Classification and country of origin determination for a woman’s knit blouse; 19 CFR 102.21(c)(2)

N031916 July 21, 2008 CLA2-OT:RR:NC:TA: 361 CATEGORY: Classification Ms. Florence Lo Clover Garments, Inc. 2565 3rd Street, Rm. 232 San Francisco, CA 94107 RE: Classification and country of origin determination for a woman’s knit blouse; 19 CFR 102.21(c)(2) Dear Ms. Lo: This is in reply to your letter dated June 17, 2008, requesting a classification and country of origin determination for a woman’s shirt, which will be imported into the United States. FACTS: The submitted garment, style 0417918SSPBD, is a woman’s polo shirt constructed from 97 percent cotton and 3 percent lycra pique knit fabric with more than ten stitches per centimeter in both the horizontal and vertical directions. The polo shirt has a rib knit spread collar, beadwork on the left chest area, a partial front opening with a five button left-over-right closure, short sleeves with rib knit cuffs and a hemmed bottom with side slits. The garment has a left over right closure. Chapter 61, note 9 states, in part:Garments of this chapter designed for left over right closure at the front shall be regarded as men's or boys' garments, and those designed for right over left closure at the front as women's or girls' garments. These provisions do not apply where the cut of the garment clearly indicates that it is designed for one or other of the sexes. As the shirt has a left over right front closure, the presumption is that it will be for men. However, it is clear based on the cut that it was designed for women. Therefore, the shirts will be classified as women’s garments. You present three scenarios. In all three scenarios the fabric and beadwork will be processed in China. The assembly will be performed in either Nicaragua, Mexico or Thailand. The manufacturing operations for the shirts are as follows: COUNTRY “A” (KOREA) Yarn made COUNTRY “B” (JAPAN) Yarn made Interlining fabric knitted COUNTRY “C” (CHINA) Body fabric knitted Fabric dyed and finished Body fabric cut into components Hand beading of logo on front panel Collars and cuffs knit to shape COUNTRY “D” (NICARAGUA, MEXICO OR THAILAND) Cut trim fabric Sew front placket to interlining Sew cuff to sleeve Attach sleeve to the body Join the front and back panels Attach the collar to the neck with binding tape Sew the buttonholes and attach the buttons on placket Sew the side seams Sew front and back side vents Hem the bottom Sew on label Attach hangtags Ironing and packing for export ISSUE: What are the classification and country of origin of the subject merchandise? CLASSIFICATION: The applicable subheading for the shirt will be 6106.10.0010, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Women’s shirts, knitted or crocheted: Of cotton: Women’s. The general rate of duty will be 19.7% 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. Paragraph (b) (6) defines "wholly assembled" as:The term "wholly assembled" when used with reference to a good means that all components, of which there must be at least two, preexisted in essentially the same condition as found in the finished good and were combined to form the finished good in a single country, territory, or insular possession. Minor attachments and minor embellishments (for example, appliqués, beads, spangles, embroidery, buttons) not appreciably affecting the identity of the good, and minor subassemblies (for example, collars, cuffs, plackets, pockets) will not affect the status of a good as "wholly assembled" in a single country, territory, or insular possession.      The submitted garment is not knit to shape and consists of two or more parts. Since the beadwork is considered a minor embellishment, it does not affect the status of the good as being wholly assembled in a single country. As all of the assembly operations occur in Country "D" (Nicaragua, Mexico or Thailand), the garments are considered "wholly assembled" in a single country, that is, Country "D" (Nicaragua, Mexico or Thailand). As per the terms of the tariff shift requirement, country of origin is conferred in Country "D" (Nicaragua, Mexico or Thailand). HOLDING: The shirt falls within textile category 339. The country of origin of the garment is Country “D” (Nicaragua, Mexico or Thailand). 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 Peggy Fitzgerald at 646-733-3052. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division