CLA-2 CO:R:C:T 954449 HP
Mr. Ming Chun Wu
President
Minn Poe Industry Co., Ltd.
12, 205 Lane, Min Tsu St.
Hu Ne Village, Hu Nei Hsiang
Kaohsiung Hsien
TAIWAN R.O.C.
RE: Country of origin of woven nylon wallet.
Dear Mr. Wu:
This is in reply to your letter of February 4, 1993. That
letter concerned the country of origin of a nylon wallet.
FACTS:
The merchandise at issue consists of a woven nylon wallet, style
number MP9105. The following table sets forth the manufacturing
processes:
Factors Country A (Taiwan) Country B (China)
*Physical Change 1. Fabric woven
in Article 2. Fabric cut into Pieces assembled into
10 pieces, including finished product.
front & back panels,
pockets.
*Time Expended 1. 1 min/yd for 15 minutes/piece
(per unit) weaving fabric.
2. 3 min/pc cutting
3. 0.5 min printing
4. 0.8 min pressing
5. 3 min inspection,
folding & ironing
6. 3 min packing *Complexity 1. Weaving Assembly by sewing
2. Cutting into
components
3. Printing
4. Pressing
5. Inspection
& Folding
6. Packing
*Skill or 1. 8-10 skilled workers 1. 1-3 skilled workers
technology 2. Weaving/dying machine 2. Sewing machines
3. Computer marker
packing machine &
plotter machine
4. Cutting machine
5. Printing machine
6. Ironing machine
7. Packaging machine
*Value Added 1. 30›/pc after weaving 1. 13›/pc after
2. 13›/pc after cutting assembly
3. 6›/pc after printing
4. 8›/pc after pressing
and packaging
5. 24›/pc after accessory
ISSUE:
What is the country of origin of the wallet for quota/visa
purposes?
LAW AND ANALYSIS:
Textile commodities produced in more than one foreign country
are subject to the country of origin requirements delineated in
section 12.130 of the Customs Regulations (19 C.F.R. 12.130).
These regulations provide that:
. . . a textile product . . . which consists of materials produced
or derived from, or processed in, more than one foreign . . .
country shall be a product of that foreign . . . country where it
last underwent a substantial transformation.
12.130(b). A textile product undergoes a substantial
transformation when it is ". . . transformed by means of
substantial manufacturing or processing operations into a new and
different article of commerce." Section 12.130 of the regulations outlines the criteria used to
determine the country of origin for textiles and textile products.
Specifically, this provision of the regulations is considered in
determining whether a textile product has undergone substantial
manufacturing or processing operations, and what constitutes a new
and different article of commerce. The factors considered are not
exhaustive. In fact, "one or any combination of criteria may be
determinative, and additional factors may be considered." In
determining whether merchandise has undergone substantial
manufacturing or processing operations, we consider the (1)
physical change in the material or the article; (2) time involved;
(3) complexity of the operations; (4) level or degree of skill
and/or technology required; and (5) value added to the article in
each country.
Customs has repeatedly held that the cutting of fabric into
specific patterns and shapes suitable for use in an assembly
operation constitutes a substantial transformation. See HRL 555189
of June 12, 1989; HRL 554027 of January 13, 1987; HRL 554025 of
December 16, 1986. Therefore, we find that the materials which
will be used to create the wallet will become new and different
articles of commerce as a result of the operations performed in
Taiwan (Country A). The assembly operations performed in China,
however, do not constitute a substantial transformation of the pre-cut components. Customs has long held that the mere assembly of
parts will not necessarily constitute a substantial transformation.
C.S.D. 80-111 (Sept. 24, 1980). See also HRL 087439 of October 30,
1990 (assembly of portfolio components insufficient to confer
country of origin.
Taking the above rulings into consideration, it is apparent that
the instant operations to be performed in China constitute simple
assembly operations on pre-cut components which do not amount to a
substantial transformation. Accordingly, the wallets will be
considered products of Taiwan.
HOLDING:
As a result of the foregoing, the instant merchandise is
considered a product of Taiwan.
The holding in this ruling applies only to the specific factual
situation and merchandise identified in the ruling request. This
position is clearly set forth in 177.9(b)(1), Customs Regulations (19
C.F.R. 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 C.F.R. 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. In such a case, it
is recommended that a new ruling request be submitted in accordance
with 177.2, Customs Regulations (19 C.F.R. 177.2).
A copy of this ruling letter should be attached to the entry
documents filed at the time this merchandise is imported. If the
documents have been filed without a copy, this ruling should be
brought to the attention of the Customs officer handling the
transaction.
Sincerely,
John Durant, Director
Commercial Rulings Division