistband; and attaching the hood subassembly to the cardigan body; all of which occur in El Salvador. Accordingly, the country of origin of the woman’s knitted cardigan is El Salvador. HOLDING: The country of origin of the woman’s knitted cardigan is El Salvador. Based upon international textile trade agreements this product from El Salvador is not subject to quota and does not require 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 646-733-3049. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division