CLA-2 RR:TC:TE 960871 jb
Harold I. Loring, Esq.
Grunfeld, Desiderio, Lebowitz & Silverman LLP
245 Park Avenue, 33rd Floor
New York, NY 10167-3397
RE: Country of origin determination for woman's knitwear; 19 CFR
102.21(c)(2); knit to shape
Dear Mr. Loring:
This is in reply to your letter dated April 29, 1997, on
behalf of your client, Rose Knitting (Asia) Ltd., requesting a
country of origin determination for certain women's knitwear
which will be imported into the United States. Samples of the
garment's component pieces, before assembly, and the completed
garments, were submitted to this office for examination.
FACTS:
The subject merchandise, consists of two styles of women's
knit pullovers, referenced styles 904606A and 904606B, made of
100 percent cotton fabric. The garments feature long sleeves and
a crew neck. The fabric of the garments consist of a two by two
rib knit construction which has more than nine stitches per two
centimeters measured in the horizontal direction. The pullovers
are intended for wear on the upper part of the torso.
As per your letter, the manufacturing operations for the
subject garments are as follows:
STYLE NO. 904606A
Country A
front panel is knit with lines of demarcation at the neck
back panel is knit with lines of demarcation at the neck
You emphasize that the front and back panels as knitted are
fully contoured at the armholes, side seams, shoulders and
bottom; only the neck is in need of further cutting along the
lines of demarcation.
Country B
sleeve panels are knit to shape
neck trim is knit
front panel and back panel are cut along lines of
demarcation at the neck
all components are linked by looping
finishing operations
STYLE NO. 904606B
Country A
front panel is knit with lines of demarcation at the neck
and armholes
back panel is knit with lines of demarcation at the neck and
armholes
Country B
sleeve panels are knit with lines of demarcation at the
armholes
neck trim is knit
front panel and back panel are cut along lines of
demarcation at the neck and armholes
sleeve panels are cut at the armholes
all components are linked by looping
finishing operations
ISSUE:
What is the country of origin of the subject merchandise?
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apparel entered, or withdrawn from warehouse, for consumption, on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
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:"
6101-6117 If the good is not knit to shape and consists
of two or more component parts, a change to
an assembled good of heading 6101 through 6117
from unassembled components, provided that the change is the result of the good being wholly assembled in a
single country, territory or insular
possession.
If the good is knit to shape, a change to
heading 6101 through 6117 from any heading
outside that group, provided that the knit-to- shape components are knit in a single country, territory or
insular possession.
Section 102.21(c)(b) states:
(3) Knit to shape. The term knit to shape applies to
any good of which 50 percent or more of the
exterior surface area is formed by major parts that have been knitted or crocheted directly to the shape used
in the good, with no consideration being given to
patch pockets, appliques, or the like. Minor
cutting, trimming, or sewing of those major parts will not affect
the determination of whether a good is "knit to
shape".
(4) Major parts. The term major parts means integral
components of a good but does not include
collars, cuffs, waistbands, plackets, pockets, linings, paddings,
trim, accessories, or similar parts.
The subject merchandise is classifiable as women's knit
pullovers in heading 6110, HTSUS. You state that in the case of
Style No. 904606A the front and back panels are knit to shape,
and in the case of Style No. 904606B that the front, back and
sleeve panels are knit to shape. You conclude that as two of the
three major components (front, back or sleeve panels) in each of
the subject scenarios are knit to shape in a single country, that
country is where the most important assembly or manufacturing
process occurs. You add that although this office has in the
past issued rulings addressing what constitutes "knit to shape"
garments, those rulings never spoke to "lines of demarcation"
such as those present in the subject component pieces, and thus
should be disregarded. Specifically, you make reference to HQ
959582, dated September 9, 1996, and HQ 959484, dated October 3,
1994.
This office strongly disagrees with your claims. First, we
bring to your attention that HQ 959484 made explicit reference to
the lines of demarcation present on the front panel in both
scenarios which were addressed. Secondly, although lines of
demarcation at crucial points such as the neck and armholes have
never been discussed at length in prior country of origin rulings
since the section 102.21 rules went into effect, this does not in
any way indicate that the cutting of lines of demarcation is to
be treated any differently from the cutting of major panels
without established lines of demarcation.
You make reference to several prior Headquarter Rulings (HQ
088069, dated January 25, 1990 and HQ 089155, dated May 20, 1991)
wherein Customs determined that the lines of demarcation created
during the knitting process predetermines garment "shape" and
results in knit to shape parts. It is important to note that the
referenced rulings were decided pursuant to Section 12.130
Customs Regulations, and though in some instances they might be
helpful in the determination of current country of origin issues,
Section 102.21 is the provision that is applicable and supersedes
any rationale used in Section 12.130 contrary to the intent of
Section 102.21.
An examination of the subject component parts reveals that
for style no. 904606A, in the case of the front panel, at the
top, in a semi-circular formation, the knit fabric changes from a
two by two rib which comprises the rest of the panel, to a two by
one rib. This changed pattern serves as a line of demarcation;
that is, where the semi-circular shape is to be cut out,
resulting in a round neckline. The back panel for this style has
two very small holes at each side which seem to simulate lines of
demarcation. For style no. 904606B the lines of demarcation also
vary. The front panel features a series of small holes in a
semi-circular fashion from the top; the back panel features four
small holes (two at each side from the top), and the sleeve
panels feature the series of holes similar to the front panel.
To say that the component pieces are "contoured enough" even
prior to the cutting, evades the entire "knit to shape" and
"major parts" definitions explicitly set forth in section
102.21(c)(b) (3)(4). However, regardless of how the lines of
demarcation are fashioned, the fact remains that without
subsequent cutting operations, the garments would either lack a
neck opening or arm openings. As such, the cutting to shape of
the panel to form the neck contour or the cutting to shape at the
sleeves to form the armholes goes beyond the "minor cutting"
envisioned by section 102.21(c)(b).
Accordingly, as the subject garments are not knit to shape,
and are comprised of multiple components assembled in a single
country, the country of origin is the country where the assembly
process occurs, that is, Country B.
HOLDING:
The country of origin of the subject women's knit garments,
referenced styles 904606A and 904606B, is Country B.
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