CLA-2 RR:CR:TE 962358 jb
Graham & James LLP
885 Third Avenue, 24th Floor
New York, NY 10022-4834
RE: Country of origin determination for women’s knit garments
Dear Messrs. Graham and James:
This is in reply to your letter dated August 21, 1998, requesting a country of origin determination for certain women’s knit garments which will be imported into the United States. Samples of the garment’s component pieces, before assembly, finished garments, and accompanying sketches were submitted to this office for examination.
FACTS:
The subject merchandise consists of three styles of women’s knit garments described as follows:
Style HS-702 is made of 100 percent cotton and composed of less than nine stitches per two centimeters. This garment extends from the wearer’s neck and shoulders to below the waist and features long sleeves with rib knit cuffs, a v-neckline, a rib knit fabric forming cables throughout the garment, a diamond pattern across the upper part of the front panel which is lightly beaded, and a rib knit waistband.
In its uncompleted condition, the front panel has a self-start at the rib knit bottom and the edges are finished at the sides, neckline and most of the armholes. An exception to this finished state occurs at each armhole where there is a line of demarcation consisting of a triangular-like shaped knitted area at the bottom of each armhole, measuring approximately 3-1/2 inches by 4 inches by 1 inch, which you state will be cut after the fabric panel is taken down from the knitting machine. Similar lines of demarcation are found along the top shoulder areas of the front panel, across the back panel and along the two sleeve panels.
The manufacturing operations for this style are:
Country A
front, rear and two sleeve panels are knit, including the formation of lines of demarcation
Country B
panels are cut along the lines of demarcation
assembly
edging of neck is crocheted and beading is added to front panel
Style FA-765 is made of 100 percent cotton and composed of less than nine stitches per two centimeters. This garment extends from the wearer’s neck and shoulders to below the waist and features long sleeves, a v-neckline, rib knit sleeve cuffs, a rib knit bottom and an argyle design formed by intarsia knitting on the left side of the front panel.
In its uncompleted condition, the front panel is rectangular shaped and features a self start bottom and finished edges at the sides. At each armhole and at the center of the top of this panel there are lines of demarcation consisting of small holes in the knitted fabric spaced approximately one half inch apart. At the top of the neckline the lines of demarcation form a “v-shape” and at the armholes they form “j-shaped” lines of demarcation. The fabric will be cut along these lines of demarcation to form the openings for the wearer’s neck and arms. Similar lines of demarcation formed by evenly spaced holes in recognizable patterns are found along the back panel and sleeve panels.
The manufacturing operations for this style are:
Country A
panels are knit, including the formation of lines of demarcation
Country B
panels are cut along the lines of demarcation
assembly
Style HS-718 is made of 34 percent acrylic, 33 percent rayon and 33 percent wool, and composed of more than nine stitches per two centimeter. This garment extends from the wearer’s neck and shoulders to below the waist and features long sleeves, a v-neckline, a shirt type collar, and sleeve ends and bottom of the garment which have finished or self-start ends. Throughout the jacquard double knit fabric construction there is a decorative floral pattern that is created by using a contrasting silver colored yarn against a black background.
In its uncompleted condition, the front panel has a tubular finished bottom and finished edges at the sides. At each armhole, and at the center of the top of this panel, there is a silver colored yarn acting as a line of demarcation to show the intended border of the panel. Similar lines of demarcation are found along the back panel and sleeve panels.
The manufacturing operations for this style are:
Country A
panels are knit in a rectangular shape, including the formation of lines of demarcation
Country B
panels are cut along the lines of demarcation
assembly
ISSUE:
What is the country of origin of the subject merchandise?
LAW AND ANALYSIS:
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 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.
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(b) states:
(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.
The subject merchandise is classifiable in heading 6110, HTSUS. In the case of style
HS-702 the front, back and sleeve panels exhibit self-start bottoms, the V-neckline of the front panel is knit directly to shape, and where lines of demarcation are present, they are the result of a clearly visible change in the knit pattern which is knit directly into the fabric and which have clear starting and ending points. As such, all of the panels are considered knit to shape. Similarly, for style FA-765, we note that the front, back and sleeve panels exhibit self-start bottoms, and where lines of demarcation are present, they are the result of a clearly visible change in the knit pattern which is knit directly into the fabric and which have clear starting and ending points. As such, all of the panels are considered knit to shape. In the case of style HS-718 however, we note that although the front, back and sleeve panels do exhibit self-start bottoms, the garment does not feature acceptable lines of demarcation. The lines of demarcation employed in this style are not the result of a clearly visible change in the knit pattern which is knit directly into the fabric, but the mere use of contrasting colored yarn as part of the design. As such, in the case of this last style, the panels are not considered knit to shape.
For knit to shape goods, the terms of section 102.21(c)(2) make clear that a change to heading 6101 through 6117 must occur from any heading outside that group. In the case of styles HS-702 and FA-765, before the garments are completed they consist of multiple knit components classifiable in heading 6117, HTSUS. As heading 6117, HTSUS, is excepted by section 102.21(c)(2), the tariff shift is not applicable to these styles. In the case of style HS-718 however, as we do not have a knit to shape garment, the rules indicate that the country of origin is the single country in which assembly occurs. Accordingly, the country of origin of this style
is Country B.
Paragraph (c)(3) states that, “Where the country of origin of a textile of 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;
In the case of styles HS-702 and FA-765, as all of the panels are knit to shape in Country A, featuring acceptable lines of demarcation, the country of origin of these styles is Country A.
HOLDING:
The country of origin of styles HS-702 and FA-765 is Country A, the country in which the panels are knit to shape.
The country of origin of style HS-718 is Country B, the country in which the panels are wholly assembled into the completed garment.
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 is issued on the assumption that all of the information furnished in the 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