CLA-2 RR:TC:TE 959424 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 a jacket; 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
jacket.
A sample was submitted to this office for examination.
FACTS:
The subject merchandise consists of a jacket made out of 100
percent cotton denim and features a collar, long sleeves with a
single button closure at the cuff bands, a 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, then topstitch;
- joining pocket flap and back button tab;
- joining together the six pieces of the front panels;
- joining three pieces of back panel together with back
yoke;
- putting pocket backing on the front panel together with
making pocket opening;
- joining front yokes with front panels;
- placing inside placket;
- joining sleeve seam and making sleeve vents.
HONG KONG
- joining shoulder seams and top stitching;
- joining sleeves to body and top stitching;
- joining side seams together with sleeve seams;
- joining collar to garment;
- joining cuffs to garment;
- joining waistband to garment;
- putting back button tab to the waistband.
CHINA
- putting key 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 together with the 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apparel entered, or withdrawn from warehouse, for consumption, on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":
6201-6208 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.
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 6201,
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". Although we recognize the importance of the
assembly operations of the multi-pieced components occurring in
China, it is our opinion that in the case of scenario I, the
joining together of the shoulder seams, sleeves to the body, side
seams together with the sleeve seams, the collar to the garment,
the cuffs to the garment, and the waistband to the garment, in
Hong Kong, outweigh the operations occurring in China and are
more important to the identity of this particular garment.
Similarly, we find that in scenario II, the joining together the
three pieces of the back panel with the back yoke, the shoulder
seams, the sleeves to the body, the side seams together with the
sleeve seams, the collar to the garment, the cuffs to the garment
and the waistband to the garment, in Hong Kong, constitutes the
most important assembly process.
The facts presented in this case are to be distinguished
from a recent ruling issued by this office. In HQ 959423, dated
September 13, 1996, discussing the country of origin of a jean
vest comprised of multiple front and back panels, country of
origin was conferred in the country in which the multiple
components of the front and back panels were assembled together.
This determination was based on the assembly required to create
the multi-pieced front and back components and the importance of
those components to that particular garment.
HOLDING:
In scenarios I and II the country of origin of the subject
jacket 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