CLA 2-RR:NC:TA:N3:356 K85678
Mr. Scott Kim
Nextrade Merchandising Inc.
663 Brea Canyon Road, #7
Walnut, CA 91789
RE: Classification and country of origin determination for men’s knit shorts; 19 CFR 102.21(c)(4); most important assembly or manufacturing operation
Dear Mr. Kim:
This is in reply to your letter dated April 15, 2004, requesting a classification and country of origin determination for men’s knit shorts which will be imported into the United States. You have provided samples of the garment parts as they are partially assembled in China and a sample of the finished garment as it will be imported from El Salvador into the United States. As requested, your samples will be returned.
FACTS:
Style 774 M is a pair of men’s shorts constructed from 100% cotton, jersey knit fabric. The garment has a tunnel elastic waistband with an inside drawstring; side seam pockets; and hemmed legs.
The manufacturing operations for Style 774 M are as follows:
CHINA:
- The fabric is knit and cut into component parts
- The side pockets are formed and attached to the front panels
- The front and back panels are sewn together at the side seams
EL SALVADOR:
- The front rise is sewn closed
- The back rise is sewn closed
- The inseam is sewn closed
- The drawstring holes are formed at the top of each front panel
- The elastic band is attached at the waist
- The waistband is formed and the drawstring is inserted
- The legs are hemmed
- The rear waistband label is sewn to the inside of the garment
- The garment is inspected, trimmed, folded and packed for export
ISSUE:
What are the classification and country of origin of the subject merchandise?
CLASSIFICATION:
The applicable subheading for Style 774 M will be 6103.42.1050, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for men’s or boys’ . . . trousers and shorts: knitted or crocheted: of cotton: shorts: men’s. The rate of duty will be 16.1 % ad valorem.
Style 774 M falls within textile category designation 347. 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.
Although the garment is not knit to shape and consists of two or more component parts, it is not wholly assembled in a single country, territory or insular possession. Accordingly, as the terms of the tariff shift are not met, Section 102.21(c)(2) is inapplicable.
Section 102.21(c)(3) states that, "Where the country of origin of a textile or 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; or
(ii) Except for goods of heading 5609, 5807, 5811, 6213, 6214, 6301 through 6306, and 6308, and subheadings 6209.20.5040, 6307.10, 6307.90, and 9404.90, if the good was not knit to shape and the good was wholly assembled in a single country, territory, or insular possession, the country of origin of the good is the country, territory, or insular possession in which the good was wholly assembled.
As the subject merchandise is neither knit, nor wholly assembled in a single country, Section 102.21 (c)(3) is inapplicable.
Section 102.21 (c)(4) states, "Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1), (2) or (3) of this section, the country of origin of the good is the single country, territory or insular possession in which the most important assembly or manufacturing process occurred".
In the case of Style 774 M, the joining of the front and back rise; the joining of the inseams, and the attaching of the elastic to the waistband constitute the most important assembly processes. Accordingly, under Section 102.21(c)(4), the country of origin of Style 774 M is El Salvador.
The marking of the subject garments as “Made in El Salvador” is consistent with the origin rules set forth in Section 102.21, Customs Regulations, and with the country of origin marking requirements in Part 134, Customs Regulations.
HOLDING:
The country of origin of STYLE 774 M is El Salvador. Based upon international textile trade agreements, products of El Salvador are not presently subject to quota or the requirement of a visa.
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, 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