CLA-2 CO:R:C:T 956543 SK
Jenny Feng
Sung Kiang Industrial Co., Ltd.
1Fl., No. 15, Lane, 46, Ching Cheng St.
Taipei, Taiwan
Republic of China
RE: Country of origin determination for a girls' top and shorts;
fabric knit, dyed and cut in Taiwan; simple assembly in China; 19
CFR 12.130(b)(d)(e); cutting constitutes substantial
transformation.
Dear Ms. Feng:
This is in response to your letter of May 31, 1994,
requesting a country of origin determination for a girls' two-piece outfit comprised of a knit top and shorts. A sample of the
finished garment, plus a bundle consisting of the garment's
constituent parts, were submitted to this office for examination.
FACTS:
You have requested a country of origin determination for a
girls' two-piece outfit comprised of a knit top and shorts
(referenced style number 3503). The item is sized 2T/4T and is
manufactured of a knit blend of 65 percent polyester and 35
percent cotton. The girls' top is designed in a crew neck style
with a full frontal button opening. The top has short sleeves, a
flared waist and features decorative top stitching on the
sleeves, neckline and bottom hem. The shorts feature an
elasticized waist and decorative top stitching on the leg
openings.
The fabric for the subject garment is knit, dyed and cut
into piecegoods in Taiwan. In China, the garment's component
parts are assembled into the completed article. You state in
your submission that the five component parts of the top are sewn
together in China, as are the four component parts of the shorts.
Decorative stitching ("merrow stitching") is applied to the
garment and labels and buttons are sewn on. The garment is then
trimmed, ironed, inspected, and packed for shipment to the United
States.
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ISSUE:
What is the country of origin for style 3503?
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 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 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:
(i) Commercial designation or identity;
(ii) Fundamental character;
(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;
(v) The value added to the article or material;
Section 12.130(e)(1) provides that an article or material
usually will be a product of a particular foreign territory or
country, or insular possession of the United States, when, prior
to importation into the United States, it has undergone in that
foreign territory or country or insular possession, any of the
following:
(i) Dyeing of fabric and printing when accompanied
by two or more of the following finishing
operations: bleaching, shrinking, fulling,
napping, decating, permanent stiffening,
weighting, permanent embossing, or moireing;
(ii) Spinning fibers into yarn;
(iii) Weaving, knitting or otherwise forming fabric;
(iv) Cutting of fabric into parts and the assembly of those
parts into the completed article; or
(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).
According to T.D. 85-38 (19 Cust. Bull. 58, 70; 50 FR 8714),
the final document rule establishing 19 CFR 12.130:
"[T]he assembly of all the cut pieces of a garment
usually is a substantial manufacturing process that
results in an article with a different name, character,
or use than the cut pieces. It should be noted that not
all assembly operations of cut garment pieces will
amount to a substantial transformation of those pieces.
Where either less than complete assembly of all the cut
pieces of a garment is performed in one country, or the
assembly is a relatively simple one, then Customs will
rule on the particular factual situations as they
arise, utilizing the criteria in section 12.130(d)."
This office has consistently 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 Headquarters Ruling Letters (HRL's) 082747, dated
February 23, 1989; 086665, dated March 23, 1990; 951169, dated
April 1, 1992; 951437, dated July 17, 1992; 952647, dated January
27, 1993.
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In the instant case, the assembly operations 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. No great degree of skill or advanced technology
is required, nor is tailoring involved. The cutting operations
in Taiwan, however, materially alter the fabric into designated
garment pieces. This constitutes a substantial transformation of
that fabric and Taiwan is the country of origin for the subject
garment.
HOLDING:
The country of origin of the girls' two-piece outfit,
referenced style 3503, is Taiwan. It is during the cutting
process in Taiwan that the fabric last undergoes a substantial
transformation and is transformed into a new and different
article of