CLA-2-65:OT:RR:NC:N3:358
Mr. Allan H. Charney
Style Fashion Vietnam Co., Ltd.
3251 Honeywood Lane
Minnetonka, MN 55305
RE: The country of origin determination of a knit hat; Section 102.21(c)(4) Customs Regulations
Dear Mr. Charney:
In your letter dated January 22, 2020, you requested a country of origin verification. The samples submitted previously under ruling request N307637 will be retained for training purposes.
FACTS:
Style CSBVN-1000 is a beanie-style knit hat that was previously submitted under ruling letter N307637. The ruling letter results were based on the facts presented at the time. It should be noted that in this ruling request, the afformentioned style CSBVN-1000, subject of N307637, will retain the same identification. This submission reflects a change in the production origin of the fabric, based on information submitted in your letter to this office dated January 22, 2020.
In your letter you indicate the hat will be constructed of knit fabric composed of 100 percent acrylic yarns. You describe the manufacturing process for style CSBVN-1000. The beanie-style hat consists of a tubular knit fabric produced in Vietnam and sewing thread which may be manufactured in Vietnam or China. A sample of the tubular knit fabric and thread (in black) was submitted to this office. The knit fabric is cut, sewn and shaped into the final product in Vietnam. A sample of the completed article (in black) was also provided.
ISSUE:
What are the classification and country of origin of the subject merchandise?
CLASSIFICATION:
The applicable subheading for style CSBVN-1000 will be 6505.00.6090, Harmonized Tariff Schedule of the United States (HTSUS), which provides for "Hats and other headgear, knitted or crocheted, or made up from lace, felt or other textile fabric... Other: Other: Of man-made fibers: Knitted or crocheted or made up from knitted or crocheted fabric: Not in part of braid… Other: Other: Other." The rate of duty will be 20 cents per kilogram plus 7 percent ad valorem.
COUNTRY OF ORIGIN:
You also requested a country of origin determination. 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at 19 U.S.C. 3592), enacted on December 8, 1994, provided rules of origin for textiles and apparel entered, or withdrawn from warehouse for consumption, on and after July 1, 1996.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 CFR 102.21), published September 5, 1995 in the Federal Register, 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 accordingly, Section 102.21 was amended (68 Fed. Reg. 8711). Thus, 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.” Since 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, “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:
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
6505.00 (4) For any other good, if the good does not consist of two or more components, a change to goods of subheading 6505.00, other than hair-nets, from any other heading, except from heading 5007, 5111 through 5113, 5208 through 5212, 5407 through 5408, 5512 through 5516, 5602 through 5603, 5609, 5801 through 5804, 5806, 5808 through 5811, 5903, 5906 through 5907, and 6001 through 6006, and provided that the change is the result of a fabric-making process.
The term “fabric-making process” is defined in paragraph (b)(2) of Section 102.21 as:
… any manufacturing operation that begins with polymers, fibers, filaments (including
strips), yarn, twine, cordage, rope, or fabric strips and results in a textile fabric.
Section 102.21(e) states that merchandise classifiable under 6505.00 composed of fabric of headings 6001 through 6002 is excepted from the tariff shift rule. Accordingly, as the hat does not meet tariff shift requirements, Section 102.21(c)(2) is inapplicable.
Section 102.21(c)(3) states:
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.
The term “wholly assembled” is defined in paragraph (b)(6) of Section 102.21 as:
… 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.
As the subject merchandise is not knit to shape and there is only one component, 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 style CSBVN-1000, the fabric making process constitutes the most important assembly or manufacturing process. Accordingly, the country of origin of the hat is Vietnam.
HOLDING:
The country of origin of the beanie-style knit hat is Vietnam.
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 C.F.R 177.9(b)(1). This section states that ruling letter is issued under the assumption that all of the information furnished in connection with the ruling request and in.corporated in the a ruling letter, either directly, by reference, or by implication, is accurate and complete in every material respect.
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). Should it be subsequently determined that the information furnished is not complete and does not comply with 19 C.F.R 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 C.F.R 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 Katherine Souffront at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division