CLA-2 CO:R:C:T 956797 jb
Judith A. Schechter, Esq.
Grunfeld, Desiderio, Lebowitz & Silverman
245 Park Avenue
New York, N.Y. 10167-0002
RE: Classification and country of origin determination for
a men's woven shirt; substantial transformation where
assembly occurs
Dear Ms. Schechter:
This letter is in response to your inquiry of July 19, 1994,
on behalf of your client, Wing Tai Garment International, Ltd.,
requesting a classification and country of origin determination
for a men's cotton woven shirt. A sample was submitted to this
office for examination.
FACTS:
The submitted sample, advertised as "THE GREAT SHIRT",
"OVERSIZED FIT", referenced style number F94M1212, is a men's 100
percent cotton woven long-sleeve flannel shirt. The garment
consists of two front panels, one back panel, two sleeve
components and additional components such as plackets, pocket
flaps and cuffs. The garment features "oversized" styling, two
front buttoned flap pockets, buttoned cuffs and sleeves with
plackets, a full frontal placket opening with a seven button
left-over-right closure, a collar, and a back yoke. You state
that the garment is not manufactured in specific collar sizes or
sleeve lengths, that it is intended for casual wear without a tie
or jacket, and that it will also be produced for boys'
sizes.
The assembly operation for the shirt is as follows:
COUNTRY A
fabric and linings are sourced
COUNTRY B
trims and packing materials are sourced
COUNTRY C
marking and cutting of the material into component parts
COUNTRY A; or D; or E; or F
garments will be sewn, assembled and packaged
The shirt will be washed, pressed and packaged in the country of
assembly.
ISSUE:
What is the classification and 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.
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: (1) Commercial
designation or identity, (ii) Fundamental character or (iii)
Commercial use.
Section 12.130(d)(2) of the Customs Regulation 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) 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).
Section 12.130(e)(i)(v) makes note that there must be
substantial assembly by sewing or tailoring of a suit-type
garment for substantial transformation to occur. Customs has
ruled numerous times on garments such as the subject sample where
the complexity of the assembly process was determined to confer
country of origin. HQ 953641, dated August 19, 1993, addressing
a men's sport shirt, and HQ 953638, dated August 19, 1993,
addressing a men's acrylic shirt, garments virtually identical to
the submitted sample in that the garments have a "casual and
relaxed" look and fit, stated that:
To determine whether origin is conferred when an article is
transformed from its numerous constituent parts to what is
eventually recognized as the completed garment, i.e., a
shirt, one must first define "substantial assembly".
Substantial assembly can be defined as that operation,
whether by sewing or tailoring, when all the components of
the garment are attached together to form that completed
shirt...
In both those cases it was determined that the assembly of
the various components, namely, sleeves, collar, cuffs, full-front opening and yokes, resulted in a substantial transformation
of those component parts into a long sleeve shirt. In addition,
a determination that substantial transformation occurs at the
time of assembly of the individual component parts is in
adherence to the terms set out by Section 12.130(e)(1) of the
Customs Regulations (See also, HQ 075323, dated April 1, 1985; HQ
555608, dated January 27, 1990; HQ 952750, dated October 16,
1992; HQ 953639, dated August 19, 1993; HQ 953640, dated August
19, 1993).
Your reference to New York ruling letter (NY) 893507, dated
January 18, 1994, in support of your claim that the country of
origin of the submitted sample is the country where cutting takes
place, is distinguishable from the subject garment. In the
former case of the women's garment, the facts of the case, i.e.,
the description of the garment and complexity of the assembly
process described therein, are not identical to the case of the
submitted men's shirt. As such, a determination that the
assembly process in NY 893507 was a simple one, was based on
information provided by that importer, regarding that particular
article.
Though the subject garment is a casual, non-tailored
garment, sewing the individual components of the shirt together,
particularly the long sleeves, collar, cuffs, yoke and plackets,
to form the completed shirt, necessitates careful and skilled
sewing in the assembly. It is the opinion of this office that
this assembly is beyond a simple sewing operation and thus
qualifies as a substantial assembly process.
A review of the cited cases and other cases involving
shirts, thus looks to both the structure of the shirt and the
complexity of the assembly process. In the instant case country
of origin is conferred at the time of assembly of the component
parts into the completed garment. It is at such time that a
substantial transformation occurs.
HOLDING:
The country of origin of the submitted merchandise,
referenced style number F94M1212, is the country of assembly. It
is at the assembly process that the textile product undergoes a
substantial transformation and is transformed into a new and
different article of commerce.
When produced in men's sizes, style number F94M1212 is
classified in subheading 6205.20.2050, HTSUSA, which provides
for, inter alia, men's or boys' shirts, of cotton, other, other,
other, men's. When produced in boys' sizes, style number
F94M1212 is classified in subheading 6205.20.2060, HTSUSA, which
provides for, inter alia, men's or boys' shirts, of cotton,
other, other, other, boys'. The applicable rate of duty is 21
percent ad valorem and the quota category is 340.
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