Country of origin determination for a slipper sock; 19 CFR 102.21(c)(3)

N302348 February 20, 2019 CLA2-OT:RR:NC:N3:354 CATEGORY: Country of Origin TARIFF NO.: 6115.96.9020 Mr. John B. Pellegrini McGuireWoods LLP 1251 Avenue of the Americas 20th Floor New York, NY 10020 RE: Country of origin determination for a slipper sock; 19 CFR 102.21(c)(3) Dear Mr. Pellegrini: This is in reply to your letter, requesting a country of origin determination on behalf of GCE International, Inc. for a slipper sock, which will be imported into the United States. You have provided samples of the knitted panel as well as the finished slipper sock, as it will be imported into the United States. As requested, your samples will be returned. FACTS: The slipper sock is constructed with an outer surface of knit acrylic fabric and is lined with polyester fleece fabric. The sample submitted features a change in knit pattern for the cuff, which has a self-start edge. The sample also features a change in knit pattern for the heel portion, embroidery on the front foot representing an animal face, knit “animal ears,” which are attached to the knit outer surface of the slipper sock, and plastic gripper overlays in the form of letters and flowers on the sock bottom. You state that not all of the slipper sock styles will feature embroidery or “animal ears.” Production of the slipper sock will take place in two countries, China and either Cambodia or Bangladesh, hereafter Country B. In China, acrylic yarn is knit into a panel that has separate sections for the cuff and heel. Any embroidery or “animal ears” are attached to the knit panel then the remaining production takes place in Country B. In Country B, the following processes are performed: (1) the polyester fleece lining is cut to length and width; (2) the knit panel is sewn together with thread to create the sock; (3) the polyester fleece lining is inserted and sewn into the sock; (4) labels are attached; (5) plastic grippers are attached. ISSUE: What is the country of origin of the subject merchandise? CLASSIFICATION: The applicable subheading for the slipper sock will be 6115.96.9020, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Pantyhose, tights, stockings, socks and other hosiery, including graduated compression hosiery…and footwear without applied soles, knitted or crocheted: Other: Of synthetic fibers: Other: Other. The general rate of duty will be 14.6 percent ad valorem. 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, “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 none of the subject merchandise is wholly obtained or produced in a single country, territory or insular possession, paragraph (c)(1) of Section 102.21 cannot be applied. Paragraph (c)(2) states, “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 foreign material 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) states that “The following rules will 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 (1) If the good is not knit to shape and consists of two or more component parts, except for goods of subheading 6117.10 provided for in paragraph (e)(2) of this section, 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. (2) If the good is not knit to shape and does not consist of two or more component parts, except for goods of subheading 6117.10 provided for in paragraph (e)(2) of this section, 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, 6001 through 6006, knitted or crocheted articles of heading 9619, and subheading 6307.90, and provided that the change is the result of a fabric-making process. 3) If the good is knit to shape, except for goods of subheading 6117.10 provided for in paragraph (e)(2) of this section, a change to 6101 through 6117 from any heading outside that group, except from knitted or crocheted articles of heading 9619, provided that the knit to shape components are knit in a single country territory or insular possession. Section 102.21 (e) requires a tariff shift to headings 6101 through 6117 from any heading outside that group. In this case, the panel knit in China with the lines of demarcation is classified within that group. The finished slipper sock, completed in Country B, remains classified within that group. Thus, no classification change occurs in the Country B, therefore the tariff shift is not applicable and Section 102.21(c)(2) cannot be applied. Paragraph (c)(3) states, “Where the country of origin of a textile or apparel product cannot be determined under paragraph (c) (1) or (2) of this section: 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;” Section 102.21(b)(3) defines “knit to shape” as: 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, appliques, 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.” Section 102.21 (b)(4) defines “major parts” as: The term major parts means integral components of a good but does not include collars, cuffs, waistbands, plackets, pockets, linings, paddings, trim, accessories, or similar parts. In the case of the slipper sock, the knitted panel, which forms the entire outer surface, is the only “major part” or integral component of the item. While the polyester fleece lining is substantial, linings are excluded as “major parts.” The knitted panel contains lines of demarcation for the sock and cuff, which are clear, unambiguous and effected by a change in knit pattern and are knit directly into the fabric. In addition, the cuff portion of the knit panel has a self-start edge. Consequently, the slipper sock is considered “knit to shape” as 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, as defined above. Accordingly, Section 102.21(c)(3) is applicable to the subject merchandise. The country of origin of the slipper sock is China, the single country where the article is knit to shape. You state in your letter that the sock is not knit to shape and that the final shape of the sock is created by sewing the ends of the knit rectangular panel into a tube. You state that the fact that the heel is knit to shape does not change the fact that the tube, which is the essential shape of the finished sock product, is formed by sewing not knitting. We disagree. It is our opinion the slipper sock is knit to shape in China and therefore the country of origin is China. HOLDING: The country of origin for the slipper sock 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 Karen Sikorski at karen.sikorski@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division