CLA-2 RR:TC:TE 960839 jb
Saip Ereren
Terry Town
355-A W. Crowther Avenue
Placentia, CA 92870-6323
RE: Classification and country of origin determination for men's
and women's bathrobes;
GRI 2; 19 CFR Section 102.21(c)(4); most important
manufacturing operation
Dear Mr. Ereren:
This is in reply to your letter dated June 8, 1997, and
subsequent submission of July 17, 1997, requesting a
classification and country of origin determination for certain
component pieces for men's and women's bathrobes which will be
imported into the United States. Samples of the component pieces
before assembly, and the completed garments after assembly, were
submitted to this office for examination.
FACTS:
The submitted merchandise, in its imported condition,
consists of cut pieces of men's and women's bathrobes which are
bundled together, placed in a plastic bag and labeled with a bar
code identifying the style number, lot number, and number of
pieces in the bundle. All the bundled components per style
number, per size, and per dye lot are then packaged inside larger
polybags for shipment to the United States. Because of the
shading which is specific to each style, components from
different dye lots cannot be mixed. Each shipment contains
sufficient parts to construct a finished robe.
Once assembled, the garments are identified as follows:
Style 501- a women's hooded robe
Style 101- a men's kimono styled robe
Both garments are made of 100 percent cotton woven terry fabric
and feature full front openings secured by self-fabric belts and
patch pockets below the waist.
The manufacturing operations for the merchandise at issue
are as follows:
Turkey
fabric is woven
Mexico
fabric is cut into component parts and bundled into plastic
bags
United States
components are assembled into the completed robes
ISSUE:
1. What is the proper tariff classification for the subject
merchandise?
2. What is the country of origin of the submitted
merchandise?
3. What is the proper marking for the completed robes?
LAW AND ANALYSIS:
Classification
Classification of goods under the HTSUSA is governed by the
General Rules of Interpretation (GRI's). GRI 1 provides that
classification shall be determined according to the terms of the
headings and any relative section or chapter notes. Merchandise
that cannot be classified in accordance with GRI 1 is to be
classified in accordance with subsequent GRI's taken in order.
General Rule of Interpretation 2(a) states:
Any reference in a heading to an article shall be taken to
include a reference to that article incomplete or
unfinished, provided that, as entered, the incomplete or
unfinished article has the essential character of the
complete or finished article. It shall also include a
reference to that article complete or finished (or failing
to be classified as complete or finished by virtue of this
rule), entered unassembled or disassembled.
GRI 2(a) establishes a two pronged rule for classification
purposes. Thus, prior to making a classification determination
for this particular garment, the following is required as per GRI
2(a): 1) the incomplete or unfinished garment must have the
essential character of the completed or finished garment based on
some assembly operation that has been done to the garment; or 2)
a
sufficient number or type of elements should be present to
constitute a substantially complete but unassembled product at
the time of importation. If either prong is satisfied, the terms
of the note are satisfied.
With respect to the first prong, the subject merchandise can
be deemed to have the essential character of robes only if some
significant assembly operations have taken place joining some of
the components of the robes together. At the time of
importation as there are no assembly operations performed on the
different components, an essential character determination as
"robes" is not warranted.
In addressing the second prong, a determination that the
unassembled products at the time of importation have the
essential character of the complete products can be substantiated
only if a sufficient number or type of elements are present at
the time of importation. The submitted merchandise fits squarely
within the terms of the second prong. That is, at the time of
importation, as the bundles will include sufficient parts to
construct the finished robes, the merchandise has the essential
character of robes.
Heading 6207, HTSUS, provides for men's or boys' singlets
and other undershirts, underpants, briefs, nightshirts, pajamas,
bathrobes, dressing gowns and similar articles. Heading 6208,
HTSUS, provides for women's or girls' singlets and other
undershirts, slips, petticoats, briefs, panties, nightdresses,
pajamas, negligees, bathrobes, dressings gowns and similar
articles.
