OT:RR:CTF:FTM H308753 MJD
Ms. Elise Shibles
601 Montgomery Street
Suite 1208
San Francisco, CA 94111
Re: Country of origin of women’s denim jacket and vest set and men’s denim jacket
Dear Ms. Shibles:
This is in reference to your ruling request, dated December 18, 2019, filed on behalf of your client, Crystal Apparel Ltd., concerning the proper country of origin of a women’s denim jacket and vest set (style CAL1900008), and a men’s denim jacket (style CAL900010). Your request was forwarded by the National Commodity Specialist Division to this office for a response. Our ruling is set forth below.
FACTS:
Style CAL1900008, is a women’s two-piece garment consisting of an outer woven denim jacket and an inner knit vest. The vest can be snapped to fabric loops located in the jacket at the neck and side seams just under the armholes. The vest and jacket can be worn together or separately.
The outer denim jacket is constructed from 82% cotton, 8% polyester, 8% elasterell-p, and 2% elastane woven fabric. It has a full front opening with a right-over-left, six-snap closure; a spread collar; and long, vented sleeves with snap cuffs. The garment also features flap, chest pockets with snap closures, zippered welt pockets at the waist, and a banded bottom with adjustable snap tabs.
The inner vest is constructed from 49% polyester, 44% cotton, and 7 % spandex knit fabric. The outer surface of the garment’s fabric measures more than nine stitches per two centimeters in the direction the stitches were formed. The vest features 6 panels; two in the front; two on the side; two in the back; a pieced self-fabric hood attached at the neckline; and a center back sweat patch. Additional features include three sewn in self-fabric tabs each with a snap closure; a full front opening with a zipper closure, oversized rib-knit arm holes and a rib-knit bottom that reaches to below the waist.
The manufacturing operations for the women’s jacket and vest (style CAL1900008) are as follows:
Women’s Jacket (Style CAL1900008)
China:
Fabric is cut into components and subcomponents
Collar is assembled
Multiple subcomponents are sewn together to form the front and back panels
Chest pocket flaps are assembled and attached to the outer front panels
Chest pockets are formed and sewn to the inner front panels
Zippers are inserted and welt pockets are formed on front panels
Yolks are attached to complete the front panels
Back yolk is attached to complete the back panel
Front plackets are formed and stitched into place
Sleeve pieces are sewn together to create the sleeve vents
Macau:
Shoulder seams are sewn
Sleeves are attached
Side seams are sewn
Collar is attached to the body
Waistband is attached
China:
Fabric loops are formed and attached to neck and underarm side seams
Sleeve cuffs are attached to the sleeves
Adjustable waist tabs are assembled and sewn to the bottom band
Snaps are attached
Labels are attached
Garment is washed, ironed, packed, and inspected
Women’s Vest (Style CAL1900008)
China:
Fabric is cut into component parts
Back panels are sewn together
Zipper is attached
Ribbons are attached to back yoke and side seams of the back panel
Hood is formed
Macau:
Shoulder and side seams are sewn together
China:
Armholes are hemmed (rib knit capping is sewn on)
Hood is attached to the body
Waistband is attached to the bottom
Labels are attached; finishing is completed
Style CAL1900010 is a men’s jacket constructed from 100% cotton woven denim fabric. The unlined jacket features a full front opening secured with a left-over-right, six-button closure; button-flap chest pockets; welt pockets below the waist; and a pointed collar. The jacket also features long, vented sleeves with button cuffs, and a banded bottom with adjustable button tabs.
The manufacturing operations for the men’s jacket (style CAL1900010) are as follows:
Men’s Jacket (Style CAL1900010)
China:
Fabric is cut into components and subcomponents
Collar is assembled
Multiple subcomponents are sewn together to form the front and back panels
Pocket flaps are sewn and attached to the panels
Pockets are sewn onto the front panels
Yolks are attached to complete the front panels
Hanger loop is constructed and attached to the back yoke
Back yolk is attached to complete the back panel
Front plackets are formed and stitched into place
Sleeve pieces are sewn together to create the sleeve vents
Macau:
Shoulder seams are sewn
Sleeves are attached
Side seams are sewn
Collar is attached
Waistband is attached and hemmed
China:
Sleeve cuffs are attached
Adjustable waist tabs are assembled and sewn to bottom band
Buttonholes are created and buttons are attached
Labels are attached
Garment is bartacked, washed, ironed, packed, and inspected
ISSUE:
What is the country of origin of the subject women’s jacket and vest set, and men’s jacket?
