CLA-2 CO:R:C:T 956352 NLP
S. Richard Shostak, Esq.
Stein, Shostak, Shostak & O'Hara
3580 Wilshire Boulevard, Suite 1240
Los Angeles, CA 90010-2597
RE: Country of Origin determination for men's knit long sleeve
shirts; 19 CFR 12.130; substantial transformation; fabric is
woven, knit, dyed and cut into component parts in
Taiwan; component pieces are assembled by sewing in China
into finished garments
Dear Mr. Shostak:
This letter is in response to your inquiry of April 21, 1994,
on behalf of your client, Glint, Inc., requesting a country of
origin determination for five styles of men's long sleeve shirts
that are either woven and knit or just knit. Samples of the
completed shirts were submitted to this office for examination and
will be returned to you under separate cover.
FACTS:
The articles at issue are five styles of men's long sleeve
shirts. All of the garments at issue are composed of 65% polyester
and 35% cotton fabric of Taiwanese origin. In all cases the fabric
will be cut into component pieces in Taiwan and then shipped to
China for assembly by sewing, ironing, folding and packing before
exportation to the United States. The five samples submitted are
described as follows:
1. Style number F4774A
Style number F4774A features a partial frontal opening and
button closures, a collar, an inset breast pocket, long
sleeves made of pieced fabric construction with two fabric
strip overlays and ribbed knit cuffs. The garment also has
a ribbed knit waistband. The front panel of the garment
consists of pieced fabric construction creating a horizontal
three panel effect. The front middle panel has two fabric
strip overlays running across its center. The back panel of
the garment is also made of pieced fabric construction
creating a horizontal two panel effect. Before assembly in
China, the fabric is woven, knit, dyed and cut into 28
components in Taiwan.
2. Style number F4786
Style number F4786 features a partial frontal opening and
snap closures that extend to the top of the collar which
features a threaded drawstring. The garment has long sleeves
with fabric strip overlays and ribbed knit cuffs. The garment
also has a ribbed knit waistband and an inset chest pocket.
The front and back panels of the garment are of pieced fabric
construction creating a horizontal three panel effect. Before
assembly in China, the fabric is woven, knit, dyed and cut into
23 components in Taiwan.
3. Style number M2103
Style number M2103 features a partial frontal opening with
button closures, a collar and an inset chest pocket. The
garment has long sleeves made of pieced fabric construction
and fabric strip overlays and ribbed knit cuffs. It also
has a ribbed knit waistband. The front panel consists of
pieced fabric construction creating a horizontal four panel
effect. The front panel also has two fabric strip overlays
across the chest area. The back panel is also made of pieced
fabric construction, which creates a horizontal two panel
effect. Before assembly in China, the fabric is knit, dyed
and cut into 31 components in Taiwan.
4. Style number M2104
Style number M2104 features a partial frontal opening with
button closures, a collar and an inset chest pocket. The
garment has long sleeves made of pieced fabric construction
and two fabric strip overlays and ribbed knit cuffs. It
also has a ribbed knit waistband. The front and back panels of
the garment consist of five fabric pieces sewn together
vertically. The front panel has four fabric strip overlays
that border the larger fabric pieces and run the length of
the garment. Before assembly in China, the fabric is knit,
dyed and cut into 33 components in Taiwan.
5. Style number M2107
Style number M2107 features a partial frontal opening and
snap closures, a collar and an inset chest pocket. The garment
has long sleeves made of pieced fabric construction creating a
horizontal four panel effect and ribbed knit cuffs. The
garment also has a ribbed knit waistband. The front panels are
made of pieced fabric construction creating a horizontal five
panel effect. In addition, the front panel has two fabric strip
overlays on top of the third and fifth panels. Before assembly
in China, the fabric is woven, knit, dyed and cut into 26
components in Taiwan.
ISSUE:
What is the country of origin of the merchandise at issue?
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 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(d) of the Customs Regulations sets forth
criteria for 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) 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 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 onto the U.S.
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)(v) 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:
* * * * *
(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).
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, Headquarters Ruling Letter (HRL)
955125, dated January 27, 1994; HRL 953697, dated July 26, 1993;
and HRL 952531, dated November 25, 1992. 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. For example, in HRL 953697,
Customs held that the assembly process of three men's knit and/or
woven shirts in China, which involved the sewing together of fabric
components that were manufactured, knitted, woven and cut in
Taiwan, did not involve sufficient skill or complexity to
constitute a substantial transformation as defined by Section
12.130(e)(v). Therefore, the country of origin was found to be
Taiwan, as that was where the piece goods were cut into specific
parts and where the articles last underwent a substantial
transformation. See also, HRL 082747, dated February 23, 1989; HRL
086665, dated March 23, 1990; HRL 951169, dated April 1, 1992; HRL
734392, dated August 4, 1992; HRL 953489 dated June 14, 1993; HRL
953698, dated July 19, 1993; HRL 953903, dated August 17, 1993.
In the instant case, the cutting in Taiwan materially alters
the fabric into designated component pieces, which constitute new
and different articles of commerce. The assembly operations to be
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. In assembling the component
pieces, no great degree of skill or advanced technology is
required, nor is tailoring involved. In addition, the value
added to all the subject garments in Taiwan is substantially more
than the value added to the goods in China. Thus, the country of
origin of the five men's long sleeve tops is Taiwan, as that is
where the fabric last underwent a substantial transformation.
HOLDING:
The country of origin of the submitted merchandise, referenced
by style numbers F4774A, F4786, M2103, M2104 and M2107, is Taiwan.
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