HQ 959309: Country of origin determinations; 5-pocket denim jeans;Section 102.21, Customs Regulations.

Native CBP ruling rendition. Applicability is fact-specific; modification/revocation relationships and original publisher date are retained. Publisher sentinel year0001 means unknown date, not a historical legal adoption.

                            HQ 959309
                          June 24, 1996
CLA-2 RR:TC:TE 959309 SK

CATEGORY: Classification

Donald S. Stein
Manatt Phelps Phillips
1501 M Street, N.W.
Suite 700
Washington, D.C. 20005-1702

RE:  Country of origin determinations; 5-pocket denim jeans;
Section 102.21,     Customs Regulations.

Dear Mr. Stein:

     This is in response to your inquiry of June 3, 1996,
requesting a country of origin determination for 5-pocket denim
pants pursuant to Section 102.21, Customs Regulations.  In your
submission, you describe two different manufacturing scenarios
used to produce the subject merchandise.  A sample of the
finished garment was submitted to this office for examination.

FACTS:

     At issue is the country of origin of a 5-pocket denim
trouser.  The subject merchandise is made of 100 percent woven
cotton denim.  The pants feature five pockets (two rear, one coin
and two front welt pockets), a five-button fly (with shank
buttons) and are styled in the overall traditional manner of
denim jeans.  

     We note two discrepancies between the written description of
the manufacturing processes these garments undergo, and the
actual sample submitted to this office.  Specifically, you state
that the subject trousers undergo "pleating" in China and
"setting of zipper" in Hong Kong.  As the sample submitted to
Customs 


                              - 2 -

does not possess either of these features, we will discount these
processes from our consideration.  

     You have presented this office with two different
manufacturing scenarios by which the subject merchandise will be
produced.  They are described as follows:

                            SCENARIO 1
HONG KONG AND CHINA

Fabric formed

HONG KONG

Fabric cut

CHINA

1) Overlock stitch right and left coin pocketing for front panel;

2) Sewing of front pocket and pocketing (or welt pocket);

3) Pleating (for twill pants only)

[Note: Customs will not take this operation into consideration
inasmuch as it does not apply to the sample submitted to this
office.]

4) Sewing of yoke seam, patch pocket for back panel;

5) Setting of pockets.

HONG KONG

1) Setting of zipper;

[Note: Customs will not take this operation into consideration
inasmuch as it does not apply to the sample submitted to this
office.]

2) Seam front fly;

3) Sewing of back and front rises;

                              - 3 -

4) Linking of side seam;

5) Linking of inseam;

6) Hemming

7) Linking waistband and label.

CHINA

1) Bartacking, creation of  button holes and setting of belt
loops;

2) Trimming of thread ends;

3) Garment wash;

4) Rivets and shank buttoning;

5) Checking;

6) Ironing;

7) Packing.

                            SCENARIO 2

     Scenario 2 is identical to Scenario 1 except that the fabric
is cut in China.

ISSUE:

     What is the country of origin for the denim trousers in the
two manufacturing scenarios presented?

LAW AND ANALYSIS:

     Pursuant to the Uruguay Round Agreements Act, new rules of
origin will be 
effective for textile or apparel products entered, or withdrawn
from warehouse for consumption, on or after July 1, 1996.  These
rules were published in the Federal Register, 60 Fed. Reg. 46188
(September 5, 1995).  Section 102.21, Customs 


                              - 4 -

Regulations (19 CFR Section 102.21), sets forth the general rules
which determine country of origin.  The country of origin of a
textile or apparel product will be determined by a hierarchy of
rules set forth in paragraphs (c)(1) through (c)(5) of Section
102.21.  

     Section 102.21(c)(1) sets forth the general rule for
determining the country of origin of a textile or apparel product
in which the good is wholly obtained or produced in a single
country, territory, or insular possession.  

     Section 102.21(c)(2) provides for instances where the
country of origin of a textile or apparel product cannot be
determined under Section 102.21(c)(1).  Section 102.21 (c)(2)
provides:

          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 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.

     Section 102.21(c)(3) governs instances where the country of
origin of a textile or apparel product cannot be determined
pursuant to paragraphs (c)(1) or (c)(2) and where the subject
merchandise consists of either a good that was knit to shape in a
single country or, except for goods of certain specifically
enumerated headings, if the good was not knit to shape and was
wholly assembled in a single country.

     Section 102.21, paragraph (b)(6), defines "wholly assembled"
as follows:

          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.


                              - 5 -

     Section 102.21(c)(4) provides:

          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 manufacturing scenarios set forth above, Section
102.21(c)(1) does not provide the relevant country of origin
analysis because the subject merchandise is not 
wholly obtained or produced in a single country.

     The denim trousers are classifiable under either heading
6203 or 6204, Harmonized Tariff Schedule of the United States
Annotated (HTSUSA), depending upon whether they are men's or
women's denim trousers.  Accordingly, Section 102.21(c)(2)
directs us to paragraph (e) of this section which states, in
pertinent part, that origin is conferred in the following
situations:

6201-6208 (1) 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.
          
     Section 102.21(c)(2) does not provide the relevant analysis
in either manufacturing scenario described above inasmuch as the
trousers were not wholly assembled in a single country. 
Accordingly, our hierarchical application of Section 102.21(c)
continues.

     Section 102.21(c)(3) does not provide the relevant country
of origin analysis inasmuch as the subject garments are not knit
to shape goods and, as stated above,  they did not undergo
assembly in a single country, territory, or insular possession.

     Section 102.21(c)(4), which looks to the country, territory,
or insular possession in which the most important assembly or
manufacturing process occurred as conferring origin, provides the
determinative analysis in both manufacturing scenarios described
above.  In both Scenarios 1 and 2, the most important assembly
operation takes place in Hong Kong as that is where the assembly
of all the component pieces occurs except for the attachment of
the pockets, sewing of the 


                              - 6 -

back yoke, attachment of the belt loops and the performance of
various other minor operations and finishing operations. 
Therefore, pursuant to Section 102.21(c)(4), the country of
origin of the trousers at issue in both Scenarios 1 and 2 is Hong
Kong.

     In your submission to this office, you request that Customs
confirm that any goods produced in Hong Kong utilizing Hong
Kong's Outward Processing Arrangement will be deemed to be
presumptively of Hong Kong origin for purposes of Section 102.21,
Customs Regulations.  Customs cannot make such a confirmation. 
Each request for a country of origin determination is made on a
case by case basis, which allows Customs to carefully consider
the particulars of individual manufacturing scenarios.  Pursuant
to the Uruguay Round Agreements Act, for textile or apparel
products entered, or withdrawn from warehouse for consumption, on
or after July 1, 1996, Customs will base its country of origin
determinations on U.S. law only, specifically Section 102.21,
Customs Regulations.  

HOLDING:

     In both Scenarios 1 and 2, the country of origin of the 5-pocket denim trousers is Hong Kong pursuant to Section
102.21(c)(4), Customs Regulations. 

     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 is issued
on the assumption that all of the information furnished in the
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