CLA-2 RR:TC:TE 960884 jb
Victor Chiang
Mei Lai Garment Factory Limited
Avenida do Almirante Lacerda, No. 35-37
1ø 2ø 3ø 5ø andar "A-B", Edificio Wan K'ao
Macau
RE: Country of origin determination for knit pullover garment;
19 CFR 102.21(c)(4); most important assembly process
Dear Mr. Chiang:
This is in reply to your letter dated July 14, 1997,
requesting the tariff classification under the Harmonized Tariff
Schedule of the United States (HTSUS) and a country of origin
determination for a knit garment which will be imported into the
United States.
FACTS:
The submitted merchandise, referenced style number 17M609,
is a women's long sleeve knitted pullover featuring rib knit
cuffs, a rib knit waistband, a deep-V neck front covered with an
embroidered triangular shaped knitted insert, shoulder pads, and
a four button faux front opening on a placket. Each of the two
front panels is separately constructed from five strips of knit
fabric pieces, some of which are embroidered. The stitch count
of the back panel, ten fabric pieces composing the two front
panels and the fabric piece insert at the neckline, are all more
than nine stitches per two centimeters measured in the direction
in which the stitches are formed. No information was provided
regarding the fiber content or the surface breakdown of the
different fabric sections of the subject garment. The
manufacturing operations are as follows:
China
fabric is cut into component pieces
embroidery of two of the five strips which comprise one half
of the front panel embroidery of one of the five strips
which comprises the other half of the front panel
embroidery of fabric knit insert
Country X
assembly of five strips into a completed half of the front
panel
assembly of five strips into a completed second half of the
front panel
Macau
assembly and trimming of the two halves of the front panel
into one completed front panel
sewing together of the front panel, V-shape insert, rib knit
cuffs, rib at hem, back panel, two sleeves, and buttons
ironing and packing
We assume any reference to Country X does not include Israel
or a NAFTA party.
ISSUE:
1. What is the classification of the subject merchandise?
2. What is the country of origin of the subject merchandise?
LAW AND ANALYSIS:
Classification
Classification of goods under the HTSUSA is governed by the
General Rules of Interpretation (GRI's). GRI 1 provides that
classification shall be determined according to the terms of the
headings and any relative section or chapter notes. Merchandise
that cannot be classified in accordance with GRI 1 is to be
classified in accordance with subsequent GRI's taken in order.
GRI 3 states, in pertinent part:
When by application of rule 2(b) or for any other reason,
goods are, prima facie, classifiable under two or more
headings, classification shall be effected as follows:
(b) Mixtures, composite goods consisting of different
materials or made up of different components, and goods
put up in sets for retail sale, which cannot be
classified by reference to 3(a), shall be classified as
if they consisted of the material or component which
gives them their essential character, insofar as this
criterion is applicable.
Memorandum 084118, dated April 13, 1989, addressing the
essential character of garments, stated:
a. For upper or lower body garments, if one component
exceeds 60 percent of the visible surface area, that
component will determine the classification of the
garment unless the other component:
(1) forms the entire front of the garment; or
(2) provides a visual and significant decorative
effect (e.g. a substantial amount of
lace); or
(3) is over 50 percent by weight of the garment;
or
(4) is valued at more than 10 times the primary
component.
If no component comprises 60 percent of the visible surface
area, or if any of the above four listed conditions are
present, classification will be according to GRI 3(b) or
3(c), as appropriate.
As the subject garment features different fabric
compositions (i.e., panels with different stitch counts per two
centimeters) we must resort to a GRI 3(b) analysis for a
classification determination. In your submission you did not
provide us with a breakdown by surface area, weight and value of
each of the fabric sections which compose the subject pullover.
Furthermore, you did not provide us with information regarding
the fiber content of the fabrics used to make this garment.
Accordingly, for the purposes of this ruling, we will assume that
the back and sleeve panels, which are constructed with the same
knitted fabric, constitute more than 60 percent of the surface
area of the garment and impart the essential character to this
garment. We will also assume that the predominant fiber
composition of this fabric is either cotton or man-made. If
either of these assumptions are incorrect you should contact this
office with the appropriate information.