LAW AND ANALYSIS:
Section 334 of the Uruguay Round Agreements Act (“URAA”) (codified at 19 U.S.C. § 3592), enacted on December 8, 1994, provides rules of origin for textiles and apparel products entered, or withdrawn from warehouse, for consumption on or after July 1, 1996. Section 102.21 of the Code of Federal Regulations (19 C.F.R. § 102.21), implements the URAA. The country of origin of a textile or apparel products will be determined by sequential application of paragraphs (1) through (5) of section 102.21 (19 C.F.R. § 102.21(c)(1) – (5)).
Paragraph (c)(1) of section 102.21 (19 C.F.R. § 102.21(c)(1)) states that “[t]he 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 are not wholly obtained or produced in a single country, territory, or insular possession, 19 C.F.R. § 102.21(c)(1) is inapplicable.
Paragraph (c)(2) of section 102.21 (19 C.F.R. § 102.21(c)(2)) states that “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) of section 102.21 (19 C.F.R. § 102.21(e)) states, in relevant part, that “[t]he following rules will 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
6101- 6117 (1) If the good is not knit to shape and consists of two or more component parts, except for goods of subheading 6117.10 provided for in paragraph (e)(2) of this section, 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.
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
Although the garments consist of two or more component parts, they are not wholly assembled in a single country, territory, or insular possession. Accordingly, as the terms of the tariff shift are not met, paragraph (c)(2) is inapplicable.
Paragraph (c)(3) concerns goods that are either knit to shape, or not knit to shape but wholly assembled in a single country, territory, or insular possession. This paragraph is also inapplicable since the subject garments are neither knit to shape nor wholly assembled in a single country, territory, or insular possession.
Paragraph (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.”
Women’s Jacket (Style CAL1900008) and Men’s Jacket (Style CAL1900010)
It is your position that the women’s jacket (style CAL1900008) and men’s jacket (Style CAL1900010) are products of Macau. Macau is only where the shoulder seams and side seams are sewn; and sleeves, collar, and waistband are attached (and hemmed in the case of the men’s jacket style CAL1900010) to the body of the jackets. All other assembly operations take place in China. You argue that the processes that take place in Macau are more important to the identity of the jackets than the assembly processes that take place in China.
In support of your argument, you cite to New York Ruling Letter (“NY”) G80358, dated September 5, 2000, where CBP found that the joining of the front and back panels at the shoulder, top arm seams, side seams and underarm seams, and where the collar was attached to the body of the jacket constituted the most important assembly processes for a men’s pullover jacket. You also cite to NY G80159, dated August 7, 2000, where CBP determined that the most important assembly location for a men’s pullover jacket was where the front and back panels were joined at the shoulder; where the side seams and along the sleeves were completed, and the collar was attached to the jacket. However, neither of these cases involved denim jackets like the ones at issue here. Denim jackets, unlike other jackets, are unique in that their assembly requires multiple fabric components to form the panels of the jacket and are constructed with flat-felled seams all over the body of the jackets. These processes give the jacket the distinct denim jacket or jean jacket style that consumers are familiar with.
CBP has only ruled on a few cases that involved the country of origin of denim jackets and similar garments that were assembled in more than one country. In Headquarters Ruling Letter (“HQ”) 959424, dated September 20, 2006, which you cite to, CBP determined that the country of origin for a denim jacket was where the shoulder seams were joined, sleeves were attached to body of the jacket, the side seams together with the sleeve seems were joined; and where the collar, cuffs, and waistband were attached to the garment. However, in HQ 959424, CBP distinguished HQ 959423, dated September 13, 1996, where CBP found that the joining together of the multiple front and back panels, and the yoke of the garment were amongst the most important assembly processes for a denim vest because of “the assembly required to create the multi-pieced front and back components and the importance of those components.” CBP stated the following in HQ 959423:
In the subject case, country of origin is conferred in scenario I in the country in which the multiple pieces of the front panels are joined together to form the completed front panels and where the multiple pieces of the back panels are joined together to form the completed back panels (combined with other important assembly operations as stated above). Because the front panels and back panels are actually comprised of multiple pieces, there is considerable assembly/sewing being completed before those components are sent to the next country for further processing. Thus, the extensive assembly required to create the multi-pieced front and back components of the vest and the importance of these multi-pieced components to the identity of this particular garment, in our opinion, results in the most important assembly process and confers origin in China.
In the instant case, the vast majority of both jackets is constructed in China, with the minor assembly processes that take place in Macau appearing to only be finishing operations. When the garments leave China for Macau, all the pieces of the jackets are already created, in Macau they are simply sewn and attached together. You state that the jackets in HQ 959424 are similar to the women’s jackets at issue here, but they are different. The extensive assembly operations to form the panels of the jackets in this case distinguish them from the jacket in HQ 959424. The most important assembly operations are when the left and right front panels and back panels are sewn together using flat-felled seams. Each panel is comprised of three component parts that are sewn together with flat-felled seams and then sewn to the yolk also with flat-felled seams. Therefore, the sewing of the multiple pieces of the panels is the most important to the identity of the jackets in this case, unlike the jacket in HQ 959424.
