CLA-2 CO:R:C:T 955943 jb
S. Richard Shostak, Esq.
Stein, Shostak, Shostak & O'Hara
3580 Wilshire Boulevard, Suite 1240
Los Angeles, CA. 90010-2597
RE: Country of Origin determination for men's knit shirts
Dear Mr. Shostak:
This letter is in response to your inquiry of
February 17, 1994, on behalf of your client, Glint, Inc.,
requesting a country of origin determination for five styles of
men's knit shirts. Samples of the completed shirts were
submitted to this office for examination and will be returned
under separate cover.
FACTS:
All of the garments at issue are composed of 65 percent
polyester/35 percent cotton knit fabric of Taiwanese origin. In
all cases the fabric will be cut into component pieces in Taiwan
and then shipped to the People's Republic of China for assembly
by sewing, ironing, folding and packing before exportation to the
United States. The five samples submitted are described as
follows:
1. Style number 42566
Style number 42566 features a partial frontal opening and
button closure, a collar, a breast pocket with a single
button closure, short sleeves and a straight hemmed bottom.
Before assembly in China, the fabric is knit, dyed and cut
into 13 components in Taiwan.
2. Style number 42550
Style number 42550 features a partial frontal opening and
button closure, a collar, a breast patch pocket, short
sleeves and a straight hemmed bottom. Before assembly in
China, the fabric is knit, dyed and cut into 11 components
in Taiwan.
3. Style number 42565
Style number 42565 features a partial frontal opening and
button closure, a collar of ribbed knit fabric, a breast
pocket, short sleeves with ribbed knit cuffs and a straight
hemmed bottom. Before assembly in China, the fabric is
knit, dyed and cut into 12 components in Taiwan.
4. Style number 42567
Style number 42567 features a partial frontal opening and
button closure, a collar, a breast patch pocket with a
single button closure, short sleeves and a straight hemmed
bottom. Before assembly in China, the fabric is knit, dyed
and cut into 11 components in Taiwan.
5. Style numbers 42568 and 42569
Style numbers 42568 and 42569 feature a partial frontal
opening and button closure, a collar, a breast patch pocket
with a single button closure, long sleeves with ribbed knit
cuffs and a straight hemmed bottom. Before assembly in
China, the fabric is knit, dyed and cut into 13 components
in Taiwan.
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 (See HQ 955125, dated January 27, 1994,
HQ 953697, dated July 26, 1993 and HQ 952531, dated November 25,
1992, addressing the country of origin determination for similar
merchandise). 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 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 China involves the simple
combining and assembly of component pieces to form the front and
back panels, sleeves, collar and cuffs. It 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.
Accordingly, as the cutting in Taiwan changes the fabric
into designated garment parts, this constitutes a substantial
transformation of that fabric and confers country of origin.
HOLDING:
The country of origin of the submitted merchandise,
referenced by style numbers 42566, 42550, 42565, 42567, 42568 and
42569, is Taiwan. It is at the cutting process, in Taiwan, that
the textile products undergo a substantial transformation and are
transformed into new and different articles 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