CLA-2 CO:R:C:T 954436 NLP
Mr. Michael Chunka
Miles & Joffrey
2225 Avenida Costa Este
Suite 1600
San Diego, CA 92173
RE: NYRL 881550; Country of origin determination of men's short
sleeved polo shirts; substantial transformation; 19 CFR
12.130(e)(1)(iv); fabric is woven in China; fabric is cut by
an electric cutting machine and assembled into polo shirts
in Mexico; HRL 952046
Dear Mr. Chunka:
This is in response to your letter of June 16, 1993, on
behalf of your client, Superior Garment Manufacturing Company,
Ltd., concerning New York Ruling Letter (NYRL) 881550, dated
January 27, 1993, which dealt with the tariff classification and
country of origin determination of men's knit garments. Your
client is planning to modify certain production operations
discussed in NYRL 881550 and would like to know whether these
changes will affect the classification and country of origin of
the men's knit garments as determined in NYRL 881550.
FACTS:
The garments at issue are two styles of men's polo shirts
that have the following features: a rib knit spread collar; a
partial front opening with a two button left over right placket;
short sleeves with rib knit cuffs; embroidery on the left chest;
and a hemmed bottom with side slits and a tail.
Style FKS-06 is made of 100% cotton, jersey knit fabric
which measures 11 stitches in the horizontal direction and 14
stitches in the vertical direction per linear centimeter. Style
FKS-07 is made of 100% cotton, pique knit fabric which measures 8
stitches in the horizontal direction and 12 stitches in the
vertical direction per linear centimeter.
In your original submission, dated October 26, 1992,
supplemented by your letters of December 18, 1992, and August 13,
1993, you stated that the pique or jersey knit body fabric and
the rib knit fabric, which is used for the collar and the sleeve
edges, will be imported in bolt form with no lines of demarcation
from China and will be shipped in-bond through the U.S. to
Tijuana, B.C., Mexico. In Mexico, the patterns for the shirts
will be made, the fabric will be die-cut to form the garment
pieces, and the pieces will be assembled by sewing. The garments
will then be washed, pressed, labeled, folded and placed in
plastic bags for shipping.
NYRL 881550 held that garment style FKS-06 was classified in
subheading 6105.10.0010, Harmonized Tariff Schedule of the United
States (HTSUS), and style FKS-07 was classified in subheading
6110.20.2065, HTSUS. Moreover, this ruling held that the country
of origin for the polo shirts was Mexico as that is where the
fabric was cut to shape and the garment pieces were sewn together
to form the polo shirts. These operations constituted a
substantial manufacturing or processing operation as described in
19 CFR Section 12.130 (1)(e)(iv) and, therefore, resulted in a
substantial transformation of the fabric.
The first modification that your client is proposing
involves the cutting operation to be performed in Mexico.
Instead of cutting the fabric with a die cutting machine, the
fabric will be cut by an electric cutting machine, which cuts
layers of fabric to a specific pattern utilizing a straight
knife. The second modification involves the cessation of garment
washing before pressing, labeling and folding the garment. The
cutting and assembly operations will still be performed entirely
in Mexico and all other procedures will remain the same as stated
in your original submissions.
ISSUE:
Does modifying the method of cutting the fabric change the
classification and/or country of origin of polo shirts that are
made from fabric imported in bolt form from China into Mexico,
where the fabric is cut into garment patterns and then assembled
by sewing?
Does omitting the washing cycle have any effect on the
classification and/or country of origin of the subject polo
shirts?
LAW AND ANALYSIS:
CLASSIFICATION OF THE POLO SHIRTS
The modifications that you have submitted will have no
effect on the HTSUS classifications of the subject polo shirts.
Therefore, the polo shirts are classified in the subheadings
specified in NYRL 881550.
COUNTRY OF ORIGIN DETERMINATION FOR THE POLO SHIRTS
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 or 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(e) of the Customs Regulations sets forth
criteria which aid us in determining whether an article has been
subjected to certain manufacturing or processing operations which
serve to substantially transform an article into a new and
different article of commerce. Specifically, Section
12.130(e)(1)(iv) is relevant in the instant case. This Section
provides that:
An article or material usually will be a product of a
particular foreign territory or country, or insular
possession of the U.S., when it has undergone prior to
importation into the U.S. in that foreign territory or
country, or insular possession any of the following:
* * * * *
(iv) Cutting of fabric into parts and the assembly of those
parts into the completed articles; or
We have previously held that cutting of fabric into pattern
pieces and their assembly constitutes a substantial
transformation of the fabric, resulting in the apparel pieces
becoming a product of the country where the fabric is cut and
assembled. See, HRL 952046, dated October 26, 1992, in which
fabric is cut into pieces which are assembled to produce jeans in
Mongolia. In China, the jeans are washed and packed before being
sent to the U.S. The country of origin of the jeans was
determined to be Mongolia pursuant to Section 12.130(e)(1)(iv).
In the instant case, the cutting and sewing operations will
be performed in Mexico. The only modification involves the type
of machine used to cut the fabric. We do not believe that
changing the method used to cut the fabric changes the garments'
country of origin. Therefore, as the operations performed in
Mexico are considered substantial manufacturing operations,
Mexico is the country of origin for these garments.
Moreover, the removal of the washing operation in the final
finishing of the garment also does not affect the country of
origin determination. Washing is considered to be merely an
incidental finishing operation. Thus, the country of orign for
the polo shirts is Mexico.
HOLDING:
Style FSK-06 is classified in subheading 6105.10.0010,
HTSUS, and style FKS-07 is classified in subheading 6110.20.2065,
HTSUS.
The country of origin of the polo shirts is Mexico.
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