Country of origin determination for knit shirts; 19 CFR102.21(c)(2); tariff shift rule

HQ 959310 June 17, 1996 CLA-2 RR:TC:TE 959310 jb CATEGORY: Classification Cristina B. Mendoza Monique Fashion Incorporated # 3-A Road 1 Highway Hills Mandaluyong City Philippines RE: Country of origin determination for knit shirts; 19 CFR 102.21(c)(2); tariff shift rule Dear Ms. Mendoza: This is in reply to your letter dated June 6, 1996, requesting a country of origin determination for certain knit shirts which will be imported into the United States sometime on or after July 1, 1996. A sketch was submitted to this office illustrating the manufacturing operations. FACTS: The submitted merchandise consists of knit shirts composed of 100 percent cotton fabric. The manufacturing operations are as follows: Hong Kong Philippines - cotton yarn is sourced; - sewing of all cut parts; - knitting; - washing; - weaving; - button holing and sewing on buttons; - dyeing and finishing; - pressing; - cutting; - packing. - embroidery; - printing. ISSUE: What is the country of origin of the subject merchandise? LAW AND ANALYSIS: On December 8, 1994, the President signed into law the Uruguay Round Agreements Act. Section 334 of that Act provides new rules of origin for textiles and apparel entered, or withdrawn from warehouse, for consumption, on and after July 1, 1996.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 material 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) 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": 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. The subject knit shirts are classified in subheading 6105, HTSUSA, or 6106, HTSUSA, depending on whether they are men's or women's knit shirts, respectively. As the subject knit shirts are not knit to shape, consist of more than two component parts, and are wholly assembled in a single country, that is, the Philippines, country of origin is conferred by the Philippines. HOLDING: The country of origin of the subject knit shirts is the Philippines. 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. 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 Sincerely, John Durant, Director Tariff Classification Appeals Division