The tariff classification of unisex or women’s knitwear from multiple countries; eligibility for reduced duty status under 9802, HTS; country of origin marking; Treasury Decision (T.D.) 00-44

NY K80411 November 6, 2003 CLA-2-61:RR:NC:TA-359: K80411 CATEGORY: Classification TARIFF NO.: 6109.10.0060, 6110.20.2075, 9802.00.50 Mr. Winston Barrie Antara Corp. P.O. Box 11326 Beverly Hills, California 90213-4236 RE: The tariff classification of unisex or women’s knitwear from multiple countries; eligibility for reduced duty status under 9802, HTS; country of origin marking; Treasury Decision (T.D.) 00-44 Dear Mr. Barrie: In your letter dated October 21, 2003, you requested a ruling on the tariff classification, the eligibility for reduced duty assessment under item 9802.00.50, Harmonized Tariff Schedule of the United States (HTS), and the country of origin marking for three samples of unisex or women’s knitwear. Your samples are returned as requested. You submitted three samples for our review and also one duplicate sample. Style 4407 is a unisex pullover that is made from a 1X1 rib knit, 100% cotton fabric. The pullover has a round, capped neckline; long, capped sleeves and a hemmed bottom. The fabric has more than nine stitches per two centimeters, measured in the direction in which the stitches were formed. Style 3408 is a woman’s tank top that is made from a 2X2 rib knit, 100% cotton fabric. The tank top features a u-shaped neckline in the front and back, two 1 and ½ inch-wide shoulder straps and a hemmed bottom. Style 4400 is a unisex pullover that is made from a 1x1 rib knit, 100% cotton fabric. The pullover features a round, capped neckline; short, hemmed sleeves and a hemmed bottom. The fabric has more than nine stitches per two centimeters, measured in the direction in which the stitches were formed. You also submitted a duplicate of style number 3408, the tank top, to demonstrate the decorative embroidery that is sewn on the three already assembled garments in China. You state that the three styles under consideration are made from yarn that is spun from US produced cotton fibers. That yarn is “woven or knit and finished in the United States.” The resulting fabric is assembled into the three styles in the United States. Finally, the assembled styles are “exported to China for hand embroidery” and then returned to the United States. The applicable subheading for Styles 4407 and 4400, the unisex pullovers, will be 6110.20.2075, Harmonized Tariff Schedule of the United States (HTS), which provides for sweaters, pullovers ---and similar articles, knitted or crocheted: of cotton: other: other: other: women’s. The general duty rate will be 16.9% ad valorem. The applicable subheading for Style 3408, the woman’s tank top, will be 6109.10.0060, HTS, which provides for t-shirts, singlets, tank tops and similar garments, knitted or crocheted: of cotton: women’s: other: tank tops: women’s. The general duty rate will be 17% ad valorem. You request a determination as to whether or not these samples are eligible for a partial duty exemption under subheading 9802.00.50, HTS. This subheading provides for a full or partial duty exemption for articles that are returned to the United States after having been exported to be advanced in value or improved in condition by means of repairs or alterations, provided that the appropriate documentary requirements of 19 CFR 10.8 are met. Section 10.8, Customs Regulations, states that: “Repairs or alterations” means restoration, addition, renovation, re-dyeing, cleaning, re-sterilizing, or other treatment which does not destroy the essential character of, or create a new and commercially different good from, the good that was exported from the United States.” The tariff provision for item 9802.00.50, HTS, reads: Articles returned to the United States after having been exported to be advanced in value or improved in condition by any process of manufacture or other means: Articles exported for repairs or alterations: Other --------------------A duty upon the value of the repairs or alterations. This office believes that the hand embroidery operation that occurs in China qualifies as an acceptable operation under subheading 9802.00.50. The pullovers and the tank top in their condition as exported and returned to the United States have the same use when sold to consumers. The operation in China does not result in the loss of the good’s identity. Neither does it create new and different articles with new and different commercial uses. Thus, the operation in China constitutes an acceptable alteration within the meaning of heading 9802.00.50, HTS, and the samples qualify for the reduced duty status of that provision. You also inquire about the country of origin for marking label purposes on the three samples submitted. The marking statute, Section 304, 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 shall permit. This must be accomplished in such a manner as to indicate to the ultimate purchaser in the United States the name of the country of origin of the article. In Treasury Decision (T.D.) 00-44, published in the Federal Register, Vol.35, No. 133, at pages 42634-42637, July 11, 2000, (effective October 10, 2000), Customs stated that the provisions of the Customs Regulations (C.R.), Section 12.130, would no longer control the determination of the country of origin for marking label purposes of textile apparel and textile products. Instead, even in the case of textile apparel or textile products that are further processed abroad, the controlling statute is the Customs Regulations, Section 102.21. Under your production operations the three samples are manufactured and assembled in the United States. The country of origin marking of apparel that is produced in this manner falls within the jurisdiction of the Federal Trade Commission. If you wish to pursue this question we suggest that you contact that agency directly to ascertain whether your proposed labeling satisfies their requirements. The address is the Federal Trade Commission, Division of Enforcement, 6th Street and Pennsylvania Avenue, N.W., Washington, D.C. 20508. The tank top and the two pullovers fall within textile category designation 339. Based upon international textile trade agreements goods that are produced in the United States and exported for repairs or alterations and which re-enter the United States after the repairs or alterations are performed on them abroad are neither subject to quota restraints not to the requirement of a visa. This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177). 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 646-733-3049. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division