CLA-2 RR:TC:TE 959435 CAB

Mark Zeitlin
S. Stern Custom Brokers, Inc.
One World Trade Center
Suite 3729
New York, NY 10048

RE: Country of origin determination for a reversible scarf; Section 102.21, Customs Regulations

Dear Mr. Zeitlin:

This is in response to your inquiry of July 1, 1996, requesting a country of origin ruling for a scarf on behalf of Calvin Klein Industries. The country of origin determination is pursuant to Section 102.21, Customs Regulations. A sample was submitted for examination.

FACTS:

The scarf at issue is reversible with one side made up of 100 percent woven silk material and the other side constructed of 67 percent woven cotton/33 percent rayon material. The silk fabric is woven in China while the cotton and rayon fabric is woven in Italy. The fabric is then transported to Hong Kong where it is assembled into a finished scarf.

ISSUE:

What is the country of origin for the subject scarf?

LAW AND ANALYSIS:

Pursuant to the Uruguay Round Agreements Act, new rules of origin were effective to textile products entered, or withdrawn from warehouse, for consumption on or after July 1, 1996.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 is 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 in which the good is wholly obtained or produced in a single country, territory, or insular possession. As the subject merchandise is not wholly obtained or produced in a single country, territory, or insular possession, 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.

The scarf is classifiable under Heading 6214 of the Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for, in pertinent part, scarves.

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:"

6213-6214 The country of origin of a good classifiable under heading 6213 through 6214 is the country, territory, or insular possession in which the fabric comprising the good was formed by a fabric-making process.

In this instance, the subject scarf is comprised of fabric from both Italy and China, therefore, the foreign material does not meet the requirements of Section 102.21(e). Thus, Section 102.21(c)(2) is inapplicable.

Section 102.21(c)(3) provides, the following, in pertinent part: * * *

(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 assembled.

In this instance, the subject scarf which is classifiable in Heading 6214, HTSUSA, has been wholly assembled in Hong Kong and has not been knit to shape. In accordance with Section 102.21(c)(3)(ii), goods that are classifiable in Headings 6213 and 6214, HTSUSA, are excepted from the assembly rule and thus, Section 102.21(c)(3) is inapplicable.

Section 102.21(c)(4) provides the first multi-country rule. Section 102.21(c)(4), provides the following:

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 this case, the scarf is composed of fabric woven in two separate countries. As the manufacturing of the fabrics is the most important process in the production of the scarf, a single country of origin determination cannot be made based on Section 102.21(c)(4).

Section 102.21(c)(5) states the following:

Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1), (2), (3) or (4) of this section, the country of origin of the good is the last country, territory, or insular possession in which an important assembly or manufacturing process occurred.

Thus, pursuant to Section 102.21(c)(5), the country of origin of the subject scarf is Hong Kong, as this is the last country where an important manufacturing operation occurs.

HOLDING:

Pursuant to Section 102.21(c)(5), Hong Kong is the country of origin for the subject scarf.

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 is issued on the assumption that all of the information furnished in the 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