CLA-2 RR:TC:TE 958713 CAB
Mr. Michael TSE
L and L Import & Export Pty. Ltd.
38 Glenda Street
Doncaster, Victoria 3108
Australia
RE: Classification of sweat garments and flannel shirt; Headings
6205, 6104, 6110; Country of origin determination pursuant to
Section 12.130, Customs Regulations; Section 102.21, Customs
Regulations
Dear Mr. TSE:
This is in response to your inquiry of November 13, 1995,
requesting a country of origin determination for a shirt and
track suit. Samples were submitted for examination. The country
of origin determination will be made pursuant to Section 12.130,
Customs Regulations, presently in effect, and pursuant to Section
102.21, Customs Regulation, the general rules to determine
country of origin as of July 1, 1996.
FACTS:
There are several garments at issue. One garment at issue
is a men's 100 percent woven cotton flannel shirt. The shirt
contains long sleeves, two front panels, one back panel,
plackets, and cuffs. Another garment at issue is a pair of knit
trousers with an elasticized waist, fitted ankles, and a vertical
insert of knitted print fabric extending down each leg. The
final garment at issue is a knitted pullover sweat shirt type
garment. You describe the sweat shirt and trousers as a track
suit. Both the sweat shirt and trousers are constructed of 65
percent polyester/35 percent knitted cotton fabric. You describe
the sweat shirt and pants as unisex.
The manufacturing for the pants and sweat shirt are as
follows: Fabric knit in Australia is exported to China to be cut
into garment pieces and fully assembled into finished garments;
The garments are then exported to the United States. The
manufacturing process for the flannel shirt
is as follows. Fabric woven in China is exported to Australia to
be cut into garment pieces; The garment pieces are then sent to
China for final assembly into a finished product.
ISSUE:
What is the tariff classification for the subject
merchandise?
What is the country of origin of the subject merchandise?
LAW AND ANALYSIS:
TARIFF 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.
Heading 6205, HTSUSA, provides for men's shirts. As the
instant flannel shirt is a men's garment that fits squarely
within this provision, it is classifiable under Heading 6205,
HTSUSA.
Heading 6110, HTSUSA, provides for sweaters, pullovers,
sweatshirts, waistcoats (vests) and similar articles, knitted or
crocheted. The upper body garment referred to by you as part of
a track suit is a pullover sweatshirt. The Explanatory Notes to
the Harmonized Commodity Description and Coding System (EN),
although not legally binding, are the official interpretation of
the tariff at the international level. The EN to Heading 6112,
HTSUSA, provides the description of garments classifiable as
track suits in the tariff. The EN states the following:
Track suits consists of two garments, namely:
- A garment meant to cover the upper part of the body down
to or slightly below the waist. It has long sleeves, with
ribbed or elasticated bands, zip
fasteners or other tightening
elements at the cuffs. Similar
tightening elements, including
drawstrings, are generally to be
found at the bottom of this
garment. When it has a partial or
complete opening at the front, it
is generally fastened by means of a
slide fastener (zipper). It may or
may not be fitted with a hood, a
collar and pockets.
- A second garment (a pair of trousers) which may be either
close or loose fitting, with or without pockets, with an
elasticated waistband,
drawstring or other means of
tightening at the waist, with
no opening at the waist and
therefore no buttons or other
fastening system. However,
such trousers may be fitted
with ribbed or elasticated
bands, slide fasteners
(zippers) or other tightening
elements at the bottom of the
trouser-legs which generally
go down to ankle level. They
may or may not have
footstraps.
When examining the instant pullover garment, it is clear that it
does not meet the description requirements for upper body
garments that are classifiable as track suits in the tariff.
Thus, it is classifiable under Heading 6110, HTSUSA. Heading
6104, HTSUSA, provides for inter alia, women's trousers. Despite
your contention that the sweat pants at issue are part of a track
suit, the sweat pants are in essence pants or trousers.
Therefore, the sweat pants at issue are provided for under
Heading 6104, HTSUSA. Since the sweat pants and pullover have
been constructed and designated as unisex garments, the
nomenclature dictates that where garments cannot be identified as
either men's or boys' garments or as women's or girls', they are
to be classified in the heading covering women's or girls'
garments. See, Note 9, Chapter 61, HTSUSA.
COUNTRY OF ORIGIN
Country of origin determinations for textile products are
subject to Section 12.130, Customs Regulations (19 CFR 12.130).
Section 12.130 provides that a textile product that is processed
in more than one country or territory shall be a product of that
country or territory where it last underwent a substantial
transformation. A textile product will be considered to have
undergone a substantial transformation if it has been transformed
by means of subsequent manufacturing or processing operations
into a new and different article of commerce.
Section 12.130(d), Customs Regulations, sets forth criteria
for determining whether a substantial transformation of a textile
product has taken place. This regulation states these criteria
are not exhaustive; one or any combination of criteria may be
determinative, and additional factors may be considered.
Section 12.130(d)(1), Customs Regulations, states that a new
and different article of commerce will usually result from a
manufacturing or processing operation if there is a change in:
(i) Commercial designation or identity, (ii) Fundamental
character or (iii) Commercial use.
