CLA-2 RR:CR:TE 960516 SG
Thomas Travis, Esq.
Sandler, Travis & Rosenberg, P.A.
5200 Blue Lagoon Drive
Miami, Florida 33126-2022
RE: Country of origin determination for woman's knit cardigan;
19 C.F.R. 102.21(c)(3); shaped panels; clear cutting lines;
knit to shape
Dear Mr. Travis:
This is in reply to your letter dated January 7, 1998,
following up on the resubmitted request by your client, Charming
Shoppes, Inc. (Charming), dated March 25, 1997, for a country of
origin determination on a woman's knit garment which will be
imported into the United States. Samples of the garment's
component pieces, before assembly, and a finished garment were
submitted to this office for examination.
FACTS:
The finished merchandise, is a woman's knit cardigan made of
100 percent acrylic fabric, featuring long sleeves, a round
neckline and a full front, buttoned opening that closes right
over left. There are nine fabric covered buttons and woven
fabric capping around the neckline and down the front placket.
The sleeves and bottom of the garment are not hemmed, merely
stitched to appear as if hemmed. The jersey knit fabric of the
garment has more than nine stitches per two centimeters measured
in the horizontal direction. The cardigan is intended for wear
on the upper part of the torso, extending from the wearer's neck
and shoulders to the hips. Also submitted was a sample of the
right and left sleeve, front and back panels as they appear prior
to being sent to China for linking and looping.
As per the letter from Charming, the manufacturing
operations for the subject garment are as follows:
2
Hong Kong
1. Right and left sleeve, front and back panels are knit to
shape
2. Marker lines for linking are formed
China
3. Cutting of front panel into separate right and left
panels
4. Linking and stitching. Front and back panels are linked
according to the marker lines at the shoulder and side seams
to form the body. The sleeves are center seam stitched,
linked and full-fashion stitched to the body
5. Stitching and finishing tape around the right and left
front panels
6. Hemming of bottom
7. Making button holes and attaching buttons
8. Pressing.
Hong Kong
9. Label sewing and packaging.
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apparel entered, or withdrawn from warehouse, for consumption, on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
3
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(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.
In the case of the subject knit sweater you state that all
of the panels are knit to
shape. We agree that the sleeve panels are full fashioned or
knit to shape.
An examination of the front panel reveals that at the top of
the panel, in a semi-circular formation, the knit fabric changes
from a two by two rib which comprises the rest of the panel, to a
two by one rib (in a ladder effect). This ladder effect (changed
pattern) is continuous, with clear starting and ending points,
and is spaced no more than one inch apart. It therefore, serves
as a clear unambiguous line of demarcation (cutting line); that
is, where the semi-circular shape is to be cut out, resulting in
a round neckline. The front panel also has lines of demarcation
indicating where it is to be cut into two front panels. The
front panel's armholes have been fashioned or shaped during the
knitting process. The front panel also has two very small holes
at each side,
which are marker lines. We understand that the front and back
panels are linked according to the marker lines at the shoulder
and side seams to form the body.
4
It is our view that the change in pattern which is knit
directly into the fabric, is continuous, has clear starting and
ending points, and serves as a clear and unambiguous line of
demarcation. It is this line of demarcation which sufficiently
identifies the neck contour of the panel. As such it dedicates
the shape of the neckline. Inasmuch as the shape of the
neckline is clearly dedicated and the armholes are full-fashioned
or shaped in the knitting process, the cutting involved, which
merely separates the shaped neckline, is minor. Accordingly,
the neckline of the garment is shaped by clear lines of
demarcation. Where, as in the panel we are examining, either the
neckline and the armholes are shaped directly during the knitting
process or by clear lines of demarcation, the panel is, in our
view, knit to shape.
The back panel has armholes that have been shaped or
fashioned during the knitting process. The back panel also has
two very small holes at each side, which are marker lines. At
the top of the panel, at approximately two inches both right and
left of the center of the panel, the knit fabric changes from a
two by two rib which comprises the rest of the panel, to a two by
one rib (in a ladder effect). This ladder effect (changed
pattern) is spaced approximately one half an inch apart and
continues for approximately one and one half inches. It is
neither continuous nor does it have clear starting and ending
points. As a result, it does not serve as a clear unambiguous
line of demarcation. It is therefore, the cutting rather than
the change in pattern, which determines the neck contour of the
back panel. It, therefore, does not have a shaped neckline.
However, inasmuch as the armholes are shaped, the fact that the
neckline is not, and requires some cutting which we believe to be
minor when considering the panel as a whole, will not prevent the
panel itself from being considered to be knit to shape.
Inasmuch as the front and back panels and sleeves of the
sweater under consideration are considered to be knit to shape,
the finished cardigan qualifies as a knit to shape good.
Section 102.21(e) requires a tariff shift to headings 6101
through 6117 from any heading outside the specified headings, if
the good is knit to shape. In this case, the tariff shift
occurred from components classifiable in heading 6117. As
heading 6117 is excepted by section 102.21(c)(2), the tariff
shift was not applicable. We must then look to section (c)(3)
which provides that where the country of origin cannot be
determined under paragraph (c)(1) or (2) of this section: (i) If
the good was knit to shape the country of origin is the single
country, territory, or insular possession in which the good was
knit. In the case of the subject cardigan, inasmuch as all the
sweater components are knit in a single country (Hong Kong), it
is Hong Kong which is the, the country of origin of this
cardigan.
HOLDING:
The country of origin of the subject women's knit cardigan
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 C.F.R.
177.9(b)(1). This section states that a ruling letter is issued
on the assumption that all of the information 5
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.
A copy of this ruling letter should be attached to the entry
documents filed at the time this merchandise is entered. If the
documents have been filed without a copy, this ruling should be
brought to the attention of the Customs officer.
In order to ensure uniformity in Customs' classification of
knit to shape merchandise and to eliminate uncertainty, pursuant
to section 177.9(d)(1), Customs Regulations (19 CFR 177.9(d)(1),
inconsistent rulings will be revisited and if necessary clarified
to reflect this determination.
Sincerely,
John Durant, Director
Commercial Rulings Division