CLA 2-RR:NC:TA:354 G81421
Ms. Becky Tong
Ka Bon Garment Factory Ltd.
Estrada Marginal Da Areia Preta No. 45
Edificio Centro Polytex "4" Andar "F", Macau
RE: Country of origin determination for men's boxer shorts; 19 C.F.R. 102.21 (c)(4); most important assembly or manufacturing process.
Dear Ms. Tong:
This is in reply to your letter dated September 19, 2000, requesting a country of origin determination of men's boxer shorts which will be imported into the United States. A sample was submitted to this office for examination.
FACTS:
The subject garment, referenced style number 105041 is men's woven cotton boxer shorts. The boxer shorts feature an exposed elasticized waistband with "Nautica" embroidered at equal intervals on the outer surface, a fly front and hemmed leg openings with a two inch vent on the outer side seam. You have indicated that the same boxer shorts will also be available under style numbers 105141, 105341, 104041, 992741 and 104541 though no samples of these styles were submitted for examination.
You have indicated that the manufacturing operations are as follows:
CHINA (Part 1)
woven cotton fabric is formed.
MACAU (Part 1)
elastic waistband is formed.
CHINA (Part 2)
fabric is cut into component pieces;
open front fly is sewn;
left and right front panels are joined;
left and right back panels are joined.
MACAU (Part 2)
side seams are sewn;
side vents are sewn;
elastic waistband is joined to shorts body;
inseam is sewn;
bottom hem is sewn;
labels are sewn.
ISSUE:
What are the classification and country of origin of the subject merchandise?
CLASSIFICATION:
The applicable subheading for all styles will be 6207.11.0000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Men's or boys' underpants, briefs, nightshirts, pajamas, bathrobes, dressing gowns and similar articles: underpants and briefs: of cotton. The duty rate will be 6.3 percent ad valorem.
All styles fall within textile category designation 352. 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":
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.
Paragraph (b)(6) of section 102.21 defines the term “wholly assembled” as:
The term “wholly assembled” when used with reference to a good means that all components, of which there must be at least two, preexisted in essentially the same condition as found in the finished good and were combined to form the finished good in a single country, territory, or insular possession. Minor attachments and minor embellishments (for example, appliques, beads, spangles, embroidery, buttons) not appreciably affecting the identity of the good, and minor subassemblies (for example, collars, cuffs, plackets, pockets), will not affect the status of a good as “wholly assembled” in a single country, territory, or insular possession.
The subject merchandise is classified as men’s underpants in heading 6207, Harmonized Tariff Schedule of the United States (HTSUS). As the subject merchandise undergoes assembly operations in both China and Macau that go beyond “minor attachments, minor embellishments and minor subassemblies”, it does not qualify as “wholly assembled” in a single country. As such paragraph (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, 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 subject men’s boxer shorts, the most important assembly process occurs at the time the side seams and side vents are sewn, the elastic waistband is joined to the body, the inseam is sewn, the bottom hem is sewn and the labels are sewn. Accordingly, the country of origin of the subject merchandise is the country in which those operations occur, that is, Macau.
HOLDING:
The country of origin of the subject boxer shorts is Macau. Based upon international textile trade agreements products of Macau are subject to 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 Brian Burtnik at 212-637-7083.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division