The country of origin determination of a girl’s knit pullover; Section 102.21(c)(3) Customs Regulations

N309639 February 14, 2020 CLA-2-61:OT:RR:NC:N3:358 CATEGORY: Classification TARIFF NO.: 6110.20.2079 Mr. Samuel Focarino Comet Customs Brokers, Inc. 587 West Merrick Rd. Valley Stream, NY 11580 RE: The country of origin determination of a girl’s knit pullover; Section 102.21(c)(3) Customs Regulations Dear Mr. Focarino: In your letter dated December 26, 2019 and again on February 9th, 2020 you requested a country of origin verification on behalf of your client, Charter Ventures LLC. The sample will be retained for training purposes. FACTS: You submitted a sample of style 4127/702, a girl’s knit pullover. In addition, samples of the component panels of the pullover were submitted including front and back panels with lines of demarcation, sleeve panels and neck trims from which the pullover is to be assembled. Your submission describes the manufacturing process for style 4127/702. The pullover consists of a knit fabric composed of 100% cotton. 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 turtle neck, long sleeves and a finished bottom that extends below the waist. The component panels are knit to shape in Vietnam with lines of demarcation at the neck and shoulders. The neck trims and sleeve panels are also formed in Vietnam. All components are then sent to China for linking, mending, ironing and finishing. ISSUE: What are the classification and country of origin of the subject merchandise? CLASSIFICATION: The applicable subheading for style 4127/702 will be 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: You also requested a country of origin determination. 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at 19 U.S.C. 3592), enacted on December 8, 1994, provided rules of origin for textiles and apparel entered, or withdrawn from warehouse for consumption, on and after July 1, 1996.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 CFR 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.” Since 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, “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 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 pullover of heading 6110 and the component panels of heading 6117 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. 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, 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.” 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.” See Section 102.21(b)(4), CBP Regulations. As the subject merchandise is knit to shape in a single country, viz. Vietnam, Section 102.21(c)(3) applies. HOLDING: The country of origin of the knit pullover is Vietnam. 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 C.F.R. 177.9(b)(1). This section states that a ruling letter is issued under the assumption that all of the information furnished in connection with the ruling request and incorporated in the ruling letter, either directly, by reference, or by implication, is accurate and complete in every material respect. 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). 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 C.F.R 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 Katherine Souffront at katherine.souffront@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division