CLA-2 CO:R:C:T 952046 CC
John Carver
President
B.C.I. (U.S.A.) Inc.
122 W. First St., Ste. 202
Port Angeles, WA 98362
RE: Country of origin of jeans
Dear Mr. Carver:
This letter is in response to your inquiry of June 18, 1992,
requesting a country of origin determination for 100 percent
cotton denim jeans.
FACTS:
According to your submissions, denim, buttons, thread, and
pocketing, all of Hong Kong origin, will be sent to Mongolia. In
Mongolia, the fabric is cut into pieces, which are then assembled
to produce the jeans. The jeans are shipped to China where they
are washed and packed before being sent to the United States.
You have provided the following costs associated with materials
and production of the jeans in each country: Hong Kong -
32 dollars per dozen, Mongolia - 10 dollars per dozen, and
China - 8 dollars per dozen.
ISSUE:
What is the country of origin for the merchandise at issue?
LAW AND ANALYSIS:
For country of origin purposes, Section 12.130 of the
Customs Regulations (19 CFR 12.130) is applicable to the
merchandise at issue. Section 12.130(b) of the Customs
Regulations 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. A 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.
Section 12.130(d) of the Customs Regulations sets forth
criteria in determining whether a substantial transformation of a
textile product has taken place. This regulation states that
these criteria are not exhaustive; one or any combination of
criteria may be determinative, and additional factors may be
considered.
Section 12.130(d)(1) states that 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.
Section 12.130(d)(2) of the Customs Regulations states that
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.
Section 12.130(e)(1) of the Customs Regulations provides the
following:
An article or material usually will be a product of
a particular foreign territory or country, or insular
possession of the U.S., when it has undergone prior to
importation into the U.S. in that foreign territory or
country, or insular possession any of the following:
(iv) Cutting of fabric into parts and the assembly of
those parts into the completed article.
In Mongolia fabric is cut into pieces, which are assembled
to produce the jeans at issue. In application of Section
12.130(e)(1)(iv) of the Customs Regulations, the merchandise at
issue is substantially transformed in Mongolia. The processes
performed in China on the jeans, washing and packing, are
finishing operations; they are not considered substantial
manufacturing operations. Consequently, the last substantial
transformation for the merchandise at issue takes place in
Mongolia.
HOLDING:
The country of origin of the merchandise at issue is
Mongolia.
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 of 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