CLA-2 RR:TC:TE 959035 jb
K. M. Oh
Sam Jung Hwagong Co., Ltd.
1594-7, Bongchun-Dong, Kwanak-Ku
C.P.O. Box 2125
Seoul, Korea
RE: Country of origin determination for a baseball cap; 19 CFR
102.21(c)(2)(1); wholly assembled; 19 CFR 102.21(c)(4);
most important assembly
Dear Mr. Oh:
This is in reply to your letter dated March 14, 1996,
requesting a country of origin determination for a baseball cap
which will be imported into the United States sometime on or
after July 1, 1996. A sample was submitted to this office for
examination.
FACTS:
The submitted merchandise consists of a baseball cap
composed of either 100 percent cotton or 65 percent cotton and 35
percent polyester fabric. The manufacturing operations are as
follows:
Scenario A
Korea-
material laminated
material cut
Vietnam-
complete assembly
Scenario B
Korea-
material laminated
material cut
Vietnam-
sewing each part separately: peak, crown, sweatband
Korea-
assemble peak and crown with sweatband and plastic
adjustable back
trimming
blocking
packing
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 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withdrawn from warehouse, for consumption, on and after July 1,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, in
either Scenario A or B, 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 of
the 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":
6505.90 (1) If the good consists of
two or more components, a
change to subheading
6505.90 from any other heading, provided that the change is the result of
the good being
wholly assembled in a
single country, territory, or insular possession.
The subject baseball cap is classifiable in subheading
6505.90.2060, HTSUSA. In scenario A the merchandise is
completely assembled in Vietnam. As the classification of this
merchandise complies with the requisite tariff shift rule for
subheading 6505.90, paragraph (c)(2)(1) of Section 102.21 is
applicable to scenario A.
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.
In remaining scenario B, assembly occurs in two countries. Thus,
as the merchandise is neither knit nor wholly assembled in one
country, paragraph (c)(3) is not applicable.
Section 102.21 (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". In scenario B, assembly occurs in both
Vietnam and Korea. It is the opinion of this office that the
assembly in Vietnam, where each component is sewn separately,
that is, the peak, the crown, and the sweatband, constitutes the
most important assembly.
HOLDING:
In scenario A the country of origin of the subject baseball
cap is Vietnam.
In scenario B the country of origin of the subject baseball
cap is Vietnam.
This ruling is issued pursuant to the provisions of Part
177, Customs Regulations (19 CFR Part 177). If the specific
factual situation is not as described above, this ruling may not
be valid. In such an event, it is recommended that a new ruling
request be submitted.
Sincerely,
John Durant, Director
Tariff Classification Appeals
Division