CLA-2 RR:TC:SM 560044 DEC
Port Director
U.S. Customs Service
9 North Grand Avenue
Nogales, Arizona 85621
RE: Country of origin of T-shirt; 19 CFR 102.21(c)(3);19 U.S.C.
3592; T.D. 95-69;
19 CFR 12.130; T.D. 90-17
Dear Director:
This is in reference to your letter dated August 16, 1996,
requesting advice in connection with country of origin marking
requirements of T-shirts imported form Mexico.
FACTS:
The importer, Blackbird International, purchases blank T-shirts which are manufactured in the U.S. by Hanes and Oneita.
The importer has submitted certificates of origin from each
company. The importer ships the T-shirts to their facility in
Mexico where the shirts are silk screened with certain designs
and decorations. Once silk screened, the T-shirts are packaged
and shipped to the U.S. The imported T-shirts are classified
under subheading 6109.10.0012, HTSUS.
ISSUES:
What is the correct country of origin of the T-shirts
described above for purposes of quota, marking, and duty
purposes?
LAW AND ANALYSIS:
On September 5, 1995, Customs published in the Federal
Register (60 FR 46188)) T.D. 95-69 which set forth final
amendments to the Customs Regulations to implement the provisions
of section 334 (b) of the Uruguay Round Agreements Act ("the
Act"), Public Law 103-465, 108 Stat. 4809, hereinafter 19 U.S.C.
3592, regarding the country of origin of textile and apparel
products. These final regulations apply to goods entered, or
withdrawn from warehouse, for consumption on or after July 1,
1996. The regulatory provisions in T.D. 95-69 that implement the
basic origin principles of section 334(b) of the Act are
contained in a new section 102.21 of the Customs Regulations (19
CFR 102.21).
The final rule document setting forth rules for determining
country of origin of a good for purposes of Annex 311 of the
NAFTA was published by Customs on June 6, 1996, in the Federal
Register (61 FR 28932). Therein it was stated, in pertinent
part:
New 102.21 was modeled on the approach taken in the
interim Part 102 texts as published in T.D. 94-4 and
thus incorporates a general statement of applicability
(paragraph (a)), various definitions (paragraph (b)),
general origin rules (paragraphs (c) and (d)), and
specific tariff shift and/or other requirements
(paragraph (e)) that apply under the second general
rule. Of particular note for purposes of the present
document is the definition of "textile or apparel
product" in 102.21(b)(5) which delineates the class of
goods covered by the 102.21 rules. That definition
identifies those goods with reference to classification
in the HTSUS and refers to Chapters 50 through 63 (that
is, all of Section XI) of the HTSUS as well as to
specific headings and 6-, 8- or 10-digit subheadings of
the HTSUS that fall outside Section XI. Thus, if a
good is classifiable in an HTSUS provision listed in
102.21(b)(5), precedence must be given to the 102.21
rules over any other regulatory provision with regard
to that good, including any origin rules contained
elsewhere in part 102.
Accordingly, as the subject T-shirt is classified in heading
6109, HTSUS, a textile article identified by section
102.21(b)(5), the section 102.21 rules take precedence over any
other rules of origin to determine the appropriate country of
origin.
Section 102.21(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 was not wholly obtained or
produced in a single country, Section 102.21(c)(1) is not
applicable.
Section 102.21(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."
Section 102.21(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 (1) 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.
(2) If the good is not knit to shape and does
not consist of two or more component parts, a
change to heading 6101 through 6117 from any
heading outside that group, except from
heading 5007, 5111 through 5113, 5208 through
5212, 5309 through 5311, 5407 through 5408,
5512 through 5516, 5806, 5809 through 5811,
5903, 5906 through 5907, and 6001 through
6002, and subheading 6307.90, and provided
that the change is the result of a
fabric-making process.
(3) 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.
As none of the rules cited above apply to the situation presented
in this case, country of origin cannot be determined under 19 CFR
102.21(c)(2).
Section 102.21(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.
In this case, you indicated that the T-shirt was wholly
assembled in the U.S. Accordingly, the country of origin of the
T-shirts is the U.S. pursuant to section 102.21(c)(3)(ii).
However, there is an exception to products from the United
States that are sent abroad for processing. Pursuant to T.D. 90-17, published in the Federal Register on March 1, 1990 (55 FR
7303), Customs extended the principles of country of origin for
textiles and textile products contained in 19 CFR 12.130 to such
merchandise for all Customs purposes, including duty and marking.
Section 12.130(c)(1) states the following:
Applicability to U.S. articles sent abroad. Chapter 98,
Subchapter II, Note 2, Harmonized Tariff Schedule of
the United States, provides that any product of the
U.S. which is returned after having been advanced in
value or improved in condition abroad, or assembled
abroad, shall be a foreign article for the purposes of
the Tariff Act of 1930, as amended. In order to have a
single definition of the term "product of" and,
therefore, a single country of origin for a textile or
textile product, notwithstanding paragraph (b),
merchandise which falls within the purview of Chapter
98, Subchapter II, Note 2, Harmonized Tariff Schedule
of the United States, may not, upon its return to the
U.S., be considered a product of the U.S.
Since the silk screening of the T-shirts in Mexico
constitutes an advancement in value or improvement in condition,
the country of origin of the subject T-shirts is Mexico, for
quota, marking, and duty purposes pursuant to T.D. 90-17 and
Section 12.130(c).
HOLDING:
The country of origin of the U.S.-manufactured T-shirts that
are silk-screened in Mexico will be Mexico, for quota, marking,
and duty purposes pursuant to T.D. 90-17 and 19 CFR 12.130.
Sincerely,
John Durant, Director
Tariff Classification Appeals Division