CLA-2 RR:TC:TE 959484 NLP
Ms. Diane L. Weinberg
Sandler, Travis & Rosenberg
505 Park Avenue
New York, New York 10022-1106
RE: Country of origin determination for a women's knit cardigan;
knit-to-shape good; 19 CFR 102.21(c)(3); 102.21(b)(3) and (4)
Dear Ms. Weinberg:
This is in response to your letter of July 15, 1996, on
behalf of your client, Peninsula Knitters Ltd., requesting a
country of origin determination for a women's sweater pursuant to
Section 102.21, Customs Regulations. Samples of the sweater's
components and the finished sweater were submitted for our
examination and will be returned to you under separate cover.
FACTS:
The article at issue is a women's 100 percent merino wool
knitted cardigan sweater. Two manufacturing scenarios were
presented and they are as follows:
Scenario #1
Country A
All pieces are knit: front panel, rib back panel, rib sleeve
panels, rib neck and waistband
Country B
Zipper is formed
Armholes and neck are shaped by cutting the front panel
Front panel is cut along the line of demarcation to form two
front panels
Components are linked into a finished sweater
Scenario #2
Country A
Rib back panel, rib sleeve panels, rib neck and the
waistband are knit
Country B
Zipper is formed
Front panel is knit with line of demarcation
Armholes and neck are shaped by cutting the front panel
Front panel is cut along the line of demarcation to form two
front panels
Components are linked into a finished sweater
ISSUE:
What is the country of origin of the subject sweater?
LAW AND ANALYSIS:
Pursuant to Section 334 of the Uruguay Round Agreements Act
(codified at 19 USC 3592), new rules of origin were effective on
textile products entered, or withdrawn from warehouse, for
consumption on or after July 1, 1996. These rules were published
in the Federal Register, 60 Fed. Reg. 46188 (September 5, 1995).
Section 102.21, Customs Regulations (19 CFR Section 102.21), sets
forth the general rules to determine country of origin. Thus,
the country of origin of a textile product will be determined by
a hierarchy of rules set forth in paragraphs (c)(1) through
(c)(5) of Section 102.21.
Section 102.21(c)(1) sets forth the general rule for
determining the country of origin of a textile or apparel product
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, Section
102.21(c)(1) is inapplicable.
Section 102.21(c)(2) provides for instances where the
country of origin of a textile or apparel product cannot be
determined under Section 102.21(c)(1). Section 102.21(c)(2)
provides, in pertinent part:
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) provides, in pertinent part:
6101-6117 (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.
Pursuant to 102.21(b)(3), the term "Knit to shape" is
defined as follows:
The term knit to shape applies to any good of which 50
percent or more of the exterior surface area is formed by
major parts that have been knitted or crocheted to the
shape used in the good, with no consideration being given to
patch pockets, appliques, or the like. Minor cutting,
trimming or sewing of those major parts will not affect
the determination of whether a good is "knit to shape."
Section 102.21(b)(4) defines the term "major parts" as
follows:
The term major parts means integral components of a
good but does not include collars, cuffs, waistbands,
plackets, pockets, linings, paddings, trim, accessories, or similar parts.
The subject merchandise is classifiable as a woman's knit
sweater in heading 6110, Harmonized Tariff Schedule of the United
States (HTSUS). In your submission, you state that the sweater
meets the definition of knit to shape and that the cutting of the
armholes and neck shape from the front panel constitutes minor
cutting. In support of this position you cite Headquarters
Ruling Letter (HRL) 082369, dated January 24, 1989, which dealt
with the country of origin of knit sweaters. This ruling is not
applicable to the instant case as it was decided pursuant to 19
CFR 12.130, which is no longer in effect for determining the
country of origin of textile articles. It is our position that
the cutting of the armholes and neck shape from the front panel
is more than minor cutting and, as a result, the front panel is
not considered to be knit to shape.
You next argue that even if the front panel is not
considered to be knit to shape because of the cutting performed
in Country B, the garment is considered to be knit to shape
because over 50 percent of the exterior surface area is formed by
major parts that have been knitted directly to the shape used in
the good. The back panel and the two sleeves are major parts
that have been knitted or crocheted directly to the shape used in
the good and they constitute over 50 percent of the exterior
surface of the garment.
It is our position that the back panel and sleeves are major
parts that have been knit directly to the shape used in the good
and they comprise over 50 percent of the exterior surface of the
garment. Therefore, the instant sweater is considered to be knit
to shape as the term is defined above.
Section 102.21(e) requires a tariff shift to headings 6101
through 6117 from any heading outside the specified headings. In
this case, a tariff shift to heading 6110, HTSUS, occurs in
Country B, but from components that are classifiable in heading
6117, HTSUS. As heading 6117, HTSUS, is excepted by Section
102.21(c)(2), the tariff shift is not applicable.
Section 102.21(c)(3) applies where the country of origin of
a textile or apparel product cannot be determined pursuant to
paragraph (c)(1) or (c)(2) and where the merchandise consists of
either a good that was knit to shape or (with an exception for
goods of certain specifically enumerated headings), was wholly
assembled in a single country, territory, or insular possession.
Section 102.21(c)(3)(i) provides the following:
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;...
In Scenario #1, the back panel and sleeves, which are knit
in a single country, qualify the sweater as a knit to shape good.
Accordingly, the country of origin of the sweater is the single
country in which the good was knit to shape, that is, Country A.
Section 102.21(c)(3) is also applicable to the sweater in
the second manufacturing scenario. While the front panel is knit
in a second country, the cutting performed on this panel is not
considered minor. Therefore, this panel is not considered to be
knit to shape. As stated above, the back panel and sleeves,
which are knit in a single country, qualify the sweater as a knit
to shape good. Thus, pursuant to section 102.21(c)(3), the
country of origin for the sweater in scenario #2 is the single
country in which the good was knit to shape, that is, Country A.
HOLDING:
The country of origin of the sweater in scenario #1 is
Country A.
The country of origin of the sweater in scenario #2 is
Country A.
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 C.F.R.
177.9(b)(1). This section states that a ruling letter is issued
on the assumption that all of the information furnished in the
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 C.F.R.
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 C.F.R. 177.2.
Sincerely,
John Durant, Director
Tariff Classification Appeals
Division