Classification and country of origin determination for scrub tops and pants: Products of the West Bank, the Gaza Strip or a Qualifying Industrial Zone; General Head Note 3(a) (v): 19 CFR 102.21(c) (2); tariff shift

N057567 April 20, 2009 CLA-2-62:OT:RR:NC:TA:360 CATEGORY: Classification Ms. Heather Furst Stafford Textiles Limited 2200 Lakeshore Boulevard, W Suite 308 Toronto, Ontario M8V 1A4 RE: Classification and country of origin determination for scrub tops and pants: Products of the West Bank, the Gaza Strip or a Qualifying Industrial Zone; General Head Note 3(a) (v): 19 CFR 102.21(c) (2); tariff shift Dear Ms. Furst: This is in reply to your letter dated April 7, 2009, requesting a country of origin and duty preference eligibility determination for a scrub tops and scrub pants, styles 14000 and 14020, which will be imported into the United States from Egypt. FACTS: Style 14100 is a unisex scrub top constructed from 65 percent polyester and 35 percent cotton woven fabric. Style 14100 features a V-neckline, short sleeves, two pockets below the waist and a hemmed bottom. Style 14020 is a pair of unisex scrub pants constructed from 65 percent polyester and 35 percent cotton woven fabric. Style 14020 features an elasticized waist, side pockets on the legs features capped sleeves, a V-neckline, a left breast pocket and a hemmed bottom. You state that the fabric will be shipped from China to a Qualifying Industrial Zone in Egypt and that subsequent manufacturing operations for the top and pants will occur in the QIZ in Egypt. ISSUE: What are the classification, country of origin, and duty preference eligibility of the subject merchandise? CLASSIFICATION: The applicable subheading for style 14100 will be 6211.43.0060, Harmonized Tariff Schedule of the United States (HTSUS) which provides for track suits, ski-suits and swimwear; other garments: other garments, women’s or girls’: of man-made fibers: blouses, shirts and shirt-blouses, sleeveless tank styles and similar upper body garments, excluded from heading 6206. The duty rate will be 16 percent ad valorem. The applicable subheading for style 14020 will be 6204.63.3510, Harmonized Tariff Schedule of the United States (HTSUS), which provides for women’s or girls’ suits, ensembles, suit-type jackets, blazers, dresses, skirts, divided skirts, trousers, bib and brace overalls, breeches and shorts (other than swimwear): trousers, bib and brace overalls, breeches and shorts: of synthetic fibers: other: other: other: other: women’s. The duty rate will be 28.6 percent ad valorem. Duty rates are provided for you 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 or 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.” 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 the “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 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 As the garments are wholly assembled in a single country, that is, Egypt, the terms of the tariff shift are met. The country of origin is conferred in Egypt, QIZ. STATUS UNDER THE UNITED STATES-ISRAEL FREE TRADE AGREEMENT Pursuant to the authority conferred by section 9 of the U.S.-Israel Free trade Area Implementation Act of 1985 (19 U.S.C. §2112 note), the President issued Proclamation No. 6955 dated November 13, 1996 (published in the Federal Register on November 18, 1996 (61 Fed. Reg. 58761), which modified the Harmonized tariff Schedule of the United States (HTSUS) (by creating a new General Note 3(a)(v) to provide duty-free treatment to articles which are the product of the West Bank, Gaza Strip or a qualifying industrial zone, provided certain requirements are met. Such treatment was effective for products of the West Bank, Gaza Strip or a qualifying industrial zone entered or withdrawn from warehouse for consumption on or after November 21, 1996. Under General Note 3(a)(v), HTSUS, articles the product of the West Bank, Gaza Strip, or a qualifying industrial zone which are imported directly to the U.S. from the West Bank, Gaza Strip, a qualifying industrial zone or Israel qualify for duty-free treatment, provided the sum of 1) the cost or value of materials produced in the West Bank, Gaza Strip, a qualifying industrial zone or Israel, plus 2) the direct costs of processing operations performed in the West Bank, Gaza Strip, a qualifying industrial zone or Israel, is not less than 35% of the appraised value of such articles when imported into the United States. An article is considered to be a product of the West Bank, Gaza Strip, a qualifying industrial zone if it is either wholly the growth, product or manufacture of one of those areas or a new and different article of commerce that has been grown, produced or manufactured in one of those areas. Based upon the information provided for the scrub tops and scrub pants, the garments are cut and sewn in one of the Egyptian Qualifying Industrial Zones. The scrub tops and scrub pants meet the country of origin requirements in the West Bank, Gaza Strip, or a qualifying industrial zone, specifically, in Egypt, under the applicable rules of origin for textiles and are considered to be a product of the West Bank, Gaza Strip or a qualifying industrial zone. With respect to the requirement that the articles be imported directly, General Note 3(a) (v) (B) (1) provides in pertinent part that: Articles are “imported directly” for purposes of this paragraph if- 1) they are shipped directly from the West Bank, Gaza Strip, a qualifying industrial zone or Israel into the United States without passing through the territory of any intermediate country; You state that the scrub tops and scrub pants are imported directly into the United States. We are unable to state definitively that the scrub tops and scrub pants will or will not satisfy the 35% value content requirement. Whether the requirement is satisfied can only be ascertained when the “appraised value” of the garments is determined at the time of entry into the United States. HOLDING: The country of origin of the scrub top and scrub pants is Egypt. If the garments are produced in an approved Qualifying Industrial Zone, they will be considered to be products of the West Bank, Gaza Strip or QIZ and will be eligible for duty free treatment under General Note 3(a) (v), HTSUS, assuming that they are imported directly from the West Bank, Gaza Strip, QIZ or Israel, and the 35% value content requirement is satisfied. 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 the country of origin. Accordingly, if there is any change in the facts submitted to Customs, it is recommended that a new request be submitted in accordance with 19CFR 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 Brenda Wade at (646) 733-3051. Sincerely, Robert B. Swierupski Director National Commodity Specialist Division