Classification and country of origin determination for men’s, women’s, and boys’ woven pants and shorts; 19 CFR 102.21(c)(4); most important assembly

N026924 May 23, 2008 CLA-2-62:OT:RR:NC:TA:N3:356 CATEGORY: Classification Mr. Anthony LoPresti S.J. Stile Associates Ltd. 181 South Franklin Avenue Valley Stream, NY 11581 RE: Classification and country of origin determination for men’s, women’s, and boys’ woven pants and shorts; 19 CFR 102.21(c)(4); most important assembly Dear Mr. LoPresti: This is in reply to your letter dated April 4, 2008, on behalf of Cintex Garment Factory, requesting a classification and country of origin determination for men’s, women’s, and boys’ woven pants and shorts 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 cut components, the partially assembled components as they complete each stage of assembly, and the finished garment as it will be imported into the United States. Style C08009 is a pair of women’s pants constructed from 100% cotton, blue denim fabric. Style C08009 has a flat waistband with five belt loops; a fly front opening with a zipper closure; a button on the waistband; two “J” patch pockets on the front; a patch pocket with a flap on the left leg over the side seam; two darts below the rear waistband; and hemmed legs. Style C08010 is a pair of men’s pants constructed from 100% cotton, blue denim fabric. Style C08010 has a flat waistband with five belt loops; a fly front opening with a zipper closure; a button on the waistband; two front quarter pockets; two rear patch pockets; a patch pocket with a flap on the left leg over the side seam; and hemmed legs. Style C08011 is a pair of men’s shorts constructed from 100% cotton, blue denim fabric. Style C08011 has a flat waistband with five belt loops; a fly front opening with a zipper closure; a button on the waistband; two front quarter pockets; a coin pocket inside the right front pocket; a rear yoke; patch pockets on the left leg over the side seam that consist of a small patch pocket with a flap sewn onto a larger patch pocket; two rear patch pockets with flaps; and hemmed legs. Style C08012 is a pair of boys’ pants constructed from 100% cotton, black denim fabric. Style C08012 has a flat waistband with five belt loops; a fly front opening with a zipper closure; a button on the waistband; two front quarter pockets; two rear patch pockets; a patch pocket with a flap on the left leg over the side seam; and hemmed legs. The manufacturing operations for Styles C08009, C08010, C08011 and C08012 are as follows: CHINA: The fabric is woven into bolts of cloth. The fabric is cut into component parts. The waistband is cut. The pockets are attached. The zipper is attached to the left front panel. The belt loops are made but are not cut to size. The left side seam is sewn closed. The left patch pocket is attached over the left side seam. The right side seam is sewn closed. MACAU: The inseam is sewn closed. The back rise is sewn closed. The zipper is attached to the right front panel. The front rise is sewn closed. CHINA: The waistband is attached. The belt loops are attached. The top stitching is done and the leg bottoms are hemmed. The garment is washed, finished, packed and inspected. The garment is exported to the United States. ISSUE: What are the classification and country of origin of the subject merchandise? CLASSIFICATION: The applicable subheading for Style C08009 is in 6204.62.4011, Harmonized Tariff Schedule of the United States, (HTSUS), which provides for: women’s or girls’ trousers … , of cotton: other: other: other: other: women’s trousers and breeches: blue denim. The rate of duty is 16.6% ad valorem. The applicable subheading for Style C08010 is in 6203.42.4011, Harmonized Tariff Schedule of the United States, (HTSUS), which provides for: men’s or boys’ trousers … , of cotton: other: other: other: men’s trousers and breeches: blue denim. The rate of duty is 16.6% ad valorem. The applicable subheading for Style C08011 is in 6203.42.4051, Harmonized Tariff Schedule of the United States, (HTSUS), which provides for: men’s or boys’ trousers, … and shorts: of cotton: other: men’s shorts: The rate of duty is 16.6% ad valorem. The applicable subheading for Style C08012 is in 6203.42.4046, Harmonized Tariff Schedule of the United States, (HTSUS), which provides for: men’s or boys’ trousers, … : of cotton: other: boys’ trousers and breeches: other: other. The rate of duty is 16.6% ad valorem. Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the World Wide Web at http://www.usitc.gov/tata/hts/. Style C08009 falls within textile category designation 348. Styles C08010, C08011 and C08012 fall within textile category designation 347. With the exception of certain products of China, quota/visa requirements are no longer applicable for merchandise which is the product of World Trade Organization (WTO) member countries. The textile category number above applies to merchandise produced in non-WTO member-countries. Quota and visa requirements are the result of international agreements that are subject to frequent renegotiations and changes. To obtain the most current information on quota and visa requirements applicable to this merchandise, we suggest you check, close to the time of shipment, the “Textile Status Report for Absolute Quotas” which is available on our web site at www.cbp.gov. For current information regarding possible textile safeguard actions on goods from China and related issues, we refer you to the web site of the Office of Textiles and Apparel of the Department of Commerce 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 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. Although the garments consist of two or more component parts, they are 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 garments are 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 the inseams, joining the back rise, joining the front rise and setting the zipper to the right front panel constitute the most important assembly processes. Accordingly, under Section 102.21(c)(4), the country of origin of Styles C08009, C08010, C08011 and C08012 is Macau, the country in which the most important assembly processes occur. HOLDING: The country of origin of Styles C08009, C08010, C08011 and C08012 is Macau. Based upon international textile trade agreements, products of Macau are not presently subject to visa requirements or 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