CLA2-RR:NC:TA:357 G84045

Mr. Thomas G. Travis
Sandler, Travis & Rosenberg, P.A.
5200 Blue Lagoon Drive
Miami, FL 33126-2022

RE: Classification and country of origin determination for a women’s raincoat; 19 CFR 102.21(c)(4)

Dear Mr. Travis:

This is in reply to your letter dated November 7, 2000, on behalf of the Textile Council of Hong Kong, requesting a classification and country of origin determination for a women’s raincoat which will be imported into the United States. A sample was submitted and is being returned as you requested. The coat may be produced in China and Hong Kong and various other countries, but Israel will not be involved.

FACTS:

The subject merchandise, style VALERIE, consists of a women’s raincoat with a shell made from a woven 55% polyester/45% nylon fabric and a lining of 100% nylon woven fabric. The coat has a zip-out liner with a body composed of 80% wool/20% nylon woven fabric and sleeves of 100% polyester woven fabric. The garment features front and back capes (i.e., yokes), slant, welt pockets in the front, a full front opening with a seven-button closure, a stand collar with velveteen on the exposed surface, long sleeves with three decorative buttons at the ends, a vented back and a self-fabric tie belt. The manufacturing operations for the coat are as follows:

Sourcing

Korea:

55% polyester/45% nylon woven fabric 100% nylon woven fabric 100% polyester woven fabric

China:

80% wool/20% nylon woven fabric

Hong Kong:

Trim items are sourced: Nonwoven interlining Buttons Sewing thread Labels Zipper Shoulder pads

Production Operations

Country ‘A’:

Fabric is cut into component parts Fusing of interlining Overlocking of all panels Setting of pockets to front panels-shell Sewing of buttonholes at front facing Setting of zipper along front and neck facing for detachable liner Joining of upper front panel to lower front panels of shell Setting of facing to front panels of shell Making of back vent Joining of upper back panels to lower back panel Joining of cape to upper back panel Joining of sleeve panels of shell Joining of all lining seams Joining of all seams of detachable liner Sewing of waist belt Sewing of collar Sewing of waist belt loop

Country ‘B’:

1. Assembly of shell: Joining of front and back panels at shoulder Joining of side seams Setting of front cape to body Setting of sleeve panels to body at armholes Setting of collar to body Setting of sleeve heads and shoulder pads

Setting of lining to shell

Setting of front and back panels at neck facing Setting of front panels to front facing Setting of back body lining to back shell Setting of sleeve panels to body

Sewing of labels Sewing of buttons Thread trimming Ironing Attaching hangtags Packing Packaging

ISSUE:

What are the classification and country of origin of the subject merchandise?

CLASSIFICATION:

The applicable subheading for the raincoat will be 6202.13.4005, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for other women’s overcoats, carcoats, capes, cloaks and similar coats, of man-made fibers: raincoats. The rate of duty will be 28.4 percent ad valorem.

This coat falls within textile category designation 635. The designated textile and apparel categories and their quota and visa status are the result of international agreements that are subject to frequent renegotiations and changes. To obtain the most current information, we suggest that you check, close to the time of shipment, the U.S. Customs Service Textile Status Report, an internal issuance of the U.S. Customs Service, which is available at the Customs Web Site at WWW.CUSTOMS.GOV. In addition, the designated textile and apparel categories may be subdivided into parts. If so, visa and quota requirements applicable to the subject merchandise may be affected and should also be verified at the time of shipment.

COUNTRY OF ORIGIN - LAW AND ANALYSIS:

On December 8, 1994, the President signed into law the Uruguay Round Agreements Act. Section 334 of that Act (codified at 19 U.S.C. 3592) 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 (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 of the foreign materials 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) in pertinent part 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":

HTSUS Tariff shift and/or other requirements

If the good consists of two or more component parts, a change to an assembled good of heading 6201 through 6208 from unassembled components, provided that the change is the result of the good being wholly assembled in a single country, territory, or insular possession.

As the subject merchandise is not wholly assembled in a single country, territory, or insular possession, the terms of the tariff shift are not met.

Section 102.21(c)(3) states that, "Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1) or (2) of this section":

(i) 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; or

(ii) 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.

As the subject merchandise is neither knit, nor wholly assembled in a single country, Section 102.21 (c)(3) is inapplicable.

Section 102.21 (c)(4) states, "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 merchandise, the joining of the front and back panels at the shoulder seam and the side seam, the setting of the front cape to the body, the setting of the sleeve panels to the body at the armholes, the setting of the collar to the body, the setting of the sleeve heads and shoulder pads and the setting of the lining to the shell constitute the most important assembly processes. Accordingly, the country of origin of the raincoat is “Country ‘B’”.

HOLDING:

The country of origin of the raincoat is “Country ‘B’”. Based upon international textile trade agreements products of China, Hong Kong and various other countries are subject to quota and the requirement of a visa.

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.

This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177). 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.

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 W. Raftery at 212-637-7076.

Sincerely,

Robert B. Swierupski
Director,
National Commodity
Specialist Division