Classification and country of origin determination for a men’s knit rugby style garment; 19 CFR 102.21 (c)(4); most important assembly

NY L87935 October 26, 2005 CLA-2-RR:NC:TA:N3:356 L87935 CATEGORY: Classification Ms. Melissa Fox Barthco Trade Consultants 5101 South Broad Street Philadelphia, PA 19112 RE: Classification and country of origin determination for a men’s knit rugby style garment; 19 CFR 102.21 (c)(4); most important assembly Dear Ms. Fox: This is in reply to your letter dated September 28, 2005, on behalf of Tellas Ltd., requesting a classification and country of origin determination for a men’s knit rugby style garment that will be imported into the United States. You state that the assembly operations occur in two different countries, China and Macau. You have provided samples of the partially assembled garment parts in the condition in which they will be sent from each country and a sample of the finished garment as it will be imported into the United States. As requested, your samples will be returned. FACTS: The submitted garment, Sample 2, is a men’s rugby style pullover constructed from 100 percent cotton, pique knit fabric that measures 9 stitches per linear centimeter counted in the horizontal direction and 21 stitches per linear centimeter counted in the vertical direction. The garment has a partial front opening with three button closures; a woven fabric spread collar; short, hemmed sleeves; and a straight, hemmed bottom with side slits and a tail. The manufacturing operations for the garment are as follows: CHINA: The fabric is cut into component parts The front panel is hemmed The back panel is hemmed The placket is attached to the front panel The woven collar is formed MACAU: The shoulder seams are sewn closed The sleeves are attached at the armholes The sleeve seams are sewn closed The side seams are sewn closed CHINA: The sleeves are hemmed The side vents are formed and twill tape is attached The collar is attached The buttonholes are made and the buttons are attached The main and size labels are attached The side label is attached ISSUE: What are the classification and country of origin of the subject merchandise? CLASSIFICATION: The applicable subheading for the garment is in 6110.20.2065, Harmonized Tariff Schedule of the United States, (HTS), which provides for: sweaters, pullovers, sweatshirts, waistcoats (vests) and similar articles, knitted or crocheted: of cotton: other: other: other: men's or boys'. The rate of duty is 16.5 percent ad valorem. The garment falls within textile category designation 338. Quota and visa status are the result of international agreements that are subject to frequent renegotiations and changes. To obtain the most current information as to whether quota and visa requirements apply to this merchandise, we suggest that you check, close to the time of shipment, the “Textile Status Report for Absolute Quotas” available at our web site at www.cbp.gov. In addition, you will find current information on textile import quotas, textile safeguard actions and related issues at the web site of the Office of Textiles and Apparel, at otexa.ita.doc.gov. 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. Although the garment 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. Since the garment 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, the assembly processes in Macau consisting of joining of the front and back panels at the shoulders, attaching the sleeves, and joining the side seams constitute the most important assembly processes. Accordingly, under Section 102.21 (c)(4), the country of origin of the submitted garment is Macau, the country in which the most important assembly processes occur. HOLDING: The country of origin of the submitted garment is Macau. 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