Also, the formation of the sleeves are also important to the identity of the garments in this case which are created by joining two pieces of fabric with partially flat-felled seams. In addition, the formation of the two styles of pockets, the flap pockets and welt pocket are also significant to the garment. Specifically, the insertion of the zippers into the welt pocket and the construction of the welt pockets in the women’s jacket (style CAL1900008) and the single welt pockets in the men’s jacket (style CAL1900010) require considerably more skill and time than the simple flap patch pockets. Lastly, the construction of the plackets and collars are also important to the formation of the garments. These combined processes in China constitute the most important assembly operations for the women’s jacket (style CAL1900008) and the men’s jacket (style CAL1900010).
In contrast to the production processes mentioned above that occur in China, the processes that take place in Macau are less than minimal and require less skilled work. In Macau only the shoulder seams and side arm seams are sewn; and the sleeves, collar and waistband are attached, all other operations take place in China. These processes do not lend to the identity of the jacket as much as the processes in China do. In China, the way the front panel pieces, yolks, and sleeves are formed and sewn with flat-felled seams are what imparts the identity of the garments as denim jackets and is why consumers buy these jackets as opposed to other jacket styles. When the garments leave China and go to Macau, the identity of the garment as denim jackets is clear. In addition, the skill and work required to form the pockets, zippers (regarding women’s jacket style, style CAL1900008), cuffs, and placket are more complex and integral to the identity of the jacket than the processes in Macau. Therefore, the country of origin for the women’s jacket (style CAL1900008) and men’s jacket (style CAL1900010) is China.
Women’s Vest (Style CAL1900008)
It is your position that the women’s vest (style CAL1900008) is a product of Macau. Macau is where the shoulder seams and side seams are sewn together. All other assembly operations take place in China. In support of your argument, you cite to NY J81570, dated March 12, 2003, where CBP determined that the most important assembly location for a zipper hoodie vest under a production plan described as Production Plan Three was where the front and back panels were sewn at the shoulders, the left and right-side seams were sewn, and waistband was sewn to the main body of the vest. You also cite to NY F88822, August 12, 2000, where CBP determined that the most important assembly location for a knitted pullover vest with a hood in a production plan described as Production Plan III was where the shoulder seams and side seams were sewn closed, and the collar was attached.
In examining prior CBP rulings on the country of origin of vest made in more than one country we find that sewing the side seams and/or shoulder seams alone are not the most important assembly processes. There are always additional processes along with sewing the shoulder seams and/or side seams of the vest that constitute the most important assembly processes. See NY K89427, dated September 16, 2004; NY K86877, dated June 15, 2004; NY K86334, dated June 3, 2004; NY K86537, dated June 1, 2004; NY J81570; NY J81571, dated March 11, 2003; NY I88543, dated November 22, 2002; NY I85810, dated September 12, 2002; NY F87175, dated August 23, 2000; and NY F88822. In this case, the entire assembly of the vest takes place in China, except for sewing the shoulder seams and side seams, which take place in Macau. Sewing the shoulder seams and side seams with regular seams, do not require a significant amount of skill, take a considerable amount of time, or lend to the identity of the vest, as do many of the other processes that take place China. Accordingly, we find that the most important assembly operations are where the back panels are sewn together, the zipper is attached to the garment, hood is formed and attached to the body of the vest, and where the waistband is attached to the bottom of the vest. Therefore, the country of origin of the women’s vest style (CAL1900008) is China.
HOLDING:
Based on the facts provided, pursuant to 19 C.F.R. § 102.21(c)(4), the country of origin of the women’s jacket and vest set (style CAL1900008), and men’s jacket (style CAL900010) is China.
Please note that 19 C.F.R. § 177.9(b)(1) provides that “[e]ach ruling letter is issued on the assumption that all of the information furnished in connection with the ruling request and incorporated in the ruling letter, either directly, by reference, or by implication, is accurate and complete in every material respect. The application of a ruling letter by a CBP field office to the transaction to which it is purported to relate is subject to the verification of the facts incorporated in the ruling letter, a comparison of the transaction described therein to the actual transaction, and the satisfaction of any conditions on which the ruling was based.”
A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise is entered. If the documents have been filed without a copy, this ruling should be brought to the attention of the CBP officer handling the transaction.
Sincerely,
Yuliya A. Gulis, Chief
Food, Textiles and Marking Branch