CLA-2 CO:R:C:T 089834 CC

Mr. R.A. Sese Abejon
R.A. Sese Abejon Customs Broker
8939 S. Sepulveda Blvd. 101
Los Angeles, CA 90045

RE: Classification and country of origin of knit upper body garments; Headings 6105, 6109, 6110; country of origin is where fabric is cut

Dear Mr. Abejon:

This letter is in response to your inquiry, on behalf of Genesis Import, requesting tariff classification and country of origin determinations for knit upper body garments. Samples of the finished merchandise, as well as samples of the cut pieces used to make the finished articles, were submitted for examination.

FACTS:

Sample number 1 is a women's short-sleeved upper body garment with a crew neck, a hemmed bottom, and decorative floral printing. It extends form the wearer's neck and shoulders to below the waist. Sample number 2 is a women's short sleeved upper body garment made of T-shirt fabric. It has a round neck and hemmed bottom and covers the wearer from the neck and shoulders to below the waist. The front of the garment has several appliques sewn on it. Sample number 3 is a men's upper body garment with a shirt-type collar and a front placket with a six button opening that extends from the neck. The garment has short sleeves with rib cuffs and a hemmed bottom. It covers the wearer's body from the neck and shoulders to below the waist. The fabric of Sample number 3 has more than 10 stitches per linear centimeter in each direction.

Each of these garments is made from 100 percent cotton knit fabric. Sample numbers 1 and 2 have more than 9 stitches per two centimeters measured in the horizontal direction.

According to your submissions, Chinese knit fabric is sent to Macau on bolts. In Macau the fabric is cut to form the garment pieces. The pieces are then sent to Haiti where they are assembled into the finished garments.

ISSUE:

How is the merchandise at issue classified under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA)?

What is the country of origin of the merchandise at issue?

LAW AND ANALYSIS:

Classification

Classification of merchandise under the HTSUSA is in accordance with the General Rules of Interpretation (GRI's), taken in order. GRI 1 provides that classification shall be determined according to the terms of the headings and any relative section or chapter notes.

Heading 6105, HTSUSA, provides for men's or boys' shirts, knitted or crocheted. According to the Explanatory Notes, the official interpretation of the HTSUSA at the international level, with the exception of nightshirts of Heading 6107 and T-shirts, singlets and other vests of Heading 6109, this heading covers knitted or crocheted shirts for men or boys, including shirts with detachable collars, dress shirts, sports shirts and leisure shirts. In addition, the Guidelines for the Reporting of Imported Products in Various Textile and Apparel Categories, CIE 13/88, November 23, 1988, state that shirts of Heading 6105 and 6106 must have a full opening or a partial opening starting at the neckline.

Heading 6109, HTSUSA, provides for T-shirts, knitted or crocheted. According to the Explanatory Notes, the term "T- shirts" means lightweight knitted or crocheted garments of the vest type, of cotton or man-made fiber, not napped, nor of pile or terry fabric, in one or more colors, with or without pockets, with long or short close-fitting sleeves, without buttons or other fastenings, without collar, without opening in the neckline, having a close-fitting or lower neckline (round, square, boat-shaped or V-shaped). These garments may have decoration, other than lace, in the form of advertising, pictures or an inscription in words, obtained by printing, knitting or other process. The bottom of these garments, usually hemmed, is never made with a ribbed waistband, drawstring or other means of tightening.

Heading 6110, HTSUSA, provides for pullovers, among other articles. According to the Explanatory Notes, this heading covers a category of knitted or crocheted articles, without distinction between male or female wear, designed to cover the upper parts of the body (jerseys, pullovers, cardigans, waistcoats and similar articles).

Sample 1 is not made of T-shirt fabric and thus is not classifiable as a T-shirt. Instead, Sample 1 is classifiable as a pullover in Heading 6110.

Sample 2 is made of T-shirt fabric, but is not classifiable as a T-shirt because of the extensive appliques. See Headquarters Ruling Letter (HRL) 087211, dated October 9, 1991, in which we discuss what features exclude an upper body garment from being classified as a T-shirt, including extensive embroidery and applique work. Therefore Sample 2 is classifiable in Heading 6110 as a pullover.