Section 12.130(d)(2), Customs Regulations, states that for
determining whether merchandise has been subjected to substantial
manufacturing or processing operations, the following will be
considered:
(i) The physical change in the material or article;
(ii) The time involved in the manufacturing or processing
operation;
(iii) The complexity of the manufacturing or processing
operation;
(iv) The level or degree of skill and/or technology in the
manufacturing or processing operations; and
(v) The value added to the article or material.
Section 12.130(e)(1), Customs Regulations, describes
manufacturing or processing operations from which an article will
usually be considered a product of the country in which those
operations occurred. Section 12.130(e)(1)(iv), Customs
Regulations, specifically provides that the cutting of fabric
into parts and the assembly of those parts into the completed
article will be a manufacturing operation that will usually
result in an article being considered a product of the country in
which those operations occurred. Section 12.130(e)(1)(v),
Customs Regulations states that an article will be a product of a
particular foreign country, when it has undergone prior to
importation in the U.S. in that foreign country:
Substantial assembly by sewing and/or tailoring of all
cut pieces of apparel articles which have been cut from
fabric in another foreign territory or country, or insular
possession, into a completed garment (e.g., the complete
assembly of all cut pieces of suit-type jackets, suits and
shirts).
According to T.D. 85-38, the final document rule
establishing 19 CFR 12.130:
The assembly of all the cut pieces of a garment usually is a
substantial manufacturing process that results in an article
with a different name, character, or use than the cut
pieces. It should be noted that not all assembly operations
of cut garment pieces will amount to a substantial
transformation of those pieces. Where either less than a
complete assembly of all the cut pieces of a garment is
performed in one country, or the assembly is a relatively
simple one, then Customs will rule on the particular factual
situation as they arise, utilizing the criteria in Section
12.130(d).
Customs has consistently determined that cutting fabric into
garment pieces constitutes a substantial transformation of the
fabric and the clothing pieces become products of the country
where the fabric is cut. (See e.g., Headquarters Ruling Letter
(HRL) 952531, dated November 25, 1992, and HRL 089539, dated
April 22, 1992).
Customs has also long held that the mere assembly of goods
entailing simple combining operations, trimming or joining
together by sewing is not enough to substantially transform the
components of an article into a new and different article of
commerce. (See e.g., HRL 082787, dated March 9, 1989, and HRL
082747, dated February 23, 1989).
Section 12.130(e)(1)(v) provides that there must be
substantial assembly by sewing or tailoring of a suit-type
garment for substantial transformation to occur. Customs has
ruled in prior cases that garments such as the subject garment
that undergo a complex assembly process are subject to their last
substantial transformation in the country where the complex
assembly process took place. (See e.g., HRL 956797, dated
November 10, 1994, where Customs determined that the country of
origin of a flannel shirt almost identical to the subject shirt
was the country where the shirt was assembled; See also, HRL
953641, dated August 19, 1993, which addressed the country of
origin of a men's sport shirt.)
HRL 953638, dated August 19, 1993, stated the following in
pertinent part:
To determine whether origin is conferred when an
article is transformed from its numerous constituent parts
to what is eventually recognized as the completed garment,
i.e., a shirt, one must first define "substantial assembly".
Substantial assembly can be defined as that operation,
whether by sewing or tailoring, when all the components of
the garment are attached together to form that completed
shirt.
In the instant case, sewing the individual components of the
shirt together, particularly the long sleeves, collar, cuffs,
yoke and plackets, to form the completed skirt is a complex
assembly operation. This assembly process is more than the
simple assembly process cited in Section 12.130(e)(2)(i), (e.g.,
"simple combining operations..."). The assembly operation
performed in this case in accordance with Section
12.130(e)(1)(v), Customs Regulations, amounts to a substantial
assembly which confers country of origin. The country of origin
of the flannel shirt is China, the country where the shirt was
assembled.
The pants and pullover garments at issue are made of fabric
knitted in Australia. The fabric is exported to China where it
is cut into garments pieces and sewn and fully assembled into
finished garments. It has been a long held Customs position that
cutting fabric into garment pieces is a substantial manufacturing
operation that results in a substantial transformation. In this
case, the last substantial transformation occurs in the country
where the pants and pullover are cut and sewn, China.
HOLDING:
The flannel shirt is classifiable in subheading
6205.20.2050, HTSUSA, which provides for men's other cotton
shirts. The applicable rate of duty is 20.7 percent ad valorem
and the textile restraint category is 340. The pants are
classifiable in subheading 6104.63.2010, HTSUSA, which provides
for women's knitted trousers of synthetic fibers. The applicable
rate of duty is 29.6 percent ad valorem and the textile restraint
category is 648. The pullover garment is classifiable in
subheading 6110.30.3045, HTSUSA, which provides women's
sweatshirts of man-made fibers. The applicable rate of duty is
33.8 percent ad valorem and the textile restraint category is
639.
The country of origin of the pants, pullover, and flannel
shirt is China.
You should be aware that 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 textile 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 Sect. 334 (60 FR 46188). Section 334 generally
provides, with certain exceptions, that the origin of textile
goods will be the country in which they are assembled. The
subject articles are not within the products excepted from the
assembly rule. Accordingly, based on the facts stated above,
effective July 1, 1996, the country of origin of the subject
garments remains China.
Sincerely,
John Durant, Director
Tariff Classification Appeals
Division