CLA 2-RR:NC:TA:360 F87979
Harold I. Loring
Grunfeld, Desiderio, Silverman & Lebowitz LLP
245 Park Avenue
33rd Floor
New York, NY 10167-3397
RE: Classification and country of origin determination for women's woven garments; 19 CFR 102.21(c)(4)
Dear Mr. Loring:
This is in reply to your letter dated June 5, 2000, on behalf of Ferrara Manufacturing Company, requesting a classification and country of origin determination for women's woven garments that will be imported into the United States. The samples submitted with your request will be returned under separate cover.
FACTS:
The subject merchandise consists of a blazer, skirt and two pairs of trousers. All three garments are constructed from 60% cashmere and 40% wool woven fabric. You have stated that other fiber contents may also be used. The fully lined jacket features long sleeves without cuffs but with button trim; a collar and lapels; a full front opening secured by three buttons; a breast pocket and two besom pockets below the waist. The pants are cuffed and may be either fully lined or partially lined. They feature a waistband with a button and hook and eye closure; a front zipper; side seam pockets and a rear pocket. The fully lined skirt features a waistband with hook and eye and a zipper closure underneath; two rear pockets; and a rear, center vent at the hemline.
The fabric for the garments is woven in Italy and shipped to the Dominican Republic. The manufacturing operations for the garments are as follows:
Jacket
Dominican Republic
fabric is cut into parts (spread on tables, a pattern maker is placed over the fabric,
and the fabric is cut with an electric knife)
the parts are numbered by a Sobar machine
the fusibles are heat-bonded by a fusing machine to certain parts such as collars
and lapels for stiffening purposes
a lining, consisting of a back panel, two front panels, and sleeve parts, is made using a regular sewing machine
darts are sewn into front panels between chest and waist using a sewing machine
pockets, two lower one upper, are created (pockets are slashed, pocket linings are closed, and a basting stitch is applied to close the pocket) using a welt machine and sewing machine
the Hymo is sewn, basted, to the front panels using a blind stitch machine
collar is made up from the top and under collar pieces using a sewing machine
each sleeve is made up from the top and under sleeve pieces using a regular sewing machine
the back is made up from the left back and right back panels using a sewing machine
United States
the back panel is joined to the left and right front panels by joining the shoulder seams and the side seams using a sewing machine
the sleeves are attached to the jacket body using a sleeve setter machine
the collar is set to the jacket body using a sewing machine
sleeve heads consisting of soft wadding material are sewn by sewing machine to the seams joining the sleeves to the body
the jacket shell seams are pressed using a hand iron and armhole pressing machine
the collar is hand-basted at its base
the lining is set to the inside of the jacket shell and labels are sewn using a sewing machine
the lining is basted to the front of the jacket and blind stitched using a jumper baster and blind stitch machine
shoulder pads are set by hand
the lining is closed by hand at the hem of the jacket
buttonholes and buttons are placed by hand and machine
finishing operations, including final pressing, tagging, cleaning, inspection, and packaging are preformed
Pants
Dominican Republic
fabric is cut into parts
the parts are numbered by Sobar machine
fusibles are heat-bonded to certain parts such as waistbands for stiffening
linings are made for pants that are to be either fully lined or half-lined (the components for a full lining include left and right front panels and left and right back panels that are joined; the components for a half-lining include only left and right front panels down to the knee that are sewn together) using a sewing machine
two front pockets are created by setting pocket linings to the front panels and topstitching using a sewing machine
the zipper, consisting of zipper, zipper facing, and "J" stitch, is attached to front panel by sewing machine
darts are sewn into the back panels from the waistband to the back pocket using a sewing machine
two back pockets are created (pockets are slashed, the pocket linings are closed, and a basting stitch is applied to close the pocket) using a welt machine and sewing machine
the waistband, usually consisting of a left and right side, is made up by joining the two pieces using a sewing machine
United States
- the four panels are joined together by sewing machine (the side seams are closed, the inseams are closed, and the crotch is closed)
in the case of lined pants, the lining is set to the inside of the pant shell by sewing machine
the waistband is set to the pant body by sewing machine
the seams are joining the parts are pressed by hand iron
the bottom hem of the pant is completed by hand
buttonholes and buttons are applied by hand and machine
finishing operations, including final pressing, tagging, cleaning, inspecting, and packaging are preformed
Skirts
Dominican Republic
the fabric is cut into parts
the parts are numbered by Sobar machine
fusibles are heat-bonded to certain parts such as waistbands
a lining, consisting of a (darted) front and two back panels, is made up by sewing machine
front pockets are created (pocket linings are set to front panels and pockets are topstitched) using a sewing machine
darts are sewn into the front and back panels using a sewing machine
back pockets are created (pockets are slashed, the pocket linings are closed, and a basting stitch is applied to close the pocket) using a welt machine and sewing machine
a waistband, usually consisting of two parts, the left and right sides, is made up using a sewing machine
United States
the zipper is attached by sewing machine to skirt panels
the skirt panels are joined to form a skirt shell using a sewing machine
the lining is set to the inside of the skirt shell using a sewing machine
the waistband is set to the skirt body using a sewing machine
the seams are pressed by hand iron
the hem of the skirt is completed by hand
buttonholes and buttons are placed by hand and machine
finishing operations, including final pressing, tagging, cleaning, inspecting and packaging are preformed
ISSUE:
What are the classification and country of origin of the subject merchandise?
