CLA-2 RR:TC:TE 959582 jb
Diane L. Weinberg, Esq.
Sandler, Travis & Rosenberg
505 Park Avenue
New York, NY 10022-1106
RE: Country of origin determination for woman's sweater; 19 CFR
102.21(c)(3); knit to shape
Dear Ms. Weinberg:
This is in reply to your letter dated August 2, 1996, on
behalf of your client, Peninsula Knitters Ltd., requesting a
country of origin determination for a woman's sweater which will
be imported into the United States. Samples of the garment's
component pieces, before assembly, were submitted to this office
for examination.
FACTS:
The subject merchandise, referenced style 3600, is a woman's
button front knit sweater. You state in your letter that the
subject garment is "knit-to-shape". The manufacturing operations
are as follows:
Option I
COUNTRY A
- all pieces are knit including the two front panels, rib
back panel, rib sleeves and rib neck.
COUNTRY B
- armholes and neck of the front panels are shaped by
cutting;
- components are linked into a finished sweater;
- buttons and button holes are added.
Option II
COUNTRY A
- all pieces, with the exception of the two front panels,
are knit.
COUNTRY B
- the front panels are knit;
- the armholes and neck of the front panels are shaped by
cutting;
- components are linked into a finished sweater;
- buttons and button holes are added.
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apparel entered, or withdrawn from warehouse, for consumption, on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
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:"
6101-6117 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.
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.
Section 102.21(c)(b) states:
(3) Knit to shape. 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 directly 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".
(4) Major parts. 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). You state in your letter that the subject
merchandise is "knit-to-shape" and that the cutting to shape of
the armholes and neck of the front panels constitutes minor
cutting. In support of this claim you refer to HQ 082369, dated
January 24, 1989, a country of origin determination based on the
former rules of origin (19 CFR 12.130), wherein the country of
origin of a sweater was determined to be the country where the
pieces were knit to shape and not the country where the shoulder,
neckline, armhole and sleeve cap were cut and assembled into a
finished sweater. Although HQ 082369 (and HQ 082161, dated June
22, 1988, cited therein) did not consider the cutting to shape of
the neckline and armholes as significant, the present section
102.21 rules of origin hold otherwise. This is evidenced by
Customs response to the definition of "knit-to-shape", published
in the Federal Register, Volume 60, Number 171. Therein Customs
stated:
Whether a good such as a T-shirt is knit to shape depends on
that particular good; however, Customs would not normally
consider the knitting of a tube with no definite contours to
constitute the creation of a knit-to-shape good within the
meaning of these origin rules.
Similarly, in the case of the subject knit sweater, the cutting
to shape of the neck and armholes of the front panels to form the
contours of the sweater goes beyond the "minor cutting"
envisioned by section 102.21(c)(b).
However, in the case of the subject merchandise
consideration must also be given to the fact that the subject
sweater consists not only of the two front panels, but a knit
back panel and sleeves. Thus, although the two front panels are
not knit to shape because of the cutting of the neck and
armholes, the back panel and sleeves are knit to shape. As
stated in the definition of "knit to shape", section
102.21(c)(b), the term knit to shape applies to any good of which
50 percent or more of the exterior surface is formed by major
parts that have been knitted or crocheted directly to shape.
Accordingly, as the back panel and sleeves are major parts which
constitute "50 percent or more" of the exterior surface of the
good, the sweater qualifies as a knit to shape good. The terms
of section 102.21(c)(2) make clear that a change to heading 6101
through 6117 must occur from any heading outside that group.
Before the sweater is completed it consists of multiple knit
components classifiable in heading 6117, HTSUS. As heading 6117,
HTSUS, is excepted by section 102.21(c)(2), the tariff shift is
not applicable.
Paragraph (c)(3) states that, "Where the country of origin
of a textile of 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;
In the case of the subject sweater, 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 subject
sweater in both Options I and II is the single country in which
the good was knit to shape, that is, Country A.
HOLDING:
The country of origin of the subject women's knit sweater,
referenced style 3600, in both Options I and II 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 CFR
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 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