CLA-2 CO:R:C:T 956728 SK
Jenny Feng
Sung Kiang Industrial Co., Ltd.
1Fl., No. 15, Lane, 46, Ching Cheng St.
Taipei, Taiwan
Republic of China
RE: Country of origin determination for a women's tank top; fabric
knit, dyed and cut in Taiwan; simple assembly in China; 19 CFR
12.130(b)(d)(e); cutting constitutes substantial transformation.
Dear Ms. Feng:
This is in response to your letter of June 27, 1994,
requesting a country of origin determination for a women's tank-
style top. A sample of the finished garment, plus a bundle
consisting of the garment's constituent parts, were submitted to
this office for examination.
FACTS:
You have requested a country of origin determination for a
women's 65 percent polyester/35 percent cotton jersey knit tank-
style top (referenced style numbers 97507/97508). The tops are
either in solid colors, or feature a print. The sleeveless upper
body garment is designed in a tank top style and features double
needle stitching around the neckline, armholes and shirttail bottom
hem. The top also features a six button placket on the front.
The fabric for the subject garment is knit, dyed and cut into
piecegoods in Taiwan. In China, the garment's four component parts
are assembled into the completed article, the buttons are sewn on,
and the garment is labeled, trimmed, ironed, inspected, and packed
for shipment to the United States.
ISSUE:
What is the country of origin for styles 95707/95708?
LAW AND ANALYSIS:
Country of origin determinations for textile products are
subject to Section 12.130 of the Customs Regulations (19 CFR
12.130). Section 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. 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;
(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;
(ii) The time involved in the manufacturing or processing;
(iii) The complexity of the manufacturing or processing;
(iv) The level or degree of skill and/or technology
required in the manufacturing or processing operations;
(v) The value added to the article or material;
Section 12.130(e)(1) provides that an article or material
usually will be a product of a particular foreign territory or
country, or insular possession of the United States, when, prior
to importation into the United States, it has undergone in that
foreign territory or country or insular possession, any of the
following:
(i) Dyeing of fabric and printing when accompanied by two
or more of the following finishing operations:
bleaching, shrinking, fulling, napping, decating,
permanent stiffening, weighting, permanent embossing, or
moireing;
(ii) Spinning fibers into yarn;
(iii) Weaving, knitting or otherwise forming fabric;
(iv) Cutting of fabric into parts and the assembly of those
parts into the completed article; or
(v) 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 and tailoring of all cut
pieces of suit-type jackets, suits, and shirts).
According to T.D. 85-38 (19 Cust. Bull. 58, 70; 50 FR 8714),
the final document rule establishing 19 CFR 12.130:
"[T]he assembly of all the cut pieces of a garment
usually is a substantial manufacturing process that
results in an article with a different name,
character, or use than the cut pieces. It should be
noted that not all assembly operations of cut garment
pieces will amount to a substantial transformation of those
pieces. Where either less than complete assembly of all
the cut pieces of a garment is performed in one country, or
the assembly is a relatively simple one, then Customs will
rule on the particular factual situations as they arise,
utilizing the criteria in section 12.130(d)."
This office has consistently 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 Letters (HRL's) 082747, dated
February 23, 1989; 086665, dated March 23, 1990; 951169, dated
April 1, 1992; 951437, dated July 17, 1992; 952647, dated January
27, 1993.
In the instant case, the assembly operations performed in
China are mere combining and sewing operations and do not possess
the requisite degree of complexity to be deemed substantial
manufacturing processes for purposes of conferring country of
origin status. No great degree of skill or advanced technology is
required, nor is tailoring involved. The cutting operations in
Taiwan, however, materially alter the fabric into designated
garment pieces. This constitutes a substantial transformation of
that fabric and Taiwan is the country of origin for the subject
garment.
HOLDING:
The country of origin of the women's tank-style tops,
referenced style numbers 97507/97508, is Taiwan. It is during the
cutting process in Taiwan that the fabric last undergoes a
substantial transformation and is transformed into a new and
different article of commerce (a women's top) by means of
substantial manufacturing operations (cutting the fabric into
designated garment parts).
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