CLASSIFICATION:
The applicable subheading for the jacket will be 6204.31.2020, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for women's suit-type jackets and blazers, of wool or fine animal hair. The rate of duty will be 18.5 cents/kg + 18.9% ad valorem.
The applicable subheading for the pants will be 6204.61.9010, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for women's pants of wool or fine animal hair. The rate of duty will be 15 percent ad valorem.
The applicable subheading for the skirt will be 6204.51.0010, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for women's skirts of wool or fine animal hair. The rate of duty will be15.2 percent ad valorem..
The jacket falls within textile category designation 435, the pants within category 448 and the skirt within category 442. 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:" For purposes of the tariff, women’s jackets, pants and skirts are classified in heading 6204, HTSUS.
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":
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.
There are two issues which need to be addressed with respect to the country of origin of the subject merchandise: the origin of the subject merchandise based on the classification of the “garment parts” manufactured in the Dominican Republic, before completion into the finished garments in the United States, and the origin of the subject merchandise based on the classification of the finished garments, after final assembly in the United States. In the case of the unfinished garments, that is, the garment parts imported from the Dominican Republic, we look to GRI 2(a) for guidance:
General Rule of Interpretation 2(a) states:
Any reference in a heading to an article shall be taken to include a reference to
that article incomplete or unfinished, provided that, as entered, the incomplete or unfinished article has the essential character of the complete or finished article.
It shall also include a reference to that article complete or finished (or falling to be classified as complete or finished by virtue of this rule), entered unassembled or disassembled.
GRI 2(a) establishes a two- pronged rule for classification purposes. Thus, prior to making a classification determination for this particular garment, the following is required as per GRI 2(a): 1) the incomplete or unfinished garment must have the essential character of the completed or finished garment based on some assembly operation that has been done to the garment; or 2) a sufficient number or type of elements should be present to constitute a substantially complete but unfinished product at the time of importation. If either prong is satisfied, the terms of the note are satisfied.
With respect to the first prong, the subject merchandise can be deemed to have the essential character of the completed garment, jacket, pants or skirt, only if some significant assembly operations have taken place joining some of the components of the garments together. We find that at the time of importation there are insufficient assembly operations performed on the different components to warrant finding the essential character as a jacket, pants or skirt. Although there are a number of components which are sewn together to form for example, a completed sleeve or part of a front panel, there are no subassemblies of any of the outer shell panels to other outer shell panels. This “outershell to outershell” subassembly is critical to creating the identity of the garment. Consequently, we find the absence of such a subassembly detracts from a finding of essential character as a jacket, pants or skirt.
In addressing the second prong, that is, that a sufficient number or type of elements be present at the time of importation, the Explanatory Notes to the Commodity Description and Coding System (EN) to GRI 2(a) state, in pertinent part:
(VII) For the purposes of this Rule, “articles presented unassembled or disassembled” means articles the components of which are to be assembled either by means of fixing devices (screws, nuts, bolts, etc.) or by riveting or welding, for example, provided only assembly operations are involved.
No account is to be taken in that regard of the complexity of the assembly method. However, the components shall not be subjected to any further working operation for completion into the finished state.
In the case of the subject garment parts imported from the Dominican Republic, as at the time of importation the subject merchandise is comprised of most of the essential jacket, skirt and pants components, including the lining, it is the opinion of this office that the type of elements which are critical to the subject garment are present. Accordingly, it is the opinion of this office that the subject merchandise consists of an unfinished jacket, skirt and pants classifiable in heading 6204, HTSUS. Similarly, the completed garments are also classifiable in heading 6204, HTSUS.
In the case of the unfinished jacket imported from the Dominican Republic, as the only assembly operations that occur take place in the Dominican Republic, the country of origin of the unfinished jacket is the Dominican Republic. In the case of the completed garments however, as assembly operations occur in both the Dominican Republic and the United States, the terms of the tariff shift are not met and we proceed to paragraph (c)(3).
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 the completed garments, the most important assembly operations occur in the United States, that is, where the garment goes through its final assembly operations, giving rise to the finished tailored garment.
MARKING:
Section 304 of the Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless excepted, every article of foreign origin imported into the United States shall be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article (or its container) will permit, in such a manner as to indicate to the ultimate purchaser in the United States the English name of the country of origin of the article. Part 134 of the Customs Regulations implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304.
Therefore, in the case of the garment components that are imported from the Dominican Republic, only the outermost container must be marked to indicate the country of origin of the components. The country of origin for the components consisting of two or more pieces attached together by sewing or fusing is the Dominican Republic. For those components that are cut, but not sub-assembled in the Dominican Republic, the country of origin is Italy, the country where the fabric was woven. Goods determined to be articles of U.S. origin are not subject to the country of origin marking requirements of 19 U.S.C. 1304. As the garment components become a product of the U.S. (after assembly operations are completed in the U.S.), the finished women’s suit jackets are not subject to the marking requirements. Whether articles may be marked as "Made in the USA" is an issue under the authority of the Federal Trade Commission (FTC). We suggest that you contact the FTC Division of Enforcement, 6th and Pennsylvania Avenue, N.W., Washington, D.C. 20508 on the propriety of proposed markings indicating that articles are made in the U.S.
HOLDING:
The country of origin of the unfinished garments, at the time of importation, is the country in which the assembly occurs, that is the Dominican Republic. The country of origin of the subject completed women’s garments, is the United States. Based upon international textile trade agreements products of the Dominican Republic are subject to quota and 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 Patricia Schiazzano at 212-637-7080.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division