CLA-2 RR:TC:TE 959628 CAB
Mr. John F. McManus
Itochu International, Inc.
335 Madison Avenue
New York, NY 10017
RE: Country of origin of knit to shape sweaters; Section
102.21(c)(3), Customs Regulations
Dear Mr. McManus:
This is in response to your inquiry of July 2, 1996,
requesting a tariff classification ruling under the Harmonized
Tariff Schedule of the United States Annotated (HTSUSA) and a
country of origin determination pursuant to Section 102.21,
Customs Regulations, for certain women's sweaters. The tariff
classification issue was addressed in NY A85525, dated August 7,
1996, by New York Customs and Customs Headquarters will respond
to your country of origin issue in this ruling. Samples were
submitted for examination. You state that the ports of entry
will include but are not limited to New York (Newark and JFK) and
Los Angeles (Long Beach and LAX).
FACTS:
There are two women's sweaters at issue. Style 3024 is a
women's knitted, sleeveless sweater vest that contains a full-front opening with seven button closures, and a deep V-neckline.
Style 3024 also contains oversized armhole openings, scalloped
edging around the neckline, placket, and bottom. The front
panels are adorned with beading and embroidery.
Style 3026 is a women's knitted, long sleeved cardigan
sweater which contains a full-front opening with a deep V-neckline and seven button closures. The neckline, placket,
bottom and sleeve ends are finished with scalloped edging. The
front panels of the sweater are decorated with embroidery and
beading.
The fabric of each sweater has less than nine stitches per
two centimeters, measured in the horizontal direction. You state
that the fiber content of each sweater fabric, prior to the
addition of the embroidery is 55 percent ramie/45 percent cotton.
You also state that the embroidery yarns consists of 100 percent
rayon fibers.
The manufacturing process for the subject sweaters is as
follows:
CASE I
The subject garment components will be knit to shape in the
People's Republic of China (hereinafter China), where they will
also be embroidered and fully assembled. The finished garments
will be exported from Hong Kong to the United States.
CASE II
The garment components will be knit to shape and embroidered in
China, but will be assembled in Hong Kong. The finished garments
will be exported to the United States from Hong Kong.
ISSUE:
What is the country of origin of the subject sweaters?
LAW AND ANALYSIS:
Pursuant to Section 334 of the Uruguay Round Agreements Act
(codified at 19 USC Section 3592), new rules of origin were
effective for textile 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 to determine
country of origin. Thus, the country of origin of a textile
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
when the good is wholly obtained or produced in a single country,
territory, or insular possession. In Case I, garment components
are knit to shape, embroidered and fully assembled in China.
Assuming that the yarn used to make the sweaters is produced in
China, the sweaters in Case I are wholly produced in China.
Therefore, in accordance with Section 102.21(c)(1), the country
of origin for the sweaters in Case I is China. In Case II, the
sweaters are not wholly obtained or produced in a single country,
territory, or insular possession, thus, Section 102.21(c)(1) is
inapplicable.
Section 102.21(c)(2) provides for instances where the
country of origin of a textile or apparel product cannot be
determined under paragraph (c)(1) of this section. Section
102.21(c)(2) states:
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.
Section 102.21(e) states "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:"
6110-6117 (3) 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.
The subject sweaters are classifiable under Heading 6110,
which provides for, knitted sweaters and similar articles. The
applicable tariff shift rule requires a tariff shift to heading
6101 through 6117 from any heading outside that group. In this
case, the goods are knit to shape
however, they fail to meet the applicable tariff shift
requirements as they are classifiable under Heading 6110, HTSUSA,
and the sweater components are classifiable under Heading 6117,
HTSUSA, which is not outside the specified group (heading 6101-6117). Therefore, the tariff shift rule is not met and Section
102.21(c)(2) is inapplicable.
Section 102.21(c)(3) applies where the country of origin of
a textile or apparel product cannot be determined pursuant to
paragraph (c)(1) or (c)(2) and where the merchandise consists of
either a good that was knit to shape in a single country, or
(with an exception for goods of certain specifically enumerated
headings), was wholly assembled in a single country.
Section 102.21(c)(3)(i) provides the following:
If the good was knit to shape, the country or origin of
the good is the single country, territory, or insular
possession in which the good was knit;....
Section 102.21(c)(b) states the following:
(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.
In Case II, the sweater panels are knit to shape and
embroidered in China and transported to Hong Kong where they are
assembled into the finished sweaters. The subject sweater panels
make up more than 50 percent of the exterior surface and are
major parts of the finished sweaters. Therefore, in accordance
with Section 102.21(c)(3)(i), the country of origin of the
sweaters in Case II is China, the country where the goods were
knit.
HOLDING:
The country of origin of the sweaters in Case I is China
pursuant to Section 102.21(c)(1). The country of origin of the
sweaters in Case II is China pursuant to Section 102.21(c)(3).
In your submission, you state that Customs officials
erroneously disregarded the rayon embroidery when determining the
proper tariff classification for the subject garments.
Statistical Note 2, Section XI of the Harmonized Tariff Schedule
of the United States Annotated (HTSUSA), which defines the
various fiber restraints and their application states the
following, in relevant part: "For the application of this note,
where appropriate, only the part of the product which determines
the classification under general interpretive rule 3 shall be
taken in account." Therefore, the subject sweaters were properly
classified in subheadings 6110.90.9040 and 6110.90.9042, HTSUSA,
in NY A85525.
Based on quotas notified under the Agreement on Textiles and
Clothing, certain silk blends and non-cotton vegetable fiber
sweaters assembled in Hong Kong from knit to shape component
parts knitted elsewhere currently require a visa from Hong Kong.
Accordingly, in Case I, a visa from China is required and in Case
II, a visa from Hong Kong is required.
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, 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