CLA 2-61:RR:NC:TA:359 F87222
Ms. Ruby L. Wood
Evans and Wood & Co., Inc.
P.O. Box 610005
DFW Airport, Texas 75261
RE: Classification and country of origin determination for a unisex knitted pullover sweatshirt; 19 CFR 102.21(c)(2); tariff shift; Applicability of partial duty exemption under subheading 9802.00.80, HTSUSA
Dear Ms. Wood:
This is in reply to your letter dated March 29, 2000, and to subsequent information that was received in this office on May 23, 2000, submitted on behalf of Hobby Lobby Stores, Oklahoma City, Oklahoma, requesting a tariff classification, country of origin determination and eligibility under 9802.00.80 HTSUSA for a unisex knitted pullover sweatshirt which will be imported into the United States.
FACTS:
The subject merchandise consists of a unisex knitted pullover sweatshirt that is constructed from 50% cotton, 50% polyester, finely knit fabric that is napped on the inside surface. The garment features a crew neckline, long sleeves with ribbed cuffs, and a ribbed bottom.
The manufacturing operations for the unisex knitted pullover sweatshirt are as follows:
You intend to purchase American made fabric which you will cut into “sweatshirt patterns” in the United States. These fabric panels which are the components of the sweatshirts will be sent to Honduras for assembly into the finished garments.
ISSUE:
What are the classification and country of origin of the subject merchandise? Is it eligible for partial duty exemption under 9802.00.80?
CLASSIFICATION:
The applicable subheading for the unisex knitted pullover sweatshirt will be 6110.30.3045, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for sweaters, pullovers, sweatshirts…knitted or crocheted, of man-made fibers, other, other, other, other, sweatshirts, women’s or girls’. The rate of duty will be 32.9% ad valorem.
The unisex knitted pullover sweatshirt falls within textile category designation 639. 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 U.S. Customs Service Textile Status Report, an internal issuance of the U.S. Customs Service, which is available at the Customs Web Site at WWW.CUSTOMS.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:
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 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
6110.30.3045 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
As the unisex knitted pullover sweatshirt is assembled in a single country, that is, in Honduras, as per the terms of the tariff shift requirement, country of origin is conferred in Honduras.
The sweatshirt may also be eligible for a partial duty exemption under subheading 9802.00.80, HTSUSA, when it is returned to the United States. Subheading 9802.00.80, HTSUSA, provides a partial duty exemption for
articles assembled abroad in whole or in part of fabricated components, the product of the United States, which (a) were exported in condition ready for assembly without further fabrication, (b) have not lost their physical identity in such articles by change in form, shape, or otherwise, and (c) have not been advanced in value or improved in condition abroad except by being assembled and except by operations incidental to the assembly process.
All three requirements of subheading 9802.00.80 HTSUSA, must be satisfied before a component may receive a duty allowance. An article entered under this provision in the tariff is subject to duty upon the full cost or value of the imported assembled article, less the cost or value of the U.S. components assembled with it, upon compliance with the requirements for documentation as noted in the Customs Regulations, Section 10.24 (19 CFR 10.24).
HOLDING:
The country of origin of the sweatshirt is Honduras. Based upon international textile trade agreements products of Honduras are not subject to quota nor 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 Mike Crowley at 212-637-7077.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division