Classification and country of origin determination for women’s knitted pullovers and a sweater; 19 CFR 102.21(c)(3)

N027823 June 4, 2008 CLA2-OT:RR:NC:TA:359 CATEGORY: Classification Mr. Joseph R. Hoffacker Barthco Trade Consultants The Navy Yard 5101 S. Broad Street Philadelphia, PA 19112-1404 RE: Classification and country of origin determination for women’s knitted pullovers and a sweater; 19 CFR 102.21(c)(3) Dear Mr. Hoffacker: This is in reply to your letter dated May 1, 2008, which you submitted on behalf of your client, B2X Corporation, requesting a classification and country of origin determination for women’s garments which will be imported into the United States. FACTS: The subject merchandise consists of three garments styles G300257, G300561, and G300417. Descriptions of the garments follow. Style G300257 is a women’s long set-in sleeve mock neck pullover constructed of a 100% cotton 3 x 3 ribbed knit fabric that measures more than 9 stitches per 2 centimeters counted in the horizontal direction. Style G300257 features a straight self-start garment bottom, self-start sleeve bottoms, and a tab measuring approximately 2-1/2 inches on the outer surface of the upper back panel. You have submitted the component panels and pieces from which the pullover was constructed. These consist of the following: Front & back panels: - self-start ribbed knit bottoms - self-finished sides - armholes and neckline contoured to shape during the knitting process Two sleeve panels: - self-start bottoms - self-finished sides - armholes contoured to shape during the knitting process Strip of fabric for the tab. For the purpose of determining the country of origin of style G300257, the front and back panels (noting the bottom, sides, armholes and neckline) and the two sleeve panels (noting the bottoms, sides and the armholes) are all considered to be knit-to-shape components. Since these component panels (the "major parts") are knit to shape, the pullover is considered knit to shape. Style G300561 is a women’s long set-in sleeve v-shaped neckline pullover constructed of a 100% cotton 6 x 2 cable ribbed knit fabric that measures more than 9 stitches per 2 centimeters counted in the horizontal direction. Style G300561 features a straight 2 x 2 rib knit self-start garment bottom, self-start 2 x 2 rib knit sleeve bottoms, and 2 x 2 rib knit trim at the neckline. The component panels and pieces from which the pullover was constructed consist of the following: Front panel: - self-start ribbed knit bottoms - self-finished sides - armholes and neckline contoured to shape during the knitting process Back panel: - self-start ribbed knit bottoms - self-finished sides - armholes contoured to shape during the knitting process - curve of the neckline contoured to shape Two sleeve panels: - self-start bottoms - self-finished sides - armholes contoured to shape during the knitting process Strip of fabric for the neckline trim. For the purpose of determining the country of origin of style G300561, the front panel (noting the bottom, sides, armholes and neckline), the back panel (noting the bottom, sides, armholes and neckline), and the two sleeve panels (noting the bottoms, sides and the armholes) are all considered to be knit-to-shape components. Since these component panels (the "major parts") are knit to shape, the pullover is considered knit to shape. Style G300417 is a women’s 100% cotton cardigan sweater that has a full front 3 button opening with ribbed knit trim at the rounded neckline, a ribbed knit placket, and set-in ¾ length sleeves with ribbed knit bottoms. Most of the fabric of the body is composed of a jersey fabric with a self-start ribbed knit bottom and a ribbed knit finish at the shoulder area. The jersey fabric has an outer surface that measures fewer than 9 stitches per two centimeters in the direction that the stitches were formed. The remainder of the fabric of the body is composed of two vertical 2 x 2 rib knit fabric strips that are found at the sides underneath the armholes. The component panels and pieces from which the sweater was constructed consist of the following: Two front panels: - self-start ribbed knit bottoms - self-finished sides - neckline and armholes contoured to shape during the knitting process Back panel: - self-start ribbed knit bottoms - self-finished sides - neckline and armholes contoured to shape during the knitting process Sleeve panels: - self-start ribbed knit bottoms - self-finished sides - armholes contoured to shape during the knitting process Two strips of fabric for insertion under each arm at the sides of the cardigan. Two strips of fabric for the placket. One strip of fabric for the neckline trim. For the purpose of determining the country of origin of style G300417, the