CLA-2-61: RR:NC:TA:361 L85329

Ms. Sandy Pu, Import Traffic Dept.
Yu & Yu Corp
9460 Telstar Ave. Unit 5
El Monte, CA 91731

RE: The classification, country of origin and status under the United States-Caribbean Basin Trade Partnership Act (CBTPA) of a pair of women’s trousers from Nicaragua.

Dear Ms. Pu:

In your letter of May 26, 2005 on behalf of Presitex USA, Inc., you requested a ruling on the classification, country of origin and CBTPA eligibility for women’s woven trousers. The sample and partially assembled components will be returned as requested.

FACTS:

Style LB40753121 is a pair of women’s trousers constructed from 97 percent cotton, three percent spandex woven pile fabric. The trousers have a flat waistband with belt loops, a front opening with a zipper and button closure, three front pockets, two rear pockets with pocket flaps and button closures, decorative rivets located at the corners of the pockets, and hemmed leg openings. The front button closure is in the left-over-right direction. Chapter 62, note 8 states, in part: Garments of this chapter designed for left over right closure at the front shall be regarded as men's or boys' garments, and those designed for right over left closure at the front as women's or girls' garments. These provisions do not apply where the cut of the garment clearly indicates that it is designed for one or other of the sexes. As the trousers have a left over right front closure, the presumption is that they will be for men. However, it is clear based on the cut that they are for women. Therefore, the trousers will be classified as a woman’s garment.

You state that the sourcing/manufacturing process for the garment will be as follows:

China Fabric woven Trim sourced Cut fabric into components Attach back yoke to back panels Attach pocket bags to front pockets Set back pockets, including flaps Sew side seams, attaching front and back panels Join back panels, forming back rise Attach zipper to left front panel, and set up fly Tack right side of fly to top of right front panel Attach label to waistband Sew interlining to waistband panel Sew one side of waistband to front and back panels Make belt loops and attach them to body of garment

Nicaragua Attach the other side of the waistband Finish zipper/fly Join front rise below the zipper Set care labels Attach belt loops to the waistband Sew inseam Hem pant legs Make button holes, attach buttons Attach rivets Wash, inspect, press, attach hang tags, pack

ISSUE:

What are the classification, country of origin, and status under the United States-Caribbean Basin Trade Partnership Act (CBTPA) of the subject merchandise?

CLASSIFICATION:

The applicable subheading for style LB40753121 will be 6204.62.4020, Harmonized Tariff Schedule of the United States (HTS), which provides for Women’s…Trousers…Of cotton: Other. The rate of duty is 16.6 percent ad valorem.

Style LB40753121 falls within textile category designation 348. 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.

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 6201–6208 If the good consists of two or more component parts, a change to an assembled good of heading 6201 through 6208 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 does not consist of two or more component parts, a change to heading 6201 through 6208 from any heading outside that group, except from heading 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408, 5512 through 5516, 5602 through 5603, 5801 through 5806, 5809 through 5811, 5903, 5906 through 5907, and 6217, and subheading 6307.90, and provided that the change is the result of a fabric-making process. The submitted garment consists of two or more components. As the garment is assembled in more than one country, territory or insular possession, the terms of the tariff shift are not met, and, therefore, 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 to shape nor wholly assembled in a single country, territory or insular possession, 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".

The most important assembly operations are completing the attachment of the waistband, finishing the zipper fly attachment, joining the front rise, sewing the belt loops and sewing the inseam. Accordingly, the country of origin is Nicaragua, the country in which these operations occur.

You have also questioned the status of the trousers under the United States-Caribbean Basin Trade Partnership Act (CBTPA), specifically, under provision 9820.11.27. That subheading heading provides for:

Apparel articles both cut (or knit-to-shape) and sewn or otherwise assembled in one or more such countries from fabrics or yarn designated by the appropriate U.S. government authority in the Federal Register as fabrics or yarn not available in commercial quantities in the United States, under any terms as such authority may provide

As provided for in U.S. Note 1, Subchapter XX of Chapter 98, HTSUS, Nicaragua is a designated beneficiary Caribbean Basin country.

The fabric, woven in China and used in the garment is a cut warp pile fabric (not an uncut corduroy, as indicated in your request.) The fabric would be classified in subheading 5801.25.00. This is not one of the fabrics designated as unavailable in commercial quantities as noted in the above subheading. The use of this fabric is also precluded in the other subheadings of this section. Therefore, the garment is not eligible for CBTPA treatment.

HOLDING:

The country of origin of the garment is Nicaragua, however, the garment is not eligible for CBTPA treatment.

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 Angela DeGaetano at 646-733-3052.

Sincerely,

Robert B. Swierupski
Director,
National Commodity
Specialist Division