Chapter 61, HTSUS, provides for articles of apparel and
clothing accessories, knitted or crocheted. Statistical Note 3
to chapter 61, HTSUS, states:
For the purposes of this chapter, statistical provisions for
sweaters include garments, whether or not known as
pullovers, vests or cardigans, the outer surfaces of which
are constructed essentially with 9 or fewer stitches per 2
centimeters measured in the direction the stitches were
formed, and garments, known as sweaters, where, due to their
construction, the stitches on the outer surface cannot be
counted in the direction the stitches were formed.
Heading 6110, HTSUS, provides for, among other things,
sweaters, pullovers, sweatshirts, waistcoats (vests) and similar
articles, knitted or crocheted. Having determined that the
essential character of this garment is imparted by the back and
sleeve panels, each composed of a stitch count which exceeds the
nine stitches per two centimeters required by Statistical Note 3
to chapter 61, the garment is classified as an "other" pullover
in the appropriate provisions of heading 6110, HTSUS. If
predominant weight of cotton fiber, the subject garment is
classified in subheading 6110.20.2075, HTSUSA, which provides
for, sweaters, pullovers, sweatshirts, waistcoats (vests), and
similar articles, knitted or crocheted: of cotton: other: other:
women's or girls'. If predominant weight of man-made fiber, the
subject garment is classified in subheading
6110.30.3055, HTSUSA, which provides for, sweaters, pullovers,
sweatshirts, waistcoats (vests), and similar articles, knitted or
crocheted: of man-made fibers: other: other: other: other:
women's or girls'.
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, 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 (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 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":
6101-6117 If the good is not knit to shape and
consists of two or more component
parts, 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.
The subject knit garment is classifiable in heading 6110,
Harmonized Tariff Schedule of the United States (HTSUS).
Although the subject garment is not knit to shape and consists of
two or more component parts, it is not wholly assembled in a
single country, territory, or insular possession. Accordingly,
the terms of the tariff shift are not met.
Paragraph (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; or
(ii) Except for goods of heading 5609, 5807, 5811,
6213, 6214, 6301 through 6306, and 6308, and
subheadings 6209.20.5040, 6307.10, 6307.90, and 9404.90, if the
good was not knit to shape and the good was wholly
assembled in a single country, territory, or insular
possession, the country of origin of the good is the country,
territory, or insular possession in which the good was
wholly assembled.
As the subject merchandise is neither knit to shape nor
wholly assembled in a single country, territory, or insular
possession, paragraph (c)(3) is inapplicable.
Paragraph (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." In the case of the subject knit garment, the
sewing together of the two halves of the front panel into one
completed front panel, the sewing together of the completed front
panel with the V-shape insert, rib knit cuffs, back panel, rib at
hem, and sleeve panels, in Macau, constitutes the most important
assembly process. As such the country of origin of the subject
knit garment is Macau.
HOLDING:
The subject merchandise, referenced Style number 17M609, if
predominant weight of cotton fiber, is classified in subheading
6110.20.2075, HTSUSA, which provides for, sweaters, pullovers,
sweatshirts, waistcoats (vests), and similar articles, knitted or
crocheted: of cotton: other: other: women's or girls'. The
applicable rate of duty is 19.4 percent ad valorem and the quota
category is 339.
If the predominant weight is of man-made fiber, the subject
garment is classified in subheading 6110.30.3055, HTSUSA, which
provides for, sweaters, pullovers, sweatshirts, waistcoats
(vests), and similar articles, knitted or crocheted: of man-made
fibers: other: other: other: other: women's or girls'. The
applicable rate of duty is 33.5 percent ad valorem and the quota
category is 639.
The country of origin of the subject knit garment is Macau.
The designated textile and apparel category may be
subdivided into parts. If so, visa and quota requirements
applicable to the subject merchandise may be affected. Since
part categories are the result of international bilateral
agreements which are subject to frequent renegotiations and
changes, to obtain the most current information available, we
suggest that you check, close to the
time of shipment, the Status Report on Current Import Quotas
(Restraint Levels), an internal issuance of the U.S. Customs
Service, which is available for inspection at your local Customs
office.
Due to the changeable nature of the statistical annotation
(the ninth and tenth digits of the classification) and the
restraint (quota/visa) categories applicable to textile
merchandise, you should contact your local Customs office prior
to importing the merchandise to determine the current status of
any import restraints or requirements.
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 sections 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