CLA-2 RR:TC:TE 958930 SK
John M. Peterson
Arthur K. Purcell
Neville, Peterson & Williams
80 Broad Street
34th Floor
New York, N.Y. 10004
RE: Country of origin determinations; girls' knit polo-style
shirt; Section 102.21, Customs Regulations.
Dear Messrs.:
This is in response to your inquiry of February 13, 1996,
requesting a country of origin determination for a girls' knit
polo-style shirt pursuant to Section 102.21, Customs Regulations.
In your submission, you describe two different manufacturing
scenarios used to produce the subject merchandise. Samples of
the garment's constituent pieces were submitted to this office
for examination.
FACTS:
The subject merchandise consists of a girls' 100 percent
cotton knit polo-style shirt. The garment has a two-button
partial front placketed opening, short sleeves with applied
ribbed knit cuffs, flat knit collar and an embroidered flower on
one of the front panels. You have presented this office with two
different manufacturing scenarios by which the subject
merchandise will be produced. They are described as follows:
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SCENARIO 1
COUNTRY "A" OPERATIONS
1) Fabric formed;
2) Fabric cut into eleven component pieces;
3) Front panel embroidered with a flower design on left side of
the chest;
4) Front and back panels of the shirt are attached by sewing
together the shoulder seams with reinforcing shoulder tape;
5) Facing inserted in front placket and placket attached to
front;
6) Buttons and button holes sewn to front placket;
7) Rib cuffs attached to sleeves;
8) Label sewn to back panel;
COUNTRY "B" OPERATIONS
1) Left and right sleeves attached to the shirt;
2) Left and right side seams sewn;
3) Collar attached;
4) Bottom hemmed;
5) Inspected, trimmed and packaged.
***
SCENARIO 2
The same as Scenario 1 except that the collar is attached in
Country A instead of Country B.
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ISSUE:
What is the country of origin for the girls' knit polo-style
shirt in each of the two manufacturing scenarios presented?
LAW AND ANALYSIS:
Pursuant to the Uruguay Round Agreements Act, new rules of
origin will be
effective for textile or apparel products entered, or withdrawn
from warehouse for consumption, on or after July 1, 1996. These
rules were published in the Federal Register, 60 Fed. Reg. 46188
(September 5, 1995). Section 102.21, Customs
Regulations (19 CFR Section 102.21), sets forth the general rules
which determine country of origin. The country of origin of a
textile or apparel product will be determined by a hierarchy of
rules set forth in paragraphs (c)(1) through (c)(5) of Section
102.21.
Section 102.21(c)(1) sets forth the general rule for
determining the country of origin of a textile or apparel product
in which the good is wholly obtained or produced in a single
country, territory, or insular possession.
Section 102.21(c)(2) provides for instances where the
country of origin of a textile or apparel product cannot be
determined under Section 102.21(c)(1). Section 102.21 (c)(2)
provides:
"[W]here 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."
Section 102.21(c)(3) governs instances where the country of
origin of a textile or apparel product cannot be determined
pursuant to paragraphs (c)(1) or (c)(2) and where the subject
merchandise consists of either a good that was knit to shape in a
single country or, except for goods of certain specifically
enumerated headings, if the good was not knit to shape and was
wholly assembled in a single country.
Section 102.21, paragraph (6), defines "wholly assembled" as
follows:
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"[T]he term wholly assembled' when used with reference
to a good
means that all components, of which there must be at
least two, preexisted in essentially the same
condition as found in the finished good and were
combined to form the finished good in a single
country, territory, or insular possession. Minor
attachments and
minor embellishments (for example, appliques, beads,
spangles, embroidery, buttons) not appreciably
affecting the identity of the
good, and minor subassemblies (for example, collars,
cuffs, plackets, pockets), will not affect the status of
a good as wholly assembled' in
a single country, territory, or insular possession."
Section 102.21(c)(4) provides:
"[W]here 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."
Section 102.21(c)(5) provides:
"[W]here the country of origin of a textile or apparel
product
cannot be determined under paragraph (c)(1), (2), (3)
or (4)
of this section, the country of origin of the good is
the last
country, territory, or insular possession in which an
important
assembly or manufacturing process occurred."
In the manufacturing scenarios set forth above, Section
102.21(c)(1) does not provide the relevant country of origin
analysis because the subject merchandise is not
wholly obtained or produced in a single country.
The girls' cotton knit polo-style shirt is classifiable
under subheading 6106.10, Harmonized Tariff Schedule of the
United States Annotated (HTSUSA), which provides for girls'
cotton knit shirts. Accordingly, Section 102.21(c)(2) directs us
to paragraph (e) of this section which states, in pertinent part,
that origin is conferred in the following situations:
6101-6117 (1) 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
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change is the result of the good being wholly
assembled in a single country, territory, or insular
possession.
(2) If the good is not knit to shape and does not
consist of two or more component parts, a change to
heading 6101 through 6117
from any heading outside that group, except from
heading 5007,
5111 through 5113, 5208 through 5212, 5309 through
5311,
5407 through 5408, 5512 through 5516, 5806, 5809
through
5811, 5903, 5906 through 5907, and 6001 through
6002, and
subheading 6307.90, and provided that the change
is the result
of a fabric-making process.
The subject garment is not knit to shape and consists of
more than two component parts. Section 102.21(c)(2) is
inapplicable, however, because the subject garment undergoes
assembly in more than one country in both manufacturing
scenarios presented to this office. Accordingly, our
hierarchical application of Section 102.21(c) continues.
Section 102.21(c)(3) does not provide the relevant country
of origin analysis inasmuch as the subject garments are not knit
to shape goods and, as stated above, they did not undergo
assembly in a single country, territory, or insular possession.
Section 102.21(c)(4), which looks to the country, territory,
or insular possession in which the most important assembly or
manufacturing process occurred as conferring origin, does not
provide the determinative analysis in Scenario 1. In this
instance, it is not possible to determine whether the most
important assembly or manufacturing process takes place in
Country A or Country B. Accordingly, we look to Section
102.21(c)(5) which states that the country, territory, or insular
possession in which an important assembly or manufacturing
process last occurred will be the country of origin. As the
assembly operations performed in Country B transpire after those
performed in Country A, Country B is the country of origin for
the girls' shirt in Scenario 1.
In the case of Scenario 2, the most important assembly takes
place in Country A as this is where the assembly of all the
component pieces occurs except for the sewing of the side seams
and attachment of the sleeves. Therefore, pursuant to Section
102.21(c)(4), Country A confers origin to the girls' shirt in
Scenario 2.
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HOLDING:
The country of origin of the girls' shirt in Scenario 1 is
Country B pursuant to Section 102.21(c)(5).
The country of origin of the girls' shirt in Scenario 2 is
Country A pursuant to Section 102.21(c)(4).
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
Tariff Classification Appeals
Division