CLA CO:R:C:T 953903 jb

Mr. Alan R. Klestadt, Esq.
Mr. Harold I. Loring, Esq.
Grunfeld, Desiderio, Lebowitz & Silverman
12 East 49th Street
New York, NY 10017

RE: Country of Origin determination for pants and skirts

Dear Mr. Klestadt and Mr. Loring:

This letter is in response to your inquiry of April 16, 1993, on behalf of your client, Cygne Design, Inc., requesting a country of origin determination for pants and skirts. Samples of the finished pants and skirts, i.e., after assembly, as well as samples of the component parts, before assembly, were submitted to this office for examination.

FACTS:

The submitted samples consist of two pairs of pants, one pair unlined and one pair lined, and two skirts, also unlined and lined.

You state that Cygne Design is contemplating a multiple country processing operation whereby bolts of fabric from Europe and/or Asia will be imported into France. In France master markers will be placed on the fabric and components for skirts and pants will be cut. The pants and skirt components from France will then be shipped to Hong Kong or Korea for assembly and finishing.

The two skirt and pants styles in the completed and disassembled condition are as follows:

Unlined Skirt:

The skirt is woven and constructed from three basic panels. There are also ten small textile pieces and twelve small pieces of interlining. The skirt panels which comprise the basic body of the skirt are not rectangles, but rather contoured pieces which are dedicated to use as skirt components. The completed skirt will feature a zipper, back pocket, belt loops, and darts.

Lined Skirt:

The woven lined skirt has the same three basic panels, except in order to form a lining, three corresponding lining pieces are required (and two extra trim pieces). Ten small textile pieces are also needed for this version, as well as twelve small pieces of interlining.

Unlined Pants:

The pants are woven and constructed from four basic panels. There are twenty-nine small textile pieces, including fabric, trim and interfacing. The unlined pants will feature a side zipper, two front pockets, and one back pocket with flap.

Lined Pants:

The woven lined pants are also constructed from four basic panels and have the same features as the unlined version, but in order to form a lining, four corresponding lining pieces are required. As in the unlined version, approximately the same number of small textile pieces including fabric, trim and interfacing are required. ISSUE:

What is the country of origin of the merchandise at issue?

LAW AND ANALYSIS:

Section 12.130 of the Customs Regulations (19 CFR 12.130) sets forth the principles of country of origin for textiles and textile products subject to Section 204 of the Agricultural Act of 1956, as amended (7 U.S.C. 1854).

Pursuant to 19 CFR 12.130(b), the standard of substantial transformation governs the country of origin determination where textiles and textile products are processed in more than one country. The country of origin of textile products is deemed to be that foreign territory or country where the article last underwent a substantial transformation. Substantial transformation is said to occur when the article has been transformed into a new and different article of commerce by means of substantial manufacturing or processing. The factors to be applied in determining whether or not a manufacturing operation is substantial are set forth in 19 CFR 12.130(d). Section 12.130(e)(1) describes manufacturing or processing operations from which an article will usually be considered a product of the country in which those operations occurred.

Section 12.130(e)(1)(v) states that an article will be a product of a particular foreign country, when it has undergone prior to importation into the U.S. in that foreign country:

Substantial assembly by sewing and/or tailoring of all cut pieces of apparel articles which have been cut from fabric in another foreign territory or country, or insular possession, into a completed garment (e.g., the complete assembly of all cut pieces of suit-type jackets, suits and shirts).

We have previously held that cutting of fabric into pattern pieces constitutes a substantial transformation of the fabric, resulting in the apparel pieces becoming a product of the country where the fabric is cut. Customs has also 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 HQ 082747, dated February 23, 1989; HQ 086665, dated March 23, 1990; HQ 951169, dated April 1, 1992; HQ 951437, dated July 17, 1992; HQ 734392, dated August 4, 1992; HQ 953489, dated June 14, 1993; HQ 953698, dated July 19, 1993).

The sewing operation performed in the third country involves the simple assembly of several cut pattern pieces to form either the pants or skirts. The sewing does not involve the complex sewing operation contemplated by Section 12.130(e)(1)(v), as for example, that found in the assembly and tailoring of all cut pieces of suit-type jackets, suits and shirts.

The cutting in France materially changes the fabric into designated garment parts. This constitutes a substantial transformation of that fabric.

HOLDING:

The country of origin of the submitted merchandise is France. It is at the cutting process, in France, that the textile product undergoes a substantial transformation and is transformed into a new and different article of commerce.

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 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, 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