Accordingly, style 101, the men's kimono styled bathrobe, is
properly classified in heading 6207, HTSUS, and style 501, the
women's hooded robe, is properly classified in heading 6208,
HTSUS.
Country of Origin
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 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 no assembly operations have taken place at the time of
importation, the terms of the tariff shift are not applicable.
Paragraph (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 not knit to shape and no
assembly operations occur prior to importation, paragraph (c)(3)
is inapplicable.
Paragraph (c)(4) states that, "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, as no
assembly operations have taken place at the time of importation,
we find that the most important manufacturing process occurs at
the time of the fabric making. Accordingly, the country of
origin of the subject merchandise in its imported condition, is
the country where the fabric making occurs, that is, Turkey.
However, once the merchandise is assembled in the United
States, the country of origin of the completed robes is the
single country in which the assembly occurs, that is, the United
States.
Section 304 of the Tariff Act of 1930, as amended (19 U.S.C.
1304), provides that, unless excepted, every article of foreign
origin imported into the United States shall be marked in a
conspicuous place as legibly, indelibly, and permanently as the
nature of the article (or its container) will permit, in such a
manner as to indicate to the ultimate purchaser in the United
States the English name of the country of origin of the article.
Part 134 of the Customs Regulations implements the country of
origin marking requirements and exceptions of 19 U.S.C. 1304.
Therefore, in the case of the garment components that are
imported from Mexico, only the outermost container must be
marked as a product of Turkey (i.e., "Made in Turkey"). As the
robe components become a product of the U.S. (after assembly
operations completed in the U.S.), the finished robes are not
subject to the marking requirements. However, if goods are
determined to be articles of U.S. origin, as in the case of the
completed robes, they are not subject to the country of origin
marking requirements of 19 U.S.C. 1304. Whether articles may be
marked as "Made in the USA" is an issue under the authority of
the Federal Trade Commission (FTC). We suggest that you contact
the FTC Division of Enforcement, 6th and Pennsylvania Avenue,
N.W., Washington, D.C. 20508 on the propriety of proposed
markings indicating that articles are made in the U.S.
HOLDING:
Style 101, the men's kimono styled bathrobe, is properly
classified in heading 6207.91.1000, HTSUSA, which provides for
men's or boys' singlets and other undershirts, underpants,
briefs, nightshirts, pajamas, bathrobes, dressing gowns and
similar articles: other: of cotton: bathrobes, dressing gowns and
similar articles. The applicable rate of duty is 9.1 percent ad
valorem and the quota category is 350.
Style 501, the women's hooded robe, is properly classified
in heading 6208.91.1010, HTSUSA, which provides for women's or
girls' singlets and other undershirts, slips, petticoats, briefs,
panties, nightdresses, pajamas, negligees, bathrobes, dressings
gowns and similar articles: other: of cotton: bathrobes, dressing
gowns and similar articles: women's. The applicable rate of duty
is 8.1 percent ad valorem and the quota category is 350.
The country of origin of the subject merchandise, at the
time of importation, is the country in which the fabric formation
occurs, that is Turkey.
The country of origin of the completed robes is the United
States.
The designated textile and apparel category may be
subdivided into parts. If so, visa and quota requirements
applicable to the subject merchandise may be affected. Since
part categories are the result of international bilateral
agreements which are subject to frequent renegotiations and
changes, to obtain the most current information available, we
suggest that you check, close to the
time of shipment, the Status Report on Current Import Quotas
(Restraint Levels), an internal issuance of the U.S. Customs
Service, which is available for inspection at your local Customs
office.
Due to the changeable nature of the statistical annotation
(the ninth and tenth digits of the classification) and the
restraint (quota/visa) categories applicable to textile
merchandise, you should contact your local Customs office prior
to importing the merchandise to determine the current status of
any import restraints or requirements.
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
Commercial Rulings Division