CLA CO:R:C:T 952912 jb
Michael R. Doram, Esq.
Politis, Pollack & Doram
3255 Wilshire Blvd. Suite 1688
Los Angeles, California 90010
RE: Country of origin determination for T-shirts; dyeing and
printing operations require additional finishing operations
for new country of origin determination
Dear Mr. Doram:
This letter is in response to your inquiry of
November 17, 1992, requesting a country of origin determination
for 100 percent cotton T-shirts.
FACTS:
The garments at issue consist of 100 percent cotton
T-shirts imported from Mexico. The process of manufacture is as
follows:
1. Cotton fabric, produced in China, arrives in Honduras in
bulk form and without lines or marks of demarcation
2. In Honduras the following operations take place:
a. the fabric is cut to specific shapes and patterns to
create the front and back panels and the sleeves
b. complete sewing operations of the pieces to form the
T-shirts
c. forming of the neck band and hemming of the sleeves
and bottom of the garments
3. In Mexico the T-shirts would be either dyed and screen
printed, dyed and hand-painted or, dyed, screen printed
and hand-painted. In any instance, the following
operations also take place:
a. inspection
b. screen-printing with up to four impressions per
garment
c. final treatment (consisting of air spraying, dipping
the garments into a container of dye, hand squeezing
of the garments, overdying and padding)
d. washing and drying
e. labelling, ticketing, folding and packing for
shipment
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)(i) provides that an article or
material usually will be a product of a particular foreign
territory or country where there has been, in addition to dying
and printing, two or more of the enumerated finishing operations,
i.e., bleaching, shrinking, fulling, napping, decating, permanent
stiffening, weighting, permanent embossing or moireing.
Section 12.130(e)(1)(iv) provides that an article or
material usually will be a product of a particular foreign
territory or country when there has been both a cutting of fabric
into parts and the assembly of those parts into the completed
article. Section 12.130(e)(2)(i) and 12.130(e)(2)(v) provide that
an article or material usually will not be considered to be a
product of a particular foreign territory or country by reason of
dyeing and/or printing or labeling, cleaning or packaging.
We have previously held that cutting of fabric into garment
parts and the assembly of those parts constitutes a substantial
transformation of the fabric, resulting in the apparel pieces
becoming a product of the country where the fabric is cut.
Customs has also held that mere dyeing and/or printing or
labeling, cleaning or packaging operations alone, do not
constitute a substantial transformation for a country of origin
determination. See for example, HQ 734526, dated August 4, 1992,
HQ 734321, dated April 13, 1992, HQ 734295, dated March 30, 1992,
HQ 734351, dated March 2, 1992, HQ 734394, dated February 10,
1992.
Similarly, we have held that even when a hand-painting
operation is introduced, this does not result in a substantial
transformation of the article. See, HQ 734220, dated December
27, 1991.
Accordingly, the operations performed in Mexico do not
constitute a substantial transformation of the garments when they
involve only dyeing and printing (without the requisite two or
more defined operations as per Section 12.130(e)(1)(i)), and mere
labeling, ticketing, folding, and packing operations.
HOLDING:
The country or origin of the T-shirts is Honduras. It is at
the cutting and assembly process, in Honduras, that the textile
product undergoes a substantial transformation and is transformed
into a new and different article of commerce. That is the last
substantial transformation of the goods in question.
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