The tariff classification of a women’s knit to shape pullover and country of origin determination; Section 102.21(c)(4) 19 Customs Federal Regulations

N307606 December 13, 2019 CLA-2-61:OT:RR:NC:N3:359 CATEGORY: Classification TARIFF NO.: 6110.20.2079 Ms. Donna L. Shira Sharretts, Paley, Carter & Blauvelt 75 Broad Street New York, NY 10004 RE: The tariff classification of a women’s knit to shape pullover and country of origin determination; Section 102.21(c)(4) 19 Customs Federal Regulations Dear Ms. Shira: In your letter dated November 12, 2019, you requested a tariff classification and a country of origin determination on behalf of your client, Ralph Lauren Corp. As requested your samples will be returned. You submitted a sample of style sample 2, LS Flag CN, a women’s pullover. In addition, samples of the component panels of the pullover were included in the submission, which include front and back panels, sleeves and the collar from which the pullover is to be assembled.Style sample 2, LS Flag CN, is constructed from 100 percent cotton knit fabric. The outer surface of the garment’s fabric measures more than nine stitches per two centimeters in the direction the stitches were formed. The pullover features a rib knit turtleneck collar, a flag insert on the front panel, long sleeves with rib knit cuffs, and a rib knit bottom that extends to below the waist. The back panel and the sleeve components of style sample 2, LS Flag CN are knit to shape during the knitting process with self-start bottoms and self-finished sides; the sleeves are contoured to shape, the armhole openings are contoured to shape; and the necklines are partially contoured to shape. The front panel does not qualify as knit to shape due to the lines of demarcation where the flag insert is to be assembled. The principal component panels of the pullover (the “major parts”), i.e. the back panel, and the sleeve panels, are considered to be knit to shape for the purpose of determining the country of origin. The manufacturing operations for the women’s knit to shape pullover are as follows: Hong Kong          The front and back panel and sleeve components are knit to shape China          The flag insert is knit to shape; the assembly of the pullover The applicable subheading for style sample 2, LS Flag CN is 6110.20.2079, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Sweaters, pullovers, sweatshirts, waistcoats (vests) and similar articles, knitted or crocheted: Of cotton: Other: Other: Other: Women’s or girls’: Other. The rate of duty is 16.5 percent ad valorem.Country of Origin Law and Analysis On December 8, 1994, the President signed into law the Uruguay Round Agreements Act. Section 334 of that Act (codified at 19 U.S.C. 3592) provides new rules of origin for textiles and apparel entered, or withdrawn from warehouse, for consumption, on and after July 1, 1996. On September 5, 1995 Customs published, Section 102.21 Federal Regulations, implementing Section 334 (60 FR 46188). Thus, effective July 1, 1996, the country of origin of a textile or apparel product shall be determined by 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 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. Section 102.21(e) states that the good must undergo a tariff shift from a heading outside of the designated grouping (i.e. headings 6101-6117). As the sweater and the component panels are all classified inside of the designated grouping, they fail to meet the tariff shift requirement and therefore, Section 102.21(c)(2) is inapplicable. Section 102.21(c)(3) states that, "Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1) or (2) of this section": (i) 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. The subject merchandise is not knit to shape in a single country and therefore, Section 102.21(c)(3) is inapplicable. Section 102.21(c)(4) states that where the country of origin of a textile or apparel product cannot be determined under paragraph (c) (1), (2) or (3) of this section, the country of origin of the good is the single country, territory, or insular possession in which the most important assembly or manufacturing process occurred. The back panel and sleeve components were knit to shape in Hong Kong and constitute more than 50 percent of the pullover’s exterior surface. 19 CFR, Section 102.21 (b)(3), noted. Although the production does not occur in a single country, the country of origin of the women’s knit to shape pullover, style sample 2, LS Flag CN is Hong Kong and therefore should be properly marked “Made in Hong Kong.” 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 the World Wide Web at https://hts.usitc.gov/current.This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).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 Renée Orsat at renee.orsat@cbp.dhs.gov. Sincerely,Steven A. Mack Director National Commodity Specialist Division