CLA-2 RR:TC:TE 960047 NLP
Mr. Arthur Bodek
Siegel, Mandell & Davidson, P.C.
One Astor Plaza
1515 Broadway- 43rd Floor
New York, New York 10036-8901
RE: Country of origin of a women's dress, belt and shawl;
composite good; 19 CFR 102.21; NY A85484; HQs 959341, 959342
and 559983
Dear Mr. Bodek:
This is in response to your inquiry of December 6, 1996, on
behalf of your client, Liz Claiborne, Inc., requesting a country
of origin marking determination for a women's dress, self-fabric
belt and shawl. A sample of the dress, self-fabric belt and
shawl were submitted for our review.
FACTS:
The merchandise at issue, referred to as style no. 32650612,
is an eveningwear dress constructed from 100 percent polyester
woven fabric. The garment is lined with 100 percent acetate
woven fabric. The dress is halter-style and is supported on the
body by means of a fabric strap extending from the front of the
garment and fastens with buttons behind the neck. There is a rear
combination button and zipper closure on the dress. The rear
coverage of the dress terminates at the point of closure
(approximately one foot below the top of the garment) leaving
much of the back of the wearer exposed. The dress features
piping around the neckline and armhole openings that is made from
82 percent rayon and 18 percent silk velvet fabric. The dress
also has a complementary self-fabric belt constructed of the same
velvet fabric as the piping on the dress. In addition, there is
a shawl-like wrap, the body of which is cut from the same bolt of
fabric as the piping material on the dress and the fabric of the
belt. The lining of the shawl is made of 100 percent silk
fabric. The shawl is designed to be worn around the bared
shoulder and features concave ends with matching colored tassels.
You state that the shawl is included with the dress by virtue of
the abbreviated coverage of the dress and in order to add fashion
flair. All three articles feature the identical velvet fabric
and color family.
The fabric used in producing the body of the dress is formed
in Japan; the dress lining fabric is formed in Korea. The velvet
fabric which is used in making the piping for the dress, the self
fabric belt and the body of the shawl is formed in China. The
silk lining fabric for the shawl is also formed in China. All
fabric cutting and all the assembly operations as well as any
other finishing operations necessary to produce the dress, belt,
shawl are performed in Korea.
New York Ruling Letter (NY) A85484, issued to you on July
15, 1996, dealt with the classification of the subject dress,
self-fabric belt and shawl and determined that all three articles
were considered a "composite good" in accordance with the General
Rules of Interpretation. The ruling determined that the
components were adapted to one another, were mutually
complementary and together formed a whole which would not
normally be offered for sale separately. Furthermore, NY A85484
determined that the garment imparted the essential character of
the good. Therefore, the applicable subheading for style no.
32650612 was determined to be 6204.43.4030, Harmonized Tariff
Schedule of the United States (HTSUS), which provides for women's
or girls' suits, ensembles, suit-type jackets and blazers,
dresses, skirts, divided skirts, trousers, bib and brace
overalls, breeches and shorts (other than swimwear): dresses: of
synthetic fibers: other:other: womens. The rate of duty is 16.8
percent ad valorem and the textile category code is 636. We note
that NY A85484 did not address the country of origin issue.
ISSUES:
What is the country of origin of the subject merchandise?
Whether a single country of origin marking is acceptable for
the subject dress and self-fabric belt and shawl?
LAW AND ANALYSIS:
ISSUE #1: COUNTRY OF ORIGIN FOR DUTY AND VISA/QUOTA PURPOSES
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
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:"
6201-6208 (1) 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.
Section 102.21(b)(6) defines wholly assembled as:
The term "wholly assembled" when 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 determined in NY A85484, the subject dress, self-fabric
belt and shawl are considered a "composite good" in which the
dress imparts the essential character. As such, the country of
origin of the dress will determine the origin of the composite
good and the country of origin of the accompanying self-fabric
belt and shawl are not determined separately. Accordingly, as
per the terms of Section 102.21(c)(2) and Section 102.21(e), as
the subject dress is composed of two or more component parts and
is wholly assembled in a single country, that is, Korea, the
country of origin of the subject dress, self-fabric belt and
shawl is Korea. See, Headquarters Ruling Letter (HQ) 959341,
dated July 3, 1996, wherein Customs dealt with a country of
origin determination for a women's suit with handkerchief.
Customs held that the suit and handkerchief were considered a
composite good and the country of origin of the suit determined
the origin of the composite good and the country of origin of the
handkerchief was not determined separately; See also, HQ 959342,
dated July 18, 1996, wherein Customs dealt with a country of
origin determination for a women's dress and self-fabric belt.
Customs held that the dress and belt were considered a composite
good in which the dress imparted the essential character and the
country of origin of the dress determined the origin of the
composite good and the country of origin of the accompanying belt
was not determined separately.
ISSUE #2: COUNTRY OF ORIGIN MARKING REQUIREMENTS
In HQ 559983, dated August 22, 1996, Customs dealt with a
country of origin marking determination for a dress and self-fabric belt that were also determined to be a "composite good".
The issue in that case is the same as the issue presented herein.
In HQ 559983, we first referred to HQ 959342, dated July 18,
1996, wherein Customs determined the country of origin issue for
duty and visa/quota purposes. HQ 959342 stated that the dress
and self-fabric belt were a composite good in which the dress
imparted the essential character. Therefore, the country of
origin of the dress determined the origin of the composite good.
Pursuant to a 19 CFR 102.21(c)(2) and (e) analysis, the country
of origin of the dress, and therefore the composite good, was
determined to be Country B, for duty and quota/visa purposes.
In HQ 559983, concerning the country of origin marking
requirements for the composite good, Customs stated the
following:
Since 19 CFR 102.21 implements section 334 of the Uruguay
Round Agreements Act which applies "for purposes of the
customs laws," and 19 U.S.C. 1304 [the marking statute] is a
Customs law, the country of origin of the dress and self-fabric
belt for marking purposes is Country B. Therefore, only a
single country of origin marking on
the dress will be needed for the dress and belt composite
good.
In the instant case, pursuant to a 19 CFR 102.21(c)(2) and
(e) analysis, the country of origin of the dress, self-fabric
belt and shawl, which has been determined to be a composite good,
for marking purposes is Korea. As the three articles are
considered a composite good and in accordance with our position
in HQ 559983, only a single country of origin marking on the
dress will be needed for the subject composite good.
HOLDING:
The country of origin of the dress, self-fabric belt and
shawl for duty and visa/quota purposes is Korea.
The country of origin of the dress, self-fabric belt and
shawl for marking purposes is also Korea and only a single
country of origin marking will be needed on the dress.
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 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 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.
Sincerely,
John Durant, Director
Tariff Classification Appeals
Division