CLA-2 RR:TC:TE 959423 jb
Donald S. Stein, Esq.
Manatt Phelps Phillips
1501 M Street, N.W., Suite 700
Washington, D.C. 20005
RE: Country of origin determination for vest; 19 CFR
102.21(c)(4); most important assembly
Dear Mr. Stein:
This is in reply to your letter dated July 2, 1996, on
behalf of your client, the Tarrant Apparel Group (dba Fashion
Resource), requesting a country of origin determination for a
vest.
A sample was submitted to this office for examination.
FACTS:
The subject merchandise consists of a vest made out of 100
percent cotton denim and features a collar, oversized armholes,
waistband, 6 metallic button front closure that extends to the
waistband, two front patch pockets with metallic button closures
at the flaps, two metallic buttons at the waistband with tabs and
two additional metallic buttons on the back panel.
The manufacturing operations, using fabric formed in Hong
Kong and China, are as follows:
Scenario I
CHINA
- cutting of the component pieces
- sewing of collar, pocket flap and back button tab;
- joining together the six pieces of the front panels,
setting front patch pocket;
- joining front yoke together with flap;
- placing inside placket;
- joining together the three pieces of the back panels and
back yoke.
HONG KONG
- joining shoulder seam and side seam;
- setting collar to garment;
- setting waistband to garment and setting back button tab;
- putting binding on the armhole.
CHINA
- putting button hole and bartack on garment;
- washing;
- cutting threads;
- inspecting;
- pressing;
- putting on buttons;
- final inspection;
- packing.
Scenario II
All of the operations are identical except that the joining
of the back panel and back yoke occurs in Hong Kong.
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apparel entered, or withdrawn from warehouse, for consumption, on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 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":
6210-6212 If the good consists of two or more
component parts, a change to an assembled
good of heading 6210 through 6212 from
unassembled components, provided that the change is the result of the good being wholly assembled in a
single country, territory or insular
possession.
Paragraph (b)(6) of section 102.21 defines the term "wholly
assembled" as:
The term "wholly assembled" when used with reference to a
good means that all components, of which there must be at
least two, preexisted in essentially the same condition as
found in the finished good and were combined to form the
finished good in a single country, territory, or insular
possession. Minor attachments and minor embellishments (for
example, appliques, beads, spangles, embroidery, buttons)
not appreciably affecting the identity of the good, and
minor subassemblies (for example, collars, cuffs, plackets,
pockets), will not affect the status of a good as "wholly
assembled" in a single country, territory, or insular
possession.
The subject merchandise is classifiable in heading 6211,
Harmonized Tariff Schedule of the United States (HTSUS). As the
subject merchandise undergoes assembly operations in both China
and Hong Kong that go beyond "minor attachments, minor
embellishments and minor subassemblies", it does not qualify as
"wholly assembled" in a single country. As such paragraph (c)(2)
is inapplicable.
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.
As the subject merchandise is not knit, and the merchandise
is not wholly assembled in a single country, Section 102.21
(c)(3) is inapplicable.
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 the case of scenario I, the joining of
the multiple pieces to form the completed front panels, sewing of
the collar, pocket flap and back button tab, setting the front
patch pocket, joining the front yoke together with the flap,
placing the inside placket and joining the multiple pieces to
form the completed back panel with the back yoke, constitutes the
most important assembly process. Accordingly, country of origin
is conferred by the single country in which those operations take
place, that is China. In scenario II, the joining of the
shoulder seam and side seam, setting of the collar to the
garment, setting the waistband to the garment and joining the
multiple pieces to form the completed back panel, constitutes the
most important assembly process.
The facts as presented in this case are to be distinguished
from several recent rulings issued by this office. 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 scenario II, the
complete assembly of the back panel in addition to the joining of
the shoulder seam and side seam, setting of the collar to the
garment, and setting the waistband to the garment, constitutes
the most important assembly process and confers origin in Hong
Kong.
In contrast, in many recent rulings, the front and back
panels were not comprised of multiple components and thus, are
distinguishable from the case at hand. For example, in HQ
958792, dated March 18, 1996, discussing the country of origin of
a men's shirt, the country of origin was conferred in Hong Kong,
the country in which most of the component pieces, including the
front and back panels, were assembled together and not where the
front panels and back panel were made. In HQ 958971, dated June
14, 1996, discussing the country of origin of men's and boys'
shirts, the country of origin was conferred in the single country
where the majority of the shirts were assembled to completion and
not where the front panels and back panel were made. In HQ
959344, dated July 18, 1996, discussing the country of origin of
men's long sleeve cotton shirts, the country of origin was
conferred in Country B, the country where the front panels and
back panels were joined at the shoulder seam combined with other
operations, and not where the front panels and back panels were
made.
HOLDING:
In scenario I the country of origin of the subject vest is
China.
In scenario II the country of origin of the subject vest is
Hong Kong.
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 sections states that a 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
Tariff Classification Appeals
Division