us-cbp-cross-rulings-hq-959425•HQ 959425: Country of origin determination for a romper; 19 CFR102.21(c)(4); most important assembly
HQ 959425: Country of origin determination for a romper; 19 CFR102.21(c)(4); most important assembly
us-cbp-cross-rulings-hq-959425HQ 959425: Country of origin determination for a romper; 19 CFR102.21(c)(4); most important assemblyGuidance
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 959425
August 21, 1996
CLA-2 RR:TC:TE 959425 jb
CATEGORY: Classification
Manatt Phelps Phillips
Donald S. Stein, Esq.
1501 M Street, N.W., Suite 700
Washington, D.C. 20005
RE: Country of origin determination for a romper; 19 CFR
102.21(c)(4); most important assembly
Dear Mr. Stein:
This is in reply to your letter dated July 2, 1996, on
behalf of your client, the Tarrant Apparel Group (dba Fashion
Resource), requesting a country of origin determination for a
romper. A sample was submitted to this office for examination.
FACTS:
The subject merchandise is a 100 percent cotton romper
consisting of three main parts: the bodice, shorts and seven
fabric panels sewn together at the waistline. The additional
panels encircle the shorts but do not completely obscure them.
The romper also features a round neckline, a partial opening at
the neck with a five button closure ending at the waist, no
sleeves (2-1/2 inch straps), a three button fly front, two pieces
of self fabric back ties, and short pant legs.
The manufacturing operations, using fabric formed in Hong
Kong and China, are as follows:
Scenario I
CHINA
- cutting of the component pieces;
- cutting bias for front neck and armhole;
- joining together the four pieces of the top front panels
and then top stitching;
- joining together the three pieces of the top back panels
and then top stitching;
- joining together the four front wrap panels and then top
stitching;
- joining together the three back wrap panels and then top
stitching;
- forming the fly front and attaching to the short portion
and top stitching, then joining the front rise;
- joining the back rise and side seam and inseam of the
shorts and sewing hem;
- joining the front and back wrap panels together, then
hemming the front edge and bottom;
- sewing the self fabric back ties and hemming the back yoke
facing;
- overlock and top stitch the inside placket.
HONG KONG
- joining the side seam of bodice and putting together with
self fabric back ties;
- sewing front neck bias ( separate piece of fabric running
along the neck ) and armhole bias (separate piece of fabric
running along the armholes), then joining back yoke
facing to back panel, sewing the shoulder seam and joining the
inside placket;
- overlocking the top body (bodice) together with bottom
(shorts) and wrap, thereby joining the bodice, shorts and
wrap together, then top stitch.
CHINA
- putting button hole on the placket and the fly;
- washing;
- cutting threads;
- inspecting;
- pressing;
- putting on buttons;
- attaching the hook and trimming the thread on the garment;
- final inspection;
- packing.
Scenario II
All of the operations are identical except that the joining
of the back rise, side seam, inseam and hem of the shorts portion
are done in Hong Kong. Additionally, the joining of the front
and back wrap panels, and the hemming of the front edge and
bottom occurs in Hong Kong.
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 (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 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":
6210-6212 If the good consists of two or more
component parts, a change to an assembled
good of heading 6210 through 6212 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 classifiable in heading 6211,
Harmonized Tariff Schedule of the United States (HTSUS). As the
subject merchandise undergoes assembly operations in both China
and Hong Kong 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.
Paragraph (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 not knit, and the merchandise
is not 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 scenario I, the joining of
the top front panels together and then top stitching, joining the
top back panels together and then top stitching, joining the
front wrap panels together and then top stitching, joining the
back wrap panels together and then top stitching, joining the
front rise, joining the back rise, side seam and inseam of the
shorts portion, and joining the front and back wrap, constitutes
the most important assembly process. Accordingly, country of
origin is conferred by the single country in which those
operations take place, that is China. In the case of scenario
II, the joining together of the back rise, side seam, inseam and
hem of the shorts portion, joining the front and back wrap panels
together, hemming the front edge and bottom of the wrap, joining
the side seams of the bodice and putting together with self-fabric ties, sewing on the front neck bias and armhole bias,
joining the back yoke facing to back panel, sewing the shoulder
seam, joining the inside placket, and overlocking the bodice
together with the shorts and wrap, constitutes the most important
assembly process. Accordingly, country of origin is conferred by
the single country in which those operations take place, that is,
Hong Kong.
In your submission you request that Customs confirm that any
goods produced in Hong Kong utilizing Hong Kong's Outward
Processing Arrangement will be deemed 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 Section 334 of
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
determination on U.S. law only, specifically Section 102.21,
Customs Regulations.
Additionally, you state that although Customs has declined
to define the term "most important" in referring to the most
important assembly or manufacturing process, Customs does agree
that the joining of all components of a good in one country would
always be as important as the joining of components into a
subassembly. In response to this statement it should be noted
that what is deemed to be important, or in this case most
important, in reference to the joining of components of a good,
depends upon one's interpretation of "subassembly" and
"assembly" for purposes of applying the origin regulations. In
the case of scenario I, this office does not regard the assembly
operations that occur in China as mere "subassemblies". As
such, in scenario I, the country of origin in conferred in China.
HOLDING:
In scenario I the country of origin of the subject romper is
China.
In scenario II the country of origin of the subject romper
is Hong Kong.
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 sections 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
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