Classification and country of origin determination for boy’s woven pants with fabric belt; Products of the West Bank, the Gaza Strip or a Qualifying Industrial Zone; General Note 3(a)(v); 19 CFR 102.21(c)(4)

N199919 January 19, 2012 CLA-2-OT:RR:NC:N3:358 CATEGORY: Classification Ms. Joan Brinson Dressler VF Jeanswear LP 400 North Elm Street Greensboro, NC 27401 RE: Classification and country of origin determination for boy’s woven pants with fabric belt; Products of the West Bank, the Gaza Strip or a Qualifying Industrial Zone; General Note 3(a)(v); 19 CFR 102.21(c)(4) Dear Ms. Dressler: This is in reply to your letter dated January 9, 2012, requesting classification and eligibility for preferential duty treatment for a pair of boy’s pants with a fabric belt. FACTS: The submitted sample, Style 5CNBTBP, is a pair of five pocket boy’s jeans with woven textile belt. The pants are constructed from 100% cotton blue denim fabric. The belt is constructed of woven cotton fabric and has a D-ring closure. The pants have a flat waistband with five belt loops; a left over right fly opening with a zipper and button closure; two front pockets; one coin pocket; two back patch pockets with embroidery and hemmed fabric at the leg openings. The textile belt and buckle are threaded through the belt loops. You state the manufacturing operations for the pants and belts are as follows: The Chinese fabric for the pants is shipped in rolls to the QIZ facility. The fabric is cut and assembled in the Egypt QIZ into pants. The textile belt will be made in China and shipped to the Egypt QIZ where it will be looped into the garment. The pants and textile belt will be exported directly to the United States. ISSUE: What is the classification? Will the garments qualify for duty-free treatment under General Note 3(a)(v), HTSUS, when imported into the U.S? CLASSIFICATION: The pants and textile belt fall within the description of a composite good as provided in the Explanatory Notes to the Harmonized Tariff Schedule. The pants and textile belt are sold together at retail as a unit. They are adapted to each other, are mutually complementary and together form a whole that would not normally be offered for sale in separate parts. Therefore, the pants and belt are considered a composite good, and as such, are classified under the same Harmonized Tariff number, and the same category number applies to the entire unit. Classification is based on the item that provides the essential character to the unit. As the belt is an accessory to the pants, the essential character is imparted by the pants.    The applicable subheading for Style 5CNBTBP will be 6203.42.4036, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Men’s or boys’ trousers and breeches, of cotton, other, other, boys’ trousers and breeches, blue denim, other. The duty rate will be 16.6% 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: Under GN 3(a)(v), HTSUS, articles which are the product of the West Bank, the Gaza Strip or a QIZ and which are imported directly to the United States from the West Bank, the Gaza Strip, a QIZ or Israel qualify for duty-free treatment, provided the sum of (1) the cost or value of materials produced in the West Bank, the Gaza Strip, QIZ, or Israel, plus (2) the direct costs of processing operations performed in the West Bank, the Gaza Strip, QIZ or Israel, is not less than 35% of the appraised value of such articles when imported into the U.S. An article is considered to be a "product of" the West Bank, the Gaza Strip, or a QIZ if it is either wholly the growth, product or manufacture of one of those areas or a new or different article of commerce that has been grown, produced or manufactured in one of those areas. With regard to the eligibility of the subject boy’s pants with textile belt, we apply the rules of origin set forth in 19 CFR § 102.21 to determine whether this good qualifies as a product of a QIZ under GN 3(a)(v). The composite good at issue is classified in heading 6203, HTSUS, and is produced from processing occurring in more than one country. As such, under § 102.21(c)(2), we look to the rule set forth for goods of heading 6203 set forth in section (e) of § 102.21. The applicable rule requires that if the good consists of two or more component parts that it undergo a change to an assembled good of heading 6203 from unassembled components provided the change is the result of the good being wholly assembled in a single country, territory or possession. “Wholly assembled” is defined in § 102.21(b)(6) as meaning: 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. Based on the information provided, the boy’s pants are “wholly assembled” in the QIZ and therefore they are “products of” the 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 (QIZ), 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. You state that the processing operations will be performed in a QIZ in Egypt. General Note 3(a)(v)(G), HTSUS, defines a “qualifying industrial zone” as any area that: “(1) encompasses portions of the territory of Israel and Jordan or Israel and Egypt; (2) has been designated by local authorities as an enclave where merchandise may enter without payment of duty or excise taxes; and (3) has been designated by the U.S. Trade representative in a notice published in the Federal Register as a qualifying industrial zone.” Presidential Proclamation 6955 delegated to the United States Trade Representative the authority to designate qualifying industrial zones. See GN 3(a)(v)(G)(3), supra. The governments of Israel and Egypt jointly requested the designation as a qualifying industrial zone of areas comprising a Greater Cairo zone, Alexandria zone, Suez Canal zone and Central Delta zone. The names and locations of the factories comprising these four zones were specified on maps and materials submitted by Egypt and Israel and on file with the Office of the U.S. Trade Representative. For the purposes of this letter, we will assume that the QIZ you are using will meet the requirements of General Note 3(a)(v)(G), HTSUS. Under General Note 3 (a)(v), HTSUS, articles the products of the West Bank, Gaza Strip or a QIZ which are imported directly to the United States from the West Bank, Gaza Strip, a QIZ 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, or QIZ or Israel, plus (2) the direct costs of processing operations performed in the West Bank, Gaza Strip, a QIZ 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, or a QIZ 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. With respect to the requirement that the articles be imported directly, General Note 3(a)(v) (B)(1) provides that: Articles are “imported directly” for purposes of this paragraph if: (1) they are shipped directly from the West Bank, the Gaza Strip, a qualifying industrial zone or Israel into the United States without passing through the territory of any intermediate country; You have stated in your letter that the garments will be imported directly from the QIZ to the United States and that the 35% value content requirement will be met in the “appraised value” of the merchandise as determined at the time of entry into the United States. HOLDING: The country of origin of the submitted garment is Egypt. The entity made up of the pants and textile belt is a "product of “ the QIZ. The country of origin of the subject composite good consisting of boy’s pants with a textile belt is the QIZ, i.e., where the pants are wholly assembled. As such, the composite good is a “product of” the QIZ in which the pants are wholly assembled. Provided that the 35 percent value added requirement is met, the composite good would qualify for preferential treatment under GN 3(a)(v). 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, Thomas J. Russo Director National Commodity Specialist Division