CLA-2 CO:R:C:G 084979 PR

Mr. Peter W. F. Wu
Moderntex International Inc.
39-41 Hankow Road
Tsim Sha Tsui
Kowloon, Hong Kong

RE: Country of Origin of a T-Shirt

Dear Mr. Wu:

This ruling is in response to your letter of June 20, 1989, concerning the country of origin of certain T-shirts for quota and export license purposes.

FACTS:

Three pieces of the subject T-shirts are being fabricated in China--the body of the garment consisting of front and back panels joined together at the shoulders with capping forming a finished neck opening, and two cut-to-length pieces of fabric that will form the short sleeves. These parts are shipped to Hong Kong where (1) the side seams are stitched together, (2) the sleeves are attached, (3) the bottom is hemmed, and (4) the shirts are packed for shipment to the United States.

ISSUE:

The issue presented is whether the processing in Hong Kong is sufficient to cause the subject shirts to be products of Hong Kong for quota and export license purposes.

LAW AND ANALYSIS:

Section 12.130, Customs Regulations (19 CFR 12.130) provides, in pertinent part, as follows:

(b) Country of origin. For the purpose of this section * * * a textile or textile product, subject to section 204, Agricultural Act of 1956, as amended, imported into the customs territory of the United States shall be a product of a particular foreign territory or country, or insular possession of the U.S., if it is wholly the growth, product, or manufacture of that foreign territory or country, or insular possession. However, * * * a textile or textile product, subject to section 204, which consists of materials produced or derived from, or processed in, more than one foreign territory or country, or insular possession of the U.S., shall be a product of that foreign territory or country, or insular possession where it last underwent a substantial transformation. A textile or textile product will be considered to have undergone a substantial transformation if it has been transformed by means of substantial manufacturing or processing operations into a new and different article of commerce.

* * *

(d) Criteria for determining country of origin. The criteria in paragraphs (d)(1) and (2) of this section shall be considered in determining the country of origin of imported merchandise. These criteria are not exhaustive. One or any combination of criteria may be determinative, and additional factors may be considered.

(1) A new and different article of commerce will usually result from a manufacturing or processing operation if there is a change in: (i) Commercial designation or identity, (ii) Fundamental character or (iii) Commercial use. (2) In determining whether merchandise has been subjected to substantial manufacturing or processing operations, the following will be considered: (i) The physical change in the material or article as a result of the manufacturing or processing operations in each foreign territory or country, or insular possession of the U.S. (ii) The time involved in the manufacturing or processing operations in each foreign territory or country, or insular possession of the U.S. (iii) The complexity of the manufacturing or processing operations in each foreign territory or country, or insular possession of the U.S. (iv) The level or degree of skill and/or technology required in the manufacturing or processing operations in each foreign territory or country, or insular possession of the U.S. (v) The value added to the article or material in each foreign territory or country, or insular possession of the U.S., compared to its value when imported into the U.S.

HOLDING:

In applying the standards set out in Section 12.130, Customs Regulations, we find that the processing in Hong Kong is neither substantial nor results in a new article of commerce. Accordingly, for quota, visa, and export license purposes, the subject T-shirts are products of China.

Sincerely,

John Durant, Director
Commercial Rulings Division