CLA-2 RR:TC:TE 958968 jb
Dick Lin
Canonda Enterprise Co., Ltd.
6/F. No. 119, Chien Kuo N. Road
Sec. 2, Taipei
Taiwan, R.O.C.
RE: Country of Origin determination for knit hats, gloves and
mittens; fabric knit in Taiwan; 19 CFR 102.21(c)(2); tariff
shift
Dear Mr. Lin:
This letter is in response to your inquiry of February 8,
1996, requesting a clarification regarding the validity of HQ
957268, dated December 28, 1994, a country of origin
determination for certain knit hats, gloves and mittens.
FACTS:
The merchandise at issue consists of knit hats, gloves and
mittens made out of acrylic or wool yarn. The manufacturing
process is as follows:
Taiwan
- knitting of goods in jacquard circular machines.
Vietnam
Hats
- separated piece by piece;
- overlock stitched;
- steam ironed;
- size fitted;
- a pompom is made up and attached;
- inspected.
Gloves/Mittens
- separated piece by piece;
-finger jointed;
- hand closed;
- cuffs are blindlinked;
- gloves/mittens turned inside out and brushed;
- steamed;
- inspected.
Also in Vietnam, labels are then sewn inside the hats,
gloves and mittens, J-hooks and hang tags are affixed and the
finished articles are quality controlled before being packed and
shipped to the United States.
In HQ 957268, the country of origin for this merchandise was
determined to be Taiwan based on section 12.130 of the Customs
Regulations (19 CFR 12.130). Section 12.130 held that a textile
product that is processed in more than one country shall be a
product of the country where it last underwent a substantial
transformation by means of a substantial manufacturing or
processing operation into a new and different article of
commerce.
ISSUE:
What is the country of origin of the merchandise at issue?
LAW AND ANALYSIS:
On December 8, 1994, the President signed into law the
Uruguay Round Agreements Act. Section 334 of that Act 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withdrawn from warehouse, for consumption, on and after July 1,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, in the Federal Register, 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 (c)(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
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 shall apply
for purposes of determining the country of origin of a textile or
apparel product under paragraph (c)(2) of this section".
6505.90 (2) If the good does not consist of two
or more components, a
change to subheading 6505.90 from any
other heading, except from heading 5007, 5111 through 5113, 5208 through 5212, 5407 through 5408,
5512 through 5516, 5602 through
5603, 5608, 5801 through 5804,
5806, 5808 through 5811, 5903, 5906 through 5907, and 6001 through 6002, and provided that the change is the result of a fabric-making process.
6101-6117 (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 knit hats are classifiable in subheading
6505.90, HTSUSA. The hats consist of the knit portion which
constitutes the body of the hats and the pom pom which is made up
and attached to the hats. General Rule (c) of Part 102.21 states
that "Subject to paragraph (d) of this section, the country of
origin of a textile or apparel product shall be determined by
sequential application of paragraphs (c) (1) through (5) of this
section and, in each case where appropriate to the specific
context, by application of the additional requirements or
conditions of 102.12 through 102.19 of this part". Section
102.13, which sets out the De Minimis rule states, in relevant
part:
(c) Foreign components or materials that do not undergo the
applicable change in tariff classification set out in
102.20 or satisfy the other applicable requirements of that section when incorporated into a good classified in
Chapter 50 through 63 of the Harmonized System shall be
disregarded in determining the country of origin of the
good if the total weight of those components or materials is not
more than 7 percent of the total weight of the good.
It is the opinion of this office that the incorporation of the
pom pom on to the hats meets the terms of the De Minimis rule.
That is to say, we assume that in the case of the subject hats,
the weight of the pom pom, in respect to the hats, is not more
than 7 percent of the total weight of the good. As such, the pom
pom is to be disregarded when determining country of origin. As
the hats do not consist of two or more components and the change
to subheading 6505.90 is a result of a fabric making process, the
merchandise complies with the requisite tariff shift rule for
subheading 6505.90. Accordingly, the country of origin of the
hats is the country in which the fabric-making process occurs,
that is, Taiwan.
The subject knit gloves and mittens are classifiable in
heading 6116, HTSUSA. As the merchandise is knit in a single
country, the country of origin of the subject gloves and mittens
is the country in which the knit-to-shape components are knit in
a single country, that is, Taiwan.
HOLDING:
The country of origin of the subject hats, gloves and
mittens is Taiwan.
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.
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.
Sincerely,
John Durant, Director
Commercial Rulings Division