CLA-2-RR:NC:TA:N3:356 D81852

Mr. Giuliano Perquoti
Maglificio Stella di Perquoti Giuliano
Lab. Via Belvedere 16
Dom. Fisc.: Di Paterno 16/A
01024 Castiglione In Teverina (VT)
Italy

RE: Classification and country of origin determination for a man's knit garment; 19 CFR 102.21(c)(3)

Dear Mr. Perquoti:

This is in reply to your letter dated June 3, 1998, with additional information received on September 2, 1998, requesting a classification and country of origin determination for a man's knit garment which will be imported into the United States.

FACTS:

The submitted sample is a man's pullover garment constructed from 100 percent wool, jersey knit fabric which measures 14 stitches per two centimeters counted in the horizontal direction. The garment has a rib knit spread collar; a partial front opening with three button closures; long sleeves with rib knit cuffs; and a rib knit bottom.

You have provided a complete set of samples of the garment parts as they are knit and sent to a second country for assembly, and a sample of the finished garment as it will be imported into the United States. The garment parts include the front and back panels, the left and right sleeves, the placket sections, and the collar band.

The front panel has a rib knit self start bottom, self finished sides, and full fashion marks at the underarm area. The remainder of the armhole has a finished straight edge which does not require further shaping before assembly. The upper portion of the front panel has two diagonal lines of dropped stitches which serve as partial lines of demarcation for shaping the neckline. The lines of dropped stitches measure four inches in length and do not meet to form a continuous line of demarcation.

The back panel has a rib knit self start bottom and self finished sides. The back panel is knit to shape with full fashion marks at the underarm area. The remainder of the armhole has a finished straight edge and does not require shaping before assembly. Full fashion marks also appear along the shoulder and continue to the neckline. There are no lines of demarcation on the back panel.

The sleeves have rib knit self start cuffs and self finished sides. They are knit to shape with visible full fashion marks in the armhole area. The manufacturing operations are as follows:

ITALY:

- the front panel is knit with partial lines of demarcation at the neck - the back panel is knit to shape - the right and left sleeve panels are knit to shape - the collar is knit - the placket sections are knit

TUNISIA:

- the front neckline is cut along the partial lines of demarcation - a six inch long vertical strip is cut from the center neckline and squared at the bottom to form the placket opening - rib knit edging is sewn to the placket - buttons and buttonholes are added - the sleeve and body panels are assembled - the rib knit spread collar is sewn on

ISSUE:

What are the classification and country of origin of the subject merchandise?

CLASSIFICATION:

The applicable subheading will be 6110.10.2070, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for sweaters, pullovers, ... and similar articles, knitted or crocheted: of wool or fine animal hair: other: men's or boys'. The rate of duty will be 16.6 percent ad valorem. The garment falls within textile category designation 438.

COUNTRY OF ORIGIN - LAW AND ANALYSIS:

On December 8, 1994, the President signed into law the Uruguay Round Agreements Act. Section 334 of that Act (codified at 19 U.S.C. 3592) provides new rules of origin for textiles and apparel entered, or withdrawn from warehouse, for consumption, on and after July 1, 1996. On September 5, 1995, Customs published Section 102.21, Customs Regulations, in the Federal Register, implementing Section 334 (60 FR 46188). Thus, effective July 1, 1996, the country of origin of a textile or apparel product shall be determined by 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: "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 ap- plicable change in tariff classification, and/or met any other requirement, specified for the good in paragraph (e) of this sec-tion:"

Paragraph (e) 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.

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, territory or insular possession.

The subject merchandise is classifiable as a men's knit pullover in heading 6110, HTSUSA. Section 102.21 (e) requires a tariff shift to headings 6101 through 6117 from any heading outside that group. In this case, a tariff shift to heading 6110, HTSUSA, occurs in Tunisia, but from components that are classifiable in heading 6117, HTSUSA. As heading 6117, HTSUSA, is excepted by Section 102.21 (c)(2), the tariff shift is not applicable.

Section 102.21(c)(3) applies where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1) or (2) and where the merchandise consists of either a good that was knit to shape or (with the exception for goods of certain specifically enumerated headings), was wholly assembled in a single country, territory, or insular possession.

Section 102.21 (c)(3)(i) provides the following:

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; ...

Section 102.21 (b) states that:

(3) KNIT TO SHAPE: The term "knit to shape" applies to any good of which 50 percent or more of the exterior surface area is formed by major parts that have been knitted or crocheted directly to the shape used in the good, with no consideration being given to patch pockets, appliques, or the like. Minor cutting, trimming, or sewing of those major parts will not affect the determination of whether a good is "knit to shape".

(4) MAJOR PARTS: The term "major parts" means integral components of a good but does not include collars, cuffs, waistbands, plackets, pockets, linings, paddings, trim, accessories, or similar parts.

In the case of the subject garment, the back panel and the sleeves are major parts which have been knit directly to the shape used in the good and they comprise over 50 percent of the exterior surface of the garment. The partial lines of demarcation at the neckline of the front panel are not continuous along the entire contour of the neckline and do not shape the placket. Consequently, the front neckline is not considered "knit to shape". See Headquarters ruling 960516 SG of July 14, 1998. The subject garment, however, is still considered "knit to shape" as the term is defined above.

Accordingly, Section 102.21 (c)(3)(i) is applicable to the subject merchandise. Thus, the country of origin for the garment is Italy, the single country where the panels are knit to shape.

HOLDING:

The country of origin of the subject garment is Italy. Based upon international textile trade agreements, products of Italy are not presently subject to quota or visa requirements.

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 212-466-5877.


Sincerely,

Robert B. Swierupski
Director,
National Commodity
Specialist Division