CLA 2-RR:NC:TA:359 L85243
Ms. Gail T. Cumins
Sharrets, Paley, Carter & Blauvelt, P.C.
75 Broad Street
New York, NY 10004
RE: Classification and country of origin determination for women’s knitted pullovers; 19 CFR 102.21(c)(4)
Dear Ms. Cumins:
This is in reply to your letter dated May 25, 2005, requesting classifications and country of origin determinations for two women’s knitted pullovers, which will be imported into the United States. This request was submitted on behalf of Polo Ralph Lauren, located in Lyndhurst, New Jersey.
FACTS:
Style 37J12 is a long sleeved crewneck pullover made of 100% cashmere finely knitted fabric. It features rib knit cuffs, neckline and waistband. Style 37P52 is a woman’s long sleeved v-necked pullover made of 55% cashmere and 45% cotton finely knitted fabric. Style 37P52 also features rib knit cuffs, neckline and waistband. In addition to the finished garments, you submitted the component panels from which the pullovers are constructed.
For style 37J12, these consist of a back panel which has a self start bottom, self-finished sides, armholes and neckline contoured to shape during the knitting process; two sleeve panels with self-start ends, self-finished sides and which are contoured to shape at the point of joining the sleeve panel to the body of the garment; and a front panel which has a self-start bottom, self finished sides and a neckline contoured to shape during the knitting process. The components for style 37P52 share the same characteristics and features, except that the front panel neckline is v-shaped.
The manufacturing operations for both styles are as follows:
Hong Kong:
The back and sleeve panels are knitted.
China:
The front panels are knitted, and the garments are linked together.
ISSUE:
What are the classification and country of origin of the garments?
CLASSIFICATION:
The applicable subheading for style 37J12 will be 6110.12.1060, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for sweaters…and similar articles, knitted or crocheted: Of wool or fine animal hair: Of Kashmir (cashmere) goats: Wholly of cashmere: Other: Women’s or girls’. The general rate of duty will be 4% ad valorem.
The applicable subheading for style 37P52 will be 6110.12.2080, HTSUSA, which provides for sweaters…and similar articles, knitted or crocheted: Of wool or fine animal hair: Of Kashmir (cashmere) goats: Other: Other: Women’s or girls’. The general rate of duty will be 16% ad valorem.
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 pullovers are 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 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.
Section 102.21(e) states that the tariff shift must occur from a heading outside of the group 6101 through 6117: however, the instant tariff shift occurs within the designated headings. Accordingly, as the pullovers do not qualify for the tariff shift, 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 pullovers are not knit to shape 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 both garments, the knitting to shape of the back panel and the two sleeve panels, which occur in Hong Kong, constitute the most important assembly or manufacturing process. Accordingly, the country of origin of the pullovers is Hong Kong.
HOLDING:
The country of origin of the pullovers, styles 37J12 and 37P52 is Hong Kong.
Style 37J12 falls within textile category designation 446. Style 37P52 falls within textile category designation 438. Quota and visa status are the result of international agreements that are subject to frequent renegotiations and changes. To obtain the most current information as to whether quota and visa requirements apply to this merchandise, we suggest that you check, close to the time of shipment, the “Textile Status Report for Absolute Quotas” available at our web site at www.cbp.gov. In addition, you will find current information on textile import quotas, textile safeguard actions and related issues at the web site of the Office of Textiles and Apparel, at otexa.ita.doc.gov.
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 Camille R. Ferraro at 646-733-3049.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division