CLA-2 RR:TC:TE 959593 jb
Marc S. Greenberg
American Shipping Company, Inc.
600 Sylvan Avenue
Englewood Cliffs, NJ 07632
RE: Country of origin determination for men's knit garments; 19
CFR 102.21(c)(2); tariff shift
Dear Mr. Greenberg:
This is in reply to your letter dated July 1, 1996, on
behalf of your client, EEM USA, Inc., requesting a country of
origin determination for four styles of men's knit garments which
will be imported into the United States. Samples were submitted
to this office for examination and will be returned under
separate cover.
FACTS:
The subject merchandise consists of four styles of men's
knit garments made of fine gauge 100 percent cotton knit fabric.
A description of each of the styles is as follows:
1. Style 1001- a white T-shirt with a crew neck, hemmed
sleeves, a hemmed bottom and featuring the words "Polo"
embroidered on the bottom left hand side of the front panel
in a contrasting color.
2. Style 1002- an oversized yellow T-shirt with a crew neck,
hemmed sleeves, a hemmed bottom and featuring the words
"Polo Sports Ralph Lauren" and the United States flag
printed on the front panel.
3. Style 1003- a black tank top with a hemmed bottom,
shoulder straps measuring 1-1/4 inches and the words
"Polo" embroidered on the bottom left hand side of the front panel in a contrasting color.
4. Style 1004- a green T-shirt with a crew neck, hemmed
sleeves, a hemmed bottom and featuring the words "Polo"
embroidered on the bottom left hand side of the front panel
in a contrasting color.
The manufacturing operations are as follows:
HONG KONG
- fabric is knit in rolls, approximately 54 inches in width.
FEDERATED STATES OF MICRONESIA
- fabric is cut into component pieces according to pattern;
- sewing;
- assembly;
- trimming.
In your letter you stated that you required a classification
ruling for the subject merchandise as per the Harmonized Tariff
Schedule of the United States (HTSUS). As our New York office
issued you New York Ruling Letter (NY) A85421, dated August 1,
1996, discussing the proper classification of this merchandise,
this letter will address only the country of origin determination
for this merchandise. Additionally, you inquire whether the
appearance of the logo bearing the American flag on style 1002
(on both the garment front panel and neck label) is misleading.
ISSUE:
1. What is the country of origin of the subject merchandise?
2. Is the appearance of the United States flag on style 1002
misleading in view of the proper 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.
As indicated in NY A85421, the subject merchandise is
classifiable as follows: styles 1001 and 1004 are classifiable in
subheading 6109.10.0027, HTSUSA, style 1003 is classifiable in
subheading 6109.10.0018, HTSUSA, and style 1002 is classifiable
in subheading 6110.20.2065, HTSUSA. As the subject merchandise is
wholly assembled in a single country, the Federated States of
Micronesia, the country of origin is conferred in the Federated
States of Micronesia.
You raise concerns regarding the presence of the logo
featuring the United States flag on the front of the garment and
on the neck label for style 1002. Section 304 of the Tariff Act
of 1930, as amended (19 U.S.C. 1304), provides that articles of
foreign origin imported into the U.S. must be legibly,
conspicuously and permanently marked to indicate the country of
origin to the ultimate purchaser in the U.S. As provided in 19
CFR 134.41, the marking is considered conspicuous if the ultimate
purchaser is able to find the marking easily and read it without
strain.
Customs has recognized that the presence of a geographic
location other than the country in which the article was produced
on an imported article or its container may mislead the ultimate
purchaser as to the country of origin. Thus, in cases where the
name of a location or the name of any foreign country or locality
other than the country or locality in which the article was
manufactured or produced appears on an imported article or its
container, 19 CFR 134.46 provides that there shall appear,
legibly and permanently, in close proximity to such words, the
name of the country of origin preceded by "Made in", "Product
of," or other words of similar meaning. Although 19 CFR 134.46
does not specifically address the situation where symbols
associated with a country other than the country of origin appear
on the imported articles, Customs has ruled that the presence of
such symbols may be taken into account in determining whether the
country of origin is conspicuous. In the case of the subject
garment, we find that when the United States flag is used as an
integral part of the design of the garment, it is not an
indicator of the country of origin of that garment; therefore,
the requirements of 19 CFR 134.46 are not applicable. See also
Headquarters Ruling Letter (HQ) 733795, dated February 15, 1991,
which determined that the United States flag featured on certain
garments was not indicative of the country of origin of those
garments.
The logo featuring the United States flag on the neck label
however, does trigger the terms of 19 CFR 134.46. As was noted
in C.S.D. 86-5, discussing the country of origin marking
requirements on athletic shoewear and shoe boxes displaying
symbols associated with a country other than the country of
origin, "the presence of symbols associated with a country other
than the country of origin may mislead the ultimate purchaser as
to the country of origin. This is especially true where the
foreign symbols are more readily visible than the country of
origin marking". Thus, Customs held that this defect could be
cured by assuring that the country of origin marking on the shoe
box was conspicuously labeled by using the words "Made in" or
"Product of" followed by the country of origin and by writing
those words in lettering that was at least 1/8 inch high. The
same holds for the submitted merchandise.
HOLDING:
The country of origin of the subject men's knit garments,
referenced styles 1001, 1002, 1003 and 1004, is the Federated
States of Micronesia.
So long as the country of origin label is placed in close
proximity to the logo featuring the United States flag, and the
country of origin label states the name of the country of origin
preceded by "Made in", "Product of" or other words of similar
meaning, written in letters of comparable size as the logo, the
logo will satisfy the terms of section 134.46.
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