The tariff classification and country of origin determination for a women’s knit to shape upper body garment; Section 102.21(c)(3) Customs Federal Regulations

 N307513 November 20, 2019 CLA-2-61:OT:RR:NC:N3:359 CATEGORY: Classification TARIFF NO.: 6110.20.2079 Mr. Paul F. Fitzpatrick Noatum Logistics formerly known as MIQ Logistics 8550 W. Bryn Mawr Suite 400 Chicago, IL 60631 RE: The tariff classification and country of origin determination for a women’s knit to shape upper body garment; Section 102.21(c)(3) Customs Federal Regulations Dear Mr. Fitzpatrick: In your letter dated November 9, 2019, you requested a tariff classification and country of origin determination on behalf of your client, Lands’ End, Inc. As requested, your samples will be returned. You submitted a sample of style 492821, a women’s cardigan. In addition, samples of the component panels of the cardigan were included in the submission, which include front and back panels, and sleeve panels from which the cardigan is to be assembled. Style 492821 is a women’s cardigan constructed from 60 percent cotton, 40 percent modal knit fabric. The outer surface of the garment’s fabric measures more than nine stitches per two centimeters in the direction the stitches were formed. The cardigan features a V shaped front neckine, a full front opening with six button closures, two name-badge eyelets on the upper left front panel, long sleeves with finished rib knit cuffs, and a peplum sweep style rib knit bottom extending to below the waist. All of the principal component panels of the cardigan (the “major parts”), i.e. the front and back panels, and the sleeve panels, are considered to be knit to shape for the purpose of determining the country of origin. The manufacturing operations for the women’s cardigan are as follows:  Macau         All components are knit to shape        China all panels of the cardigan are assembled The applicable subheading for style 492821 will be 6110.20.2079, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Sweaters, pullovers, sweatshirts, waistcoats (vests) and similar articles, knitted or crocheted: Of Cotton: Other: Other: Other: Women’s or girls’: Other. The rate of duty is 16.5 percent ad valorem. 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Section 334 of that Act (codified at 19 U.S.C. 3592) provides new rules of origin for textiles and apparel entered, or withdrawn from warehouse, for consumption, on and after July 1, 1996.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 requirements6101-6117. If the good is knit to shape, a change to heading 6101 through 6117 from any heading outside that group, provided that the knit to shape components are knit in a single country, territory or insular possessionSection 102.21(e) states that the good must undergo a tariff shift from a heading outside of the designated grouping (i.e. headings 6101-6117). As the cardigan of heading 6110 and the component panels of heading 6117 are all classified inside of the designated grouping, they fail to meet the tariff shift requirement and therefore, Section 102.21(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. As the subject merchandise is knit to shape in a single country, viz. Macau, Section 102.21(c)(3) applies. The country of origin of the women’s knit to shape cardigan, style 492821 is Macau and therefore should be properly marked “Made in Macau”. Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the World Wide Web at https://hts.usitc.gov/current. 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 Renée Orsat at [email protected] Sincerely, Steven A. Mack Director National Commodity Specialist Division