Classification and country of origin determination for a boy’s knit pullover; 19 CFR 102.21(c)(3)

N029321 May 28, 2008 CLA2-61:OT:RR:NC:WA 358 CATEGORY: Classification Mr. Kevin Maher C-Air Customhouse Brokers 181 South Franklin Avenue Valley Stream, NY 11581 RE: Classification and country of origin determination for a boy’s knit pullover; 19 CFR 102.21(c)(3) Dear Mr. Maher: This is in reply to your letter dated May 23, 2008, on behalf of Children’s Place, requesting a classification and country of origin determination for a boy’s knit pullover that will be imported into the United States. The submitted sample and partially assembled components will be returned to you as requested. FACTS: The submitted garment, style L2612L0022, will be constructed from cotton jersey knit fabric that has 13 stitches per two centimeters counted in the direction the fabric is formed. The pullover has a shirt collar, a partial neck opening that fastens left over right and is secured by a two button placket, long sleeves with rib knit cuffs and a rib knit bottom. All garment panels are knit in Korea. These panels include the front panel, the back panel, the two sleeve panels and the collar. The panels have self start bottoms and self finish sides. The panel components are assembled by means of linking and looping in China. ISSUE: What are the classification and country of origin of the subject merchandise? CLASSIFICATION: Although you propose classification in subheading 6110.20.2067, which provides for knit to shape articles described in statistical note 6 to this chapter, this is not possible because the front panel and back panel lack lines of demarcation and/or a change in stitch pattern at the neck as required by the note. The applicable subheading of style L2612L0022 will be 6110.20.2069, Harmonized Tariff Schedule of the United States (HTSUS), which provides for sweaters, pullovers, and similar articles, knitted or crocheted, of cotton, other, men’s or boys’, other. The general rate of duty is 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at 19 U.S.C. 3592), enacted on December 8, 1994, provided rules of origin for textiles and apparel entered, or withdrawn from warehouse for consumption, on and after July 1, 1996.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 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. If the good is not knit to shape and does not consist of two or more component parts, a change to heading 6101 through 6117 from any heading outside that group, except from heading 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408, 5512 through 5516, 5806, 5809 through 5811, 5903, 5906 through 5907, and 6001 through 6002, and subheading 6307.90, and provided that the change is the result of a fabric-making process. If the good is knit to shape, a change to heading 6101 through 6117 from any heading outside that group, provided that the knit-to-shape components are knit in a single country, territory, or insular possession. The definition of the term Knit to Shape is found in Section 102.21 (b): (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, appliqués, 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”. In the case of the subject garment, the panels that will make up the body of the garment contain lines of demarcation. Consequently, the subject garment is considered “knit to shape” as the term is defined above. Section 102.21 (e) requires a tariff shift to headings 6101 through 6117 from any heading outside that group. In this case, the panels that are knit in Korea with the lines of demarcation are classified within that group. The pullover, completed in China remains classified within that group. Thus, no classification change occurs in China, therefore 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; As noted above, the garment is considered knit to shape. Accordingly, Section 102.21 (c)(3)(i) is applicable to the subject merchandise. The country of origin for the garment is Korea, the single country where the garment is knit to shape. HOLDING: The country of origin for the boy’s pullover is Korea. Style L2612L0022 falls within textile category designation 338. 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. 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 Bruce Kirschner at 646-733-3048. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division