CLA-2-RR:NC:TA:N3:356 K80773
Ms. Jessica T. DePinto
Hodes Keating & Pilon
39 South La Salle Street, Suite 1020
Chicago, IL 60603-1731
RE: Classification and country of origin determination for men’s knit garments; 19 CFR 102.21(c)(2); tariff shift; status under the Caribbean Basin Trade Partnership Act (CBTPA).
Dear Ms. DePinto:
This is in reply to your letter dated November 25, 2003 on behalf of Knights Apparel, LLC, concerning the classification, country of origin determination, and status under the Caribbean Basin Trade Partnership Act (CBTPA) for four styles of men’s knit garments that will be imported into the United States. You also requested that certain information contained in the letter be kept confidential because of possible competitive harm to your client. In a letter dated January 27, 2004, you withdrew the request for confidential treatment.
FACTS:
Style HMC0004 is a men’s pullover garment constructed from 100% cotton, heavy weight jersey knit fabric that measures 25 stitches per two centimeters counted in the horizontal direction. The garment has a rib knit crew neckline; short, hemmed sleeves; a sweat patch at the rear neckline; a large woven label on the lower left front panel near the hem; an embroidered logo on the left sleeve; and a straight, hemmed bottom.
Style SMC0097 is a men’s pullover garment constructed from 100% cotton, heavy weight jersey knit fabric that measures 25 stitches per two centimeters counted in the horizontal direction. The garment has a rib knit crew neckline; short, hemmed sleeves; a sweat patch at the rear neckline; a large woven label on the lower left front panel near the hem; a large embroidered logo on the center chest; and a straight, hemmed bottom.
Style SAM05 is a men’s pullover garment constructed from 100% cotton, heavy weight jersey knit fabric that measures 25 stitches per two centimeters counted in the horizontal direction. The garment has a rib knit crew neckline; short, hemmed sleeves; a large screen printed design on the center chest; and a straight, hemmed bottom.
Although you have provided specification sheets for Style HMH0002, we are unable to classify the garment without a sample.
You state that the yarn, sewing thread and embroidery thread will be of U.S. origin and that the fabric will be knit, dyed and finished in a CBTPA beneficiary country, which is designated as “Country #1”. You further state that the knit fabric will be cut and assembled into finished garments in a second CBTPA beneficiary country, designated as “Country #2. The woven logo patches will either be of U.S. origin or they will originate in a CBTPA beneficiary country. The inside neck labels may be either of U.S. or foreign origin. You state that the woven patches and the neck labels, collectively, will not exceed 25% of the cost of the components of the assembled garment.
You have provided samples of the finished garments for our review. As requested, your samples will be returned.
The manufacturing operations for the three pullovers are as follows:
CBTPA COUNTRY #1:
- 100% cotton yarn of U.S. origin is knit into fabric
- The fabric is dyed and finished
CBTPA COUNTRY #2:
- The fabric is cut into component parts
- The cut parts are assembled into completed garments
- Embroideries, appliques, heat transfers are applied
- The garments are inspected and packed for export to the United States
ISSUE:
What are the classification, country of origin, and status under the Caribbean Basin Trade Partnership Act of the subject merchandise?
CLASSIFICATION:
The applicable subheading for the three submitted garments will be 6110.20.2065, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for men’s or boys’ pullovers, knitted or crocheted: of cotton: men’s. The general rate of duty is 16.5 percent ad valorem.
The three garments fall within textile category designation 338. The designated textile and apparel categories and their quota and visa status are the result of international agreements that are subject to frequent renegotiations and changes. To obtain the most current information, we suggest that you check, close to the time of shipment, the Textile Status Report for Absolute Quotas, which is available at our Web Site at www.cpb.gov. In addition, the designated textile and apparel categories may be subdivided into parts. If so, visa and quota requirements applicable to the subject merchandise may be affected and should also be verified at the time of shipment.
COUNTRY OF ORIGIN - LAW AND ANALYSIS:
Section 334 of the Uruguay Round Agreements Act (codified at 19 U.S.C. 3592), enacted on December 8, 1994, provided rules of origin for textiles and apparel entered, or withdrawn from warehouse for consumption, on and after July 1, 1996. Section 102.21, Customs Regulations (19 C.F.R. 102.21), published September 5, 1995, in the Federal Register, implements Section 334 (60 FR 46188). Section 334 of the URAA was amended by Section 405 of the Trade and Development Act of 2000, enacted on May 18, 2000, and accordingly, section 102.21 was amended (68 Fed. Reg. 8711). Thus, the country of origin of a textile or apparel product shall be determined by the 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 of the foreign materials 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) in pertinent part 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":
HTSUS Tariff shift and/or other requirements
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.
Paragraph (b) (6) defines “wholly assembled” as:
The term “wholly assembled” when used with reference to a good means that all components, of which there must be at least two, preexisted in essentially the same condition as found in the finished good and were combined to form the finished good in a single country, territory, or insular possession. Minor attachments and minor embellishments (for example, appliques, beads, spangles, embroidery, buttons) not appreciably affecting the identity of the good, and minor subassemblies (for example, collars, cuffs, plackets, pockets) will not affect the status of a good as “wholly assembled” in a single country, territory, or insular possession.
The submitted garments are not knit to shape and consist of two or more parts. As all of the assembly operations occur in CBTPA Country #2, the garments are considered “wholly assembled” in a single country, that is, CBTPA Country #2. As per the terms of the tariff shift requirement, country of origin is conferred in CBTPA Country #2.
Based on the information you supplied, and provided all requirements are met, the garments are eligible for duty free treatment under subheading 9820.11.09, HTSUSA, which provides for:
Apparel articles (other than socks provided for in heading 6115 of the tariff schedule) knit to shape in such a country from yarns wholly formed in the United States; knitted or crocheted apparel articles (except t-shirts, other than underwear, classifiable in subheadings 6109.10.00 and 6109.90.10 and described in subheading 9820.11.12) cut and wholly assembled in one or more such countries from fabrics formed in one or more such countries or from fabrics formed in one or more such countries and the United States, all the foregoing from yarns wholly formed in the United States (including fabrics not formed from yarns, if such fabrics are classifiable in heading 5602 or 5603 of the tariff schedule and are formed in one or more such countries) and subject to the provisions of U.S. note 2(b) to this subchapter
HOLDING:
The country of origin of the three submitted garments is CBTPA Country #2. Based upon international textile trade agreements, products of CBTPA Country #2 may be subject to visa requirements and quota restraints.
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 sections states that a ruling letter, either directly, by reference, or by implication, is accurate and complete in every material respect.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177). 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.
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Mary Ryan at 646-733-3271.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division