CLA-2-61:OT:RR:NC:N3:356
Ms. Elise Shibles
Sandler, Travis & Rosenberg, P.A.
601 Montgomery Street, Suite 1208
San Francisco, CA 94111
RE: The tariff classification and country of origin of men’s knit trousers and shorts; 19 CFR 102.21(c)(3)
Dear Ms. Shibles:
In your letter dated August 27, 2019, on behalf of your client, Crystal Apparel Ltd., you requested a ruling on the country of origin of men’s trousers and shorts. Our response was delayed due to laboratory testing. As requested, your samples will be returned.
Style IN018044SB is a pair of men’s trousers constucted from 64 percent cotton, 30 percent polyamide, and 6 percent knit fabric. Style IN018044SB features a flat waistband with a left-over-right, one-button closure and five belt loops, a fly front opening with a zippered closure, two front inset pockets, a watch pocket within the right inset pocket, two rear patch pockets, and hemmed, rib knit leg openings.
The manufacturing operations for Style IN018044SB are as follows:
China:
the fabric of the leg panels is knit on a circular knitting machine with a self-start rib knit bottom, and lines of demarcation that CBP laboratory analysis has confirmed are the result of a change in knit pattern
the leg panels are cut from the fabric along the lines of demarcation
the pockets and zipper plackets are cut from the fabric
the waistband is knit on a circular knitting machine
the belt loop fabric is knit on a circular knitting machine
the pockets are sewn to the leg panels
Macau:
the zipper is attached
the front rise, back rise, and inseam are sewn
China:
the waistband is attached
the belt loops are cut to length and attached
the button hole is created and the button and rivets are attached
the upper portions of the faux side seams are topstitched
labels are attached
the garment is bartacked, washed, ironed, inspected, and packed
Style IN018041SB is a pair of men’s pull-on shorts constructed from 61 percent cotton, 32 percent polyamide, and 7 percent spandex knit fabric. Style IN018041SB does not cover the knee. The garment features a flat waistband, a vertical welt pocket at the side of each front panel, a patch pocket on the right rear panel, and hemmed leg openings.
The manufacturing operations for Style IN018041SB are as follows:
China:
the fabric of the leg panels is knit on a circular knitting machine with a self-start bottom, and lines of demarcation that CBP laboratory analysis has confirmed are the result of a change in knit pattern
the leg panels are cut along the lines of demarcation
the pockets and welts are also cut from the fabric
the waistband is knit on a circular knitting machine
the front pocket holes are created
the pockets and welts are attached to the leg panels
Macau:
the front rise, back rise, and inseam are sewn
China:
the waistband is attached
the upper portion of the faux side seams are topstitched
labels are attached
the garment is bartacked, washed, ironed, inspected, and packed
CLASSIFICATION:
The applicable subheading for Style IN018044SB will be 6103.42.1020, Harmonized Tariff Schedule of the United States (HTSUS), which provides for: Men’s or boys’… trousers,… breeches and shorts (other than swimwear), knitted or crocheted: Of cotton: Trousers, breeches and shorts: Trousers and breeches: Men’s. The rate of duty will be 16.1 percent ad valorem.
The applicable subheading for Style IN018041SB will be 6103.42.1050, HTSUS, which provides for: Men’s or boys’… trousers,… breeches and shorts (other than swimwear), knitted or crocheted: Of cotton: Trousers, breeches and shorts: Shorts: Men’s. The rate of duty will be 16.1 percent ad valorem.
COUNTRY OF ORIGIN – LAW AND ANALYSIS:
Section 334 of the Uruguay Round Agreements Act (codified at 19 U.S.C. 3592), enacted on December 8, 1994, provided rules of origin for textiles and apparel entered, or withdrawn from warehouse for consumption, on and after July 1, 1996. Section 102.21, Customs Regulations (19 C.F.R. 102.21), published in the Federal Register on September 5, 1995, implements Section 334 (60 FR 46188). Section 334 of the URAA was amended by section 405 of the Trade and Development Act of 2000, enacted on May 18, 2000, and section 102.21 was amended accordingly (68 Fed. Reg. 8711).
Section 102.21(b)(3) defines “knit to shape” for the purposes of this section as follows: “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.’”
The country of origin of a textile or apparel product shall be determined by the sequential application of the general rules set forth in paragraphs (c)(1) through (5) of Section 102.21.
Paragraph (c)(1) states: "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 neither of the subject garments is wholly obtained or produced in a single country, territory or insular possession, paragraph (c)(1) is inapplicable.
Paragraph (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." Paragraph (e) states, in pertinent part: "The following rules will apply for purposes of determining the country of origin of a textile or apparel product under paragraph (c)(2) of this section:
HTSUS Tariff shift and/or other requirements
6101 – 6117 (3) If the good is knit to shape… a change to an assembled good of 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.”
For each of the subject garments, both the finished garment and its components are classified within the above-noted tariff range. Therefore, paragraph (c)(2) is inapplicable.
Paragraph (c)(3) states, in pertinent part: “Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1) or (c)(2) of this section: (1) 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.”
Each of the subject garments is knit to shape as that term is defined in Section 102.21(b)(3), and each is knit in a single country, i.e., China. Therefore, Section 102.21(c)(3) applies.
HOLDING:
Based on the information provided, the country of origin of Styles IN018044SB and IN018041SB is China.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheadings 6103.42.1020 and 6103.42.1050, HTSUS, unless specifically excluded, are subject to an additional 7.5 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.15, in addition to subheadings 6103.42.1020 and 6103.42.1050, HTSUS, listed above.
The HTSUS is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading. For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, you may refer to the relevant parts of the USTR and CBP websites, which are available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/trade/remedies/301-certain-products-china, respectively.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the World Wide Web at https://hts.usitc.gov/current.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Maryalice Nowak at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division