• Type : • HTSUS :
  •  Related:   960516   


CLA-2 RR:CR:TE 961981 jb

Harold Grunfeld, Esq. Grunfeld, Desiderio, Lebowitz & Silverman LLP 245 Park Avenue, 33rd Floor New York, NY 10167-3397

Dear Mr. Grunfeld:

This is in response to your letter, dated May 14, 1998, wherein you request a clarification of the term “knit to shape” as it is used in 19 C.F.R. §102.21(b)(3). More specifically, you raise issues with respect to the Congressional intent regarding the meaning of “knit to shape.”

In Headquarters Ruling Letter (HQ) 960516, dated July 14, 1998, this office determined the country of origin for a woman’s knit cardigan with a self start bottom. In the analysis of that ruling letter (copy attached for your reference) lines of demarcation, as they existed on that particular garment, were discussed. In addressing the front panel Customs stated in that ruling:

It is our view that the change in pattern which is knit directly into the fabric, is continuous, has clear starting and ending points, and serves as a clear and unambiguous line of demarcation...Where, as in the panel we are examining, either the neckline and the armholes are shaped directly during the knitting process or by clear lines of demarcation, the panel is, in our view, knit to shape.

Additionally, in discussing the back panel Customs stated:

However, inasmuch as the armholes are shaped, the fact that the neckline is not (and requires some cutting which we believe to be minor when considering the panel as a whole), will not prevent the panel itself from being considered to be knit to shape.

In essence, in viewing a knit garment panel with a self start bottom, Customs is stating that provided that either the neckline or the armholes are shaped directly during the knitting process or by way of clear, continuous, lines of demarcation, Customs will view that panel as knit to shape. 2

Although HQ 960516 does not represent an exhaustive explanation of Customs position on the term “knit to shape”, it should be viewed as a general guideline with respect to that issue. We are aware that the position expressed in HQ 960516 on lines of demarcation results in a limited number of inconsistent rulings. This office is in the process of reviewing those affected rulings and will modify or evoke those rulings as necessary pursuant to 19 U.S.C. 1625(c). Furthermore, Customs will publish an informed compliance document which will explain in a more substantive manner some of the concerns you raise in your submission such as acceptable methods for creating lines of demarcation and Customs views on “shoulder sloping.”

In the interim we would like to thank you for your views and the cooperation you have provided with respect to this matter.

Sincerely,

John Durant, Director Commercial Rulings Division