CLA-CO:R:C:T 957268 GG
Mr. Dick Lin
Canonda Enterprise Co., Ltd.
6/F. No. 119, Chien Kuo N. Road
Sec. 2, Taipei, Taiwan R.O.C.
RE: Country of Origin of Hats, Gloves and Mittens
Dear Mr. Lin:
This is in response to your request, dated September 14,
1994, for a binding ruling on the country of origin of certain
knitted hats, gloves and mittens currently being imported by your
company. Information contained in a supplemental submission of
October 29, 1994, has also been incorporated into this file.
FACTS:
The importer has manufactured knitted hats, gloves and
mittens, from raw materials to their finished state, in Taiwan
for several years. Several of the processes involved are now
going to be undertaken in Vietnam. The new operation will be as
follows.
Acrylic or wool fiber of Taiwanese origin will be knit into
jacquard circular in Taiwan. The semi-finished hats, gloves and
mittens will then be sent to Vietnam. There, the hats will be
inspected, separated piece by piece, overlock stitched, steam
ironed, and size fitted. A pompom will be made up and attached.
The semi-finished gloves and mittens will be inspected, separated
piece by piece, fingerjointed, and hand closed in Vietnam. The
cuffs will be blindlinked. The gloves and mittens will be turned
inside out and brushed before being steamed to obtain accurate
sizes. Labels will be sewn inside the hats, gloves and mittens
in Vietnam, J-hooks and hang tags will be affixed, and the
finished articles will go through quality control before being
packed and shipped to the United States.
Sixty percent of the value of the merchandise is
attributable to the operations performed in Taiwan; the remaining
forty percent is added in Vietnam.
ISSUE:
What is the country of origin of the hats, gloves and
mittens?
LAW AND ANALYSIS:
Country of origin determinations for textile products are
made pursuant 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)(1) of the Customs Regulations 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; or (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; and
(v) The value added to the article or material.
Section 12.130(e)(1) describes manufacturing or processing
operations from which an article will normally be considered a
product of the country in which those operations occurred.
Section 12.130(e)(1)(iii) specifies that "weaving, knitting or
otherwise forming fabric" results in a substantial
transformation. Therefore, the knitting of the acrylic or wool
fiber into jacquard circular in Taiwan creates new and different
articles of commerce, i.e., the semi-finished hats, gloves and
mittens.
Section 12.130(e)(2) of the Customs Regulations specifies,
in pertinent part, that an article or material usually will not
be considered to be a product of a particular foreign country by
virtue of merely having undergone simple combining operations,
labeling, pressing, cleaning or dry cleaning, or packaging
operations, or any combination thereof; or trimming and/or
joining together by sewing, looping, linking, or other means of
attaching otherwise completed knit-to-shape component parts
produced in a single country even when accompanied by other
processes (e.g., washing, drying, mending, etc.) normally
incident to the assembly process. The various operations
performed in Vietnam are of this nature and consequently, do not
change the commercial designation or identity, the fundamental
character, or the commercial use of the articles.
The hats, gloves and mittens last underwent a substantial
transformation in Taiwan, and therefore, pursuant to Section
12.130(b) of the Customs Regulations, are products of that
country.
HOLDING:
The country of origin of the hats, gloves and mittens is
Taiwan.
This ruling is issued pursuant to the provisions of Part 177
of the Customs Regulations (19 CFR Part 177). The holding in
this ruling only applies to the specific factual situation
presented and to the merchandise identified in the ruling
request. If the information furnished is not accurate or
complete, or there is a change in the factual situation, this
ruling will no longer be valid. In such an event, a new ruling
request should be submitted.
Sincerely,
John Durant
Director, Commercial
Rulings Division