CLA-2 CO:R:C:T 951437 SK
Judith A. Schechter
Grunfeld, Desiderio, Lebowitz & Silverman
12 East 49th Street
New York, N.Y.
RE: Country of origin of women's pants; 75% polyester/25% cotton;
fabric woven and printed or dyed in Taiwan; fabric cut into
component pieces in Singapore; assembly by sewing in
Malaysia; packaging in Singapore; 19 CFR 12.130; mere
assembly not substantial transformation.
Dear Ms. Schechter:
This is in response to your letter of March 27, 1992, on
behalf of your client, Orit Imports, Inc., requesting the country
of origin of two styles of women's pants. Samples of the
completed articles, as well as samples of their constituent
parts, have been submitted to this office for examination.
FACTS:
The articles at issue are identified as styles "Grand" and
"Signiture" ("Missy Pants") and are made from 75% polyester and
25% cotton. The pants feature a wide elasticized waistband with
the rib on the outside of the band and two front pockets. The
bottoms of the pant legs are hemmed but not elasticized. Both
pants resemble sweat pants in appearance and fit.
The fabric for these garments will be woven and printed or
dyed in Taiwan with no lines of demarcation. The fabric will be
sent to Singapore where it will be cut into garment components.
The components and trim (i.e., labels) will be sent to Malaysia
for assembly by sewing. The finished garments will be returned
to Singapore for packaging and export to the United States.
The relative costs of the various production operations for
style "Signiture" are as follows:
Piece Goods (Taiwan) 54%
Cutting (Singapore) 6%
Sewing (Malaysia) 19%
- 2 -
Packaging (Singapore) 6%
Accessories (Taiwan) 12%
Profit (Singapore) 3%
__________
100%
The relative costs of the various production operations for
style "Grand" are as follws:
Piece Goods (Taiwan) 54%
Cutting (Singapore) 6%
Sewing (Malaysia) 19.5%
Packing (Singapore) 6%
Accessories (Taiwan) 11.5%
Profit (Singapore) 3%
__________
100%
ISSUE:
What is the country of origin of the subject merchandise?
LAW AND ANALYSIS:
Section 12.130(b) of the Customs Regulations (19 CFR
12.130(b)) provides that a textile product that is processed in
more than one country or territory shall be a product of that
country or territory where it last underwent a substantial
transformation. Your attention is directed to Section
12.130(e)(v) of the Customs Regulations which states that an
article will usually have undergone a substantial transformation
(change in country of origin) if it has undergone a substantial
assembly of all cut pieces into a completed garment.
Customs has long held that the mere assembly of goods,
entailing simple combining operations, trimming or joining
together by sewing, is not enough to substantially transform the
components of an article into a new and different article of
commerce. See Headquarters Ruling Letter (HRL) 082747, dated
February 23, 1989, in which Customs determined that the assembly
of jeans was not a substantial transformation and HRL 082787,
dated March 9, 1989, which reached a similar conclusion with
regard to a jogging suit.
The assembly process in Malaysia involving the sewing
together of components cut from fabric in Singapore does not
involve sufficient skill or complexity to constitute a
substantial transformation as defined by the regulations set
forth supra. The country of origin of these articles is
- 3 -
Singapore as that is where the piece goods were cut into specific
parts and where the articles last underwent a substantial
transformation.
HOLDING:
The country of origin of the subject merchandise is
Singapore.
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
177.9(b)(1), Customs Regulations (19 CFR 177.9(b)(1). This
section states that a ruling letter is issued on the assumption
that all the information furnished in connection with the ruling
request and incorporated in the ruling letter, either directly,
by reference, or by implication, is accurate and complete in
every material respect. Should it subsequently be 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, it is recommended that a new
ruling request be submitted in accordance with section 177.2,
Customs Regulations (19 CFR 177.2).
Sincerely,
John Durant, Director
Commercial Rulings Division