front panel (noting the bottom, sides, armholes and neckline), the back panel (noting the bottom, sides, armholes and neckline), and the two sleeve panels (noting the bottoms, sides and the armholes) are all consider to be knit-to-shape components. Since these component panels (the "major parts") are knit to shape, the sweater is considered knit to shape. The manufacturing operations for the garments are as follows: In China Cotton yarn is made and dyed to color. In Japan The component parts are knitted and packaged and shipped to China. In China The knit components are assembled by linking to produce a finished garment. Fiber content, care labels, and hangtags are sewn into the garment. The garments are folded, packaged in plastic bags and placed in export cartons for shipment from China via Hong Kong to the United States by air or ocean freight. ISSUE: What are the classification and country of origin of the subject merchandise? CLASSIFICATION: For the purposes of Chapter 61 Statistical Note 6, the rear tab component does not have a self-start bottom; all components of Style G300257 are not knit to shape. Consequently, the applicable subheading for Style G300257 will be 6110.20.2079, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Sweaters, pullovers, sweatshirts, waistcoats (vests) and similar articles, knitted or crocheted: Of cotton: Other: Other: Other: Women’s or girls’: Other. The general rate of duty will be 16.5% ad valorem. For the purposes of Chapter 61 Statistical Note 6, all components of Style G300561 are knit to shape. Consequently, the applicable subheading for Style G300561will be 6110.20.2077, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Sweaters, pullovers, sweatshirts, waistcoats (vests) and similar articles, knitted or crocheted: Of cotton: Other: Other: Other: Women’s or girls’: Knit to shape articles described in statistical note 6 to this chapter. The general rate of duty will be 16.5% ad valorem. The applicable subheading for Style G300417 will be 6110.20.2020 , Harmonized Tariff Schedule of the United States (HTSUS), which provides for Sweaters, crocheted: of cotton: other . . . other: sweaters: women’s. The rate of duty will be 16.5% 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 World Wide Web at http://www.usitc.gov/tata/hts/. 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, “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, “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, 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 6101-6114 If the good is not knit to shape and consists of two or more component parts, a change to an assembled good of 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. As the three garments are classifiable in heading 6110, HTSUS, Section 102.21 (e) requires a tariff shift to headings 6101 through 6117 from any heading outside that group. In the case of the three garments, a tariff shift to heading 6110, HTSUS, occurs in Japan, but from components that are classifiable in heading 6117, HTSUS. As heading 6117, HTSUS, is excepted by Section 102.21 (c) (2), the tariff shift is not applicable. Section 102.21(c)(3) applies where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1) or (2) and where the merchandise consists of either a good that was knit to shape or (with the exception for goods of certain specifically enumerated headings), was wholly assembled in a single country, territory, or insular possession.Section 102.21 (c)(3)(i) provides the following: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; ...Section 102.21 (b) states that:(3) KNIT TO SHAPE: The term "knit to shape" applies to any good of which 50 percent or more of the exterior surface area is formed by major parts that have been knitted or crocheted directly to the shape used in the good, with no consideration being given to patch pockets, appliques, or the like. Minor cutting, trimming, or sewing of those major parts will not affect the determination of whether a good is "knit to shape". (4) MAJOR PARTS: The term "major parts" means integral components of a good but does not include collars, cuffs, waistbands, plackets, pockets, linings, paddings, trim, accessories, or similar parts. As the subject garments are knit to shape in a single country, that is, Japan, Section 102.21(c)(3) applies. HOLDING: The country of origin of the three garments is Japan. Styles G300257 and G300561 fall within textile category 339 and style G300417 falls within textile category 345. 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. 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. 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 Francine Vivona-Brock at 646-733-3049. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division