Sample 3 is an upper body garment that has a collar and a partial front opening; consequently, Sample 3 is classifiable in Heading 6105 as a men's shirt.

Country of origin

For country of origin purposes, Section 12.130 of the Customs Regulations (19 CFR 12.130) is applicable to the merchandise at issue. Section 12.130(b) of the Customs Regulations provides that a textile product that is processed in more than one country or territory shall be a product of that country or territory where it last underwent a substantial transformation. A textile product will be considered to have undergone a substantial transformation if it has been transformed by means of substantial manufacturing or processing operations into a new and different article of commerce.

Section 12.130(d) of the Customs Regulations sets forth criteria in determining whether a substantial transformation of a textile product has taken place. This regulation states that these criteria are not exhaustive; one or any combination of criteria may be determinative, and additional factors may be considered.

Section 12.130(d)(1) states that a new and different article of commerce will usually result from a manufacturing or processing operation if there is a change in:

(i) Commercial designation or identity, (ii) Fundamental character or (iii) Commercial use.

Section 12.130(d)(2) of the Customs Regulations states that in determining whether merchandise has been subjected to substantial manufacturing or processing operations, the following will be considered:

(i) The physical change in the material or article as a result of the manufacturing or processing operations in each foreign territory or country, or insular possession of the U.S.

(ii) The time involved in the manufacturing or processing operations in each foreign territory or country, or insular possession of the U.S.

(iii) The complexity of the manufacturing or processing operations in each foreign territory or country, or insular possession of the U.S.

(iv) The level or degree of skill and/or technology required in the manufacturing or processing operations in each foreign territory or country, or insular possession of the U.S.

(v) The value added to the article or material in each foreign territory or country, or insular possession of the U.S., compared to its value when imported into the U.S.

Section 12.130(e)(1) of the Customs Regulations describes manufacturing or processing operations from which an article will usually be considered a product of the country in which the processes occurred. Section 12.130(e)(1)(v) provides the following:

Substantial assembly by sewing and/or tailoring of all cut pieces of apparel articles which have been cut from fabric in another foreign territory or country, or insular possession, into a completed garment (e.g. the complete assembly and tailoring of all cut pieces of suit-type jackets, suits, and shirts).

According to T.D. 85-38 (19 Cust. Bull. 58, 70; 50 FR 8714), the final document rule establishing 19 CFR 12.130:

[T]he assembly of all the cut pieces of a garment usually is a substantial manufacturing process that results in an article with a different name, character, or use than the cut pieces. It should be noted that not all assembly operations of cut garment pieces will amount to a substantial transformation of those pieces. Where either less than a complete assembly of all the cut pieces of a garment is performed in one country, or the assembly of all cut pieces of a garment is performed in one country, or the assembly is a relatively simple one, then Customs will rule on the particular factual situations as they arise, utilizing the criteria in section 12.130(d).

The assembly of the garments at issue consists of fairly simple sewing that does not require a high degree of skill. In addition, no tailoring is required to make these garments. We believe that the assembly operations performed in Haiti are relatively simple, and, therefore, no substantial transformation occurs there. The last substantial transformation occurs in Macau, where the fabric is cut to form the garment pieces.

HOLDING:

Sample numbers 1 and 2 are classified under subheading 6110.20.2075, HTSUSA, which provides for sweaters, pullovers, sweatshirts, waistcoats (vests) and similar articles, knitted or crocheted, of cotton, other, other, other, women's or girls'. The rate of duty is 20.7 percent ad valorem, and the textile category is 339.

Sample number 3 is classified under subheading 6105.10.0010, HTSUSA, which provides for men's or boys' shirts, knitted or crocheted, of cotton, men's. The rate of duty is 21 percent ad valorem, and the textile category is 338.

The country of origin of the merchandise at issue is Macau.

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 importation of this merchandise to determine the current status of any import restraints or requirements.

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.

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 177.9(b)(1), Customs Regulations (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 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. Should it subsequently be 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, it is recommended that a new ruling request be submitted in accordance with section 177.2, Customs Regulations (19 CFR 177.2).


Sincerely,

John Durant, Director
Commercial Rulings Division