Classification and country of origin determination for a woman’s knit tank top; 19 CFR 102.21(c)(3)

N091276 February 4, 2010 CLA2-61:OT:RR:NC:TA:361 CATEGORY: Classification Ms. Kay Morrell JC Penney Purchasing Corporation 6501 Legacy Drive MS 2316 Plano, Texas 75024-3698 RE: Classification and country of origin determination for a woman’s knit tank top; 19 CFR 102.21(c)(3) Dear Ms. Morrell: This is in reply to your letter dated January 15, 2010 requesting a classification and country of origin determination for a woman’s knit tank top that will be imported into the United States. The submitted sample and partially assembled components will be retained by this office. FACTS: The submitted garment, style PPK#15858, will be constructed from 95 percent nylon and 5 percent spandex tubular knit fabric. The seamless tank top has a U-shaped neckline in front and back, shoulder straps that measure less than two inches at the top and a tubular bottom. The armholes and neckline are reinforced with elastic tape and hemmed. The tubular knit section that will become the body of the garment has lines of demarcation made by a change in the knit pattern. These lines of demarcation identify the front and back neckline, shoulder straps and armholes. The manufacturing operations are as follows: CHINA Knit tubular body component with lines of demarcation Dye tubular fabric Cut to shape fabric Vietnam Shoulder seams closed Cut “mobilon” tape to size Attach tape to the front and back neckline and armholes Hem the front and back neckline and armholes Apply heat seal label to the garment Packaging for export to the United States ISSUE: What are the classification and country of origin of the subject merchandise? CLASSIFICATION: The applicable subheading will be 6109.90.1065, Harmonized Tariff Schedule of the United States (HTSUS), which provides for tank tops…knitted or crocheted: Of man-made fibers: Women’s. The duty rate will be 32% 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at 19 U.S.C. 3592), enacted on December 8, 1994, provided rules of origin for textiles and apparel entered, or withdrawn from warehouse for consumption, on and after July 1, 1996.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 portion that will make up the body of the garment contains 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 tube knit in China with the lines of demarcation is classified within that group. The tank top, completed in the Vietnam remains classified within that group. Thus, no classification change occurs in the Vietnam, 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 China, the single country where the garment is knit to shape. You state in your letter that the country of origin should be Vietnam based upon its similarity to the garment in New York ruling I89283. However, your garment is different because it has lines of demarcation incorporated during the knitting process while the garment in I89283 did not have lines of demarcation. HOLDING: The country of origin for the tank top is China. 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