MAR 05 RR:TC:SM 560178 KKV
Ms. Jacqueline A. Bonace
International Trade Division
Blair Corporation
220 Hickory Street
Warren, PA 16366-0001
RE: Country of origin marking for sweaters knit to
shape in China and assembled in Hong Kong; HQ
733323; 19 CFR 134.46
Dear Ms. Bonace:
This is in response to your letter dated November 5,
1996, which requests a binding ruling regarding the correct
country of origin marking for sweater vests knit to shape in
China and assembled in Hong Kong. A sample of the finished
sweater vest has been submitted for our consideration.
ISSUE:
What are the country of origin marking requirements for
sweater vests knit to shape in China and assembled in Hong
Kong?
FACTS:
The fiber content for the sweater vest at issue is 55%
ramie, 45% cotton. We are informed that the front and back
panels of the sweater vest are knit in China. Additionally,
embroidery is done on the front panel, ribbon is woven into
the front panel and a scallop edging is finished prior to
the exportation of the panels to Hong Kong for assembly. In
Hong Kong the shoulders and sides are joined and buttons are
sewn onto the vest, which is then packaged for shipping.
LAW AND ANALYSIS:
I. Country of Origin
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for textiles and apparel entered, or withdrawn from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, Customs Regulations (19 CFR
102.21), in the Federal Register, implementing Section 334
(60 FR 46188). Thus, effective July 1, 1996, the country of
origin for a textile or apparel product is determined by a
sequential application of the origin rules set forth in
paragraphs (c)(1) through (5) of section 102.21. As a
general rule, under the new textile origin rules, where a
textile or apparel article is assembled in one country from
components cut to shape in another country, the country of
assembly will be the origin of the article. Cutting fabric
to shape no longer confers origin.
Section 102.21(c)(1), Customs Regulations (19 CFR
102.21(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.
Section 102.21(c)(2), Customs Regulations (19 CFR
102.21(c)(2)), provides:
[w]here 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.
Section 102.21(e) 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:"
6110-6117 (3) 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 subject sweater vests are classifiable under Heading
6110, which provides for, knitted sweaters and similar
articles. The applicable tariff shift rule requires a
tariff shift to heading 6101 through 6117 from any heading
outside that group. In this case, although the goods are
knit to shape they fail to meet the applicable tariff shift
requirements as they are classifiable under Heading 6110,
HTSUS, and the sweater components are classifiable under
Heading 6117, HTSUS, which is not outside the specified
group (heading 6101-6117). Therefore, the tariff shift rule
is not met and Section 102.21(c)(2) is inapplicable.
Section 102.21(c)(3) applies where the country of origin
of a textile or apparel product cannot be determined
pursuant to paragraph (c)(1) or (c)(2) and where the
merchandise consists of either a good that was knit to shape
in a single country, or (with an exception for goods of
certain specifically enumerated headings), was wholly
assembled in a single country.
Section 102.21(c)(3)(i) provides: "[i]f 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) and (4)provides as follows:
(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, 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."
(4) Major parts. 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 at issue, the panels of the sweaters are
knit to shape and embroidered in China and transported to
Hong Kong where they are assembled into the finished sweater
vests. The subject panels make up more than 50 percent of
the exterior surface and are major parts of the finished
sweater vests. Therefore, in accordance with section
102.21(c)(3)(i), the country of origin of the sweaters is
China, the country where the goods were knit.
II. Marking Requirements
Section 304 of the Tariff Act of 1930, as amended (19
U.S.C. 1304), provides that, unless excepted, every article
of foreign origin imported into the United States shall be
marked in a conspicuous place as legibly, indelibly, and
permanently as the nature of the article (or its container)
will permit, in such a manner as to indicate to the ultimate
purchaser in the United States the English name of the
country of origin of the article. By enacting 19 U.S.C.
1304, Congress intended to ensure that the ultimate
purchaser would be able to know by inspecting the marking on
the imported goods the country of which the goods are the
product. The evident purpose is to mark the goods so that
at the time of purchase the ultimate purchaser may, by
knowing where the goods were produced, be able to buy or
refuse to buy them, if such marking should influence his
will. United States v. Friedlaender & Co., 27 C.C.P.A. 297,
302 C.A.D. 104 (1940).
Part 134, Customs Regulations (19 CFR Part 134),
implements the country of origin marking requirements and
exceptions of 19 U.S.C. 1304. One of the exceptions to the
general marking requirement is codified in 19 U.S.C.
1304(a)(3)(D) (as implemented
by 19 CFR 134.32(d)), which provides that an article may be
excepted from marking if the marking of its container will
reasonably indicate its origin to the ultimate purchaser. As
provided in section 134.41, Customs Regulations (19 CFR
134.41), the country of origin marking is considered to be
conspicuous if the ultimate purchaser in the United States
is able to find the marking easily and read it without
strain. The degree of permanence of the marking should be
at least sufficient to insure that in any reasonably
foreseeable circumstance, the marking shall remain on the
article until it reaches the ultimate purchaser unless it is
deliberately removed. The marking must survive normal
distribution and store handling.
Effective August 5, 1996, section 134.43(e), Customs
Regulations (19 CFR 134.43(e), provides, in pertinent part
that:
Where an article is produced as a result
of an assembly operation and the country
of origin of such article is determined
under this chapter to be the country in
which the article was finally assembled,
such article may be marked, as
appropriate, in a manner such as the
following:
(1) Assembled in (country of final
assembly);
(2) Assembled in (country of final
assembly) from components of
(name of country or countries of
origin of all components); or
(3) Made in, or product of, (country
of final assembly).
See 61 FR 28936 and 28957. In this case, because the
country of origin of the sweater vests has been determined
under 19 CFR 102.21 to be China, which is not the country of
final assembly, the garments may not be marked "Assembled in
Hong Kong, Knit in China."
Your letter contains six proposed country of origin
markings:
1) Knit in China
Finished in Hong Kong
2) Knitted in China
Finished in Hong Kong
3) Knit in China
Linked and Looped in Hong Kong
4) Knitted in China
Linked and Looped in Hong Kong
5) Knit in China
Linked and Stitched in Hong Kong
6) Knitted in China
Linked and Stitched in Hong Kong
In HQ 733323, dated May 2, 1990, published as C.S.D.
90-69, 24 Cust. B. & Dec. No. 23, Customs determined that,
with regard to sweaters, the phrase "Knit in" is similar in
meaning to "Made in" or "Product of" for purposes of country
of origin marking. See also, HQ 733592, dated August 22,
1990, HQ 734736, dated December 17, 1992 and HQ 558722,
dated December 19, 1994. Similarly, in HQ 733534, dated
June 7, 1990, Customs ruled that the phrase "Handknit in
China" was also acceptable country of origin marking.
Once an article has been correctly marked with the
country of origin, there is no additional marking
requirement for indicating the location of other
manufacturing steps or the origin of any components
utilized. In HQ 733323, supra, Customs indicated that
reference may be made to a second country so long as the
country of origin is clearly stated and the requirements of
section 134.46, Customs Regulations (19 CFR 134.46), are
satisfied. This regulation requires that in any case in
which the name of any country other than the country in
which the article was manufactured or produced appears on an
imported article or its container, there shall appear,
legibly and permanently, in close proximity to such name,
and in at least a comparable size, the name of the country
of origin preceded by "Made in," "Product of," or other
words of similar meaning.
As indicated above, pursuant to 19 CFR 102.21, the
country of origin of a sweater vest which is knit to shape
in China and assembled in Hong Kong is China. Applying the
general country of origin marking requirements, any
acceptable marking on the finished sweaters must clearly
indicate that China is the country of origin. Thus, the
sweater vests at issue may properly be marked "China,"
"Made in China," "Manufactured in China" or "Product of
China." Moreover, in accordance with the rulings discussed
above, Customs would also accept "Knit in China" or
"Handknit in China." The phrase "Knitted in China" and
"Knit to Shape in China" are also acceptable.
If, however, any reference is made to the processing
performed in Hong Kong, the requirements of 19 CFR 134.46
must be satisfied and the country of origin must be preceded
by "Made in", "Product of," or other words of similar
meaning. As indicated, for purposes of this provision, we
consider "Knit in," "Knitted in," "Handknit in" and "Knit
to Shape in" words of similar meaning to "Made in" or
"Product of". Thus, inasmuch as the proposed markings set
forth the correct country of origin for the subject
merchandise, each of the proposed markings is acceptable, as
the requirements of 19 U.S.C. 1304 and 19 CFR Part 134 have
been met.
HOLDING:
On the basis of the information submitted, the country
of origin of the sweater vests is China for country of
origin marking and visa purposes pursuant to 19 CFR
102.21(c)(3)(i).
With regard to country of origin marking for sweaters,
the phrases ""Knit in," "Knitted in," "Handknit in" and
"Knit to Shape in" are words of similar meaning to "Made in"
or "Product of" for purposes of 19 CFR 134.46. Therefore,
they may be used in combination with reference to the
location of other processing, e.g., "Finished in [or Linked]
[or Looped] [or Stitched]." However, pursuant to 19 CFR
134.43(e), the sweater
vests may not be marked, "Assembled in" because their
country of origin is not the country of final assembly.
A copy of this ruling letter should be attached to the
entry documents filed at the time this merchandise is
entered. If the documents have been filed without a copy,
this ruling should be brought to the attention of the
Customs officer.
Sincerely,
John Durant, Director
Tariff Classification
Appeals Division