CLA-2 RR:TC:TE 960473 jb
Diane Stehl
Wells Lamont
6640 West Touhy Avenue
Niles, IL 60714-4587
RE: Country of origin of knit to shape goods
Dear Ms. Stehl:
This is in response to your letters, dated May 1, 1997 and
August 8, 1997, regarding the country of origin of knit to shape
goods which will be imported into the United States.
FACTS:
In HQ 959393, dated July 1, 1997, this office addressed the
clarification of HQ 958968, dated May 3, 1996, wherein a
determination was made regarding the country of origin of knit
hats, gloves and mittens made out of acrylic or wool yarn. As
you state that you are planning to import the same merchandise
and employ the same manufacturing operations, this ruling is
based on the facts stated therein.
The manufacturing process for the subject merchandise is as
follows:
Taiwan
knitting of goods in jacquard circular machines.
Vietnam
Hats
separated piece by piece;
overlock stitched;
steam ironed;
size fitted;
a pompom is made up and attached;
inspected.
Gloves/Mittens
separated piece by piece;
finger jointed;
hand closed;
cuffs are blindlinked;
gloves/mittens turned inside out and brushed;
steamed;
inspected.
Also in Vietnam, labels are then sewn inside the hats,
gloves and mittens, J-hooks and hang tags are affixed and the
finished articles are quality controlled before being packed and
shipped to the United States.
ISSUE:
What is the country of origin of the merchandise at issue?
LAW AND ANALYSIS:
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 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withdrawn from warehouse, for consumption, on and after July 1,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 (c)(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":
6505.90 (2) If the good does not consist of two
or more components, a
change to subheading 6505.90 from any
other heading, except from heading 5007, 5111 through 5113, 5208 through 5212, 5407 through 5408,
5512 through 5516, 5602 through
5603, 5608, 5801 through 5804,
5806, 5808 through 5811, 5903, 5906 through 5907, and 6001 through 6002, and provided that the change is the result of a fabric-making process.
6101-6117 (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 knit hats are classifiable in subheading
6505.90, HTSUSA. The hats consist of the knit portion which
constitutes the body of the hats and the pom pom which is made up
and attached to the hats. General Rule (c) of Part 102.21 states
that "Subject to paragraph (d) of this section, the country of
origin of a textile or apparel product shall be determined by
sequential application of paragraphs (c) (1) through (5) of this
section and, in each case where appropriate to the specific
context, by application of the additional requirements or
conditions of 102.12 through 102.19 of this part". Section
102.13, which sets out the De Minimis rule states, in relevant
part:
(c) Foreign components or materials that do not undergo the
applicable change in tariff classification set out in
102.20 or satisfy the other applicable requirements of that section when incorporated into a good classified in
Chapter 50 through 63 of the Harmonized System shall be
disregarded in determining the country of origin of the
good if the total weight of those components or materials is not
more than 7 percent of the total weight of the good.
It is the opinion of this office that the incorporation of the
pom pom onto the hats meets the terms of the De Minimis rule.
That is to say, we assume that in the case of the subject hats,
the weight of the pom pom, in respect to the hats, is not more
than 7 percent of the total weight of the good. As such, the pom
pom is to be disregarded when determining country of origin.
The subject knit hats are classified in subheading 6505.90,
HTSUSA. Section 102.21(c)(2) is not applicable as regards the
knit hats because in referring to paragraph (e), although the
hats do not consist of two or more components, they are composed
of a fabric in a heading which is excepted by the tariff rule,
that is, heading 6002, HTSUSA. As such, the tariff shift rule is
not applicable. However, as regards the subject knit gloves and
mittens the terms of the tariff shift are met. The knit gloves
and mittens are classifiable in heading 6116, HTSUSA. As the
merchandise is knit-to-shape in a single country, the country of
origin of the subject gloves and mittens is the country in which
the knit-to-shape components are knit, that is, Taiwan.
Section 102.21(c)(3)(i) states that, "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." The subject hats are not knit to shape and thus, Section
102.21(c)(3)(i) is not applicable. Section 102.21(c)(3)(ii)
states that, "Except for goods of heading 5609, 5807, 5811, 6213,
6214, 6301 through 6306, and 6308, and subheadings 6209.20.5040,
6307.10, 6307.90, and 9404.90, if the good was not knit to shape
and the good was wholly assembled in a single country, territory,
or insular possession, the country of origin of the good is the
country, territory, or insular possession in which the good was
wholly assembled". Although the subject hats are not knit to
shape, they are not considered wholly assembled as per Section
102.21(c)(3)(ii) because the hats do not consist of two or more
components.
Section 102.21(c)(4) states that "Where 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". In the case of the subject hats, the most
important manufacturing process occurs at the time of the fabric
making, that is, in Taiwan.
HOLDING:
Accordingly, provided that you are importing the virtually
identical merchandise and manufacturing that merchandise as per
the facts indicated in this ruling, the country of origin of the
subject hats, gloves and mittens is Taiwan.
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
Commercial Rulings Division