CLA-2-61:S:N:N5: 359 802137
6104.41.0010
Mr. Harold I. Loring
Grunfeld, Desiderio, Lebowitz and Silverman
245 Park Ave.
New York, NY 10167
RE: The tariff classification of four samples of women's knitwear from Australia.
Dear Mr. Loring:
In your letter dated September 19, 1994, submitted on behalf of your client Peninsula Knitters, Ltd., Hong Kong, you requested a tariff classification ruling.
You submitted four samples with your request, which we are returning.
Style 7891 is a woman's 100% cotton, knit pullover. The garment has long sleeves with rib knit cuffs, a pronounced rib knit waistband and a turtleneck. The fabric of this pullover has more than nine stitches per two centimeters measured in the horizontal direction.
Style 41624 is a woman's knit skirt that is composed of 100% wool.
Style 41143 is a woman's knit pair of pants that consists of 100% cashmere fibers.
Style 41116 is a woman's knit, 100% cashmere dress, that extends from the neck and shoulders to below the wearer's mid-thigh. It has long sleeves, inside shoulder pads and a self-fabric belt.
The applicable subheading for Style 7891, the pullover will be 6110.20.2075, Harmonized Tariff Schedule of the United States (HTS), which provides for sweaters,, pullovers...and similar articles, knitted or crocheted, of cotton, other, other, other, women's. The rate of duty will be 20.7% ad valorem.
The applicable HTS subheading for Style 41624, the skirt, will be 6104.51.0000, which provides for women's....skirts....knitted or crocheted, of wool or fine animal hair. The rate of duty will be 17% ad valorem.
The applicable HTS subheading for Style 41143, the pants, will be 6104.61.0010, which provides for women's...trousers...knitted or crocheted, of wool or fine animal hair. The rate of duty will be 17% ad valorem.
The applicable HTS subheading for Style 41116, the dress, will be 6104.41.0010, which provides for women's...dresses...knitted or crocheted, of wool or fine animal hair. The rate of duty will be 17% ad valorem.
You also request a ruling on the country of origin of the four garments, which are produced in more than one country. You state that all four styles have their component parts "knit to shape in Australia", and that the garments are "assembled and finished in China."
For Style 7891, the pullover, the knit panels consist of the front and back panels, the long sleeve panels and the turtleneck section, all of which are knit to shape in Australia. The yarn is a product of Pakistan. You affirm that the panels are knit to shape on a computerized knitting machine that is operated by a highly skilled technician. The time allotted for the operation is five minutes per piece and the value added is $3.40. In China, the assembly and finishing operations take ten minutes per piece, and the value added is $3.00. You note that the linking, washing and pressing machines used in China are operated by mid-level skilled technicians.
For Style 41624, the skirt, the yarn is a product of Italy. The front and back panels and the covering for the elastic waistband are knit to shape in Australia. This operation takes three and one-half minutes and it is performed by a highly skilled technician. The value added is $3.00. In China, the assembly and finishing processes take seven minutes and are performed by operators with mid-level skills. The value added is $2.50.
For the cashmere pants, Style 41143, the yarn is a product of Japan. The knit panels consist of the front panels for both legs and the front, the back panels for both legs and the rear, and the cover for the elastic waistband. In Australia the panels are knit to shape on a machine operated by a highly skilled technician. The time allotted per piece is nine minutes. The value added is $6.00. In China the panels are assembled and finished by linking, washing and pressing machines that are operated by workers with mid-level skills. The value added is $4.00.
For the cashmere dress, the yarn is a product of Japan. The dress, Style 41116, consists of knit to shape panels that form the front, back and sleeves. In Australia these panels are knit to shape on a computerized knitting machine that is operated by a highly skilled technician. The time consumed is eight minutes and the value added is $5.50. In China the dress is assembled and finished. The linking, washing and pressing are performed by operators who possess mid-level skills. The value added is $4.00, and the time taken is twelve minutes.
Country of origin determinations for textile products are subject to Section 12.130 of the Customs Regulations (19CFR 12.130). For products that are processed in more than one country, the country of origin is that country where it last underwent a substantial transformation. This occurs when the product is transformed by a substantial manufacturing or processing operation into a new and different article of commerce. Various criteria are used to ascertain whether a substantial transformation of the product has occurred. In previous decisions Customs Headquarters has held that the cutting of fabric into patterned panels constituted a substantial transformation of the fabric, resulting in the apparel becoming a product of the country where the fabric is cut. Conversely, Headquarters has also ruled that the mere assembly of products by simple combining operations, or joining together by sewing, is not enough to substantially transform components of an article into a new and different article of commerce.
In this instance, the formation of the knit to shape fabric panels in Australia constitutes a new and different article of commerce. The fabric underwent a substantial transformation, therefore, in Australia, which is the country of origin for all four styles which you submitted.
Textile apparel products from Australia are not subject to quota restraints or visa requirements.
This ruling is being issued under the provisions of Section 177 of the Customs Regulations (19 C.F.R. 177).
A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise is imported. If the documents have been filed without a copy, this ruling should be brought to the attention of the Customs officer handling the transaction.
Sincerely,
Jean F. Maguire
Area Director
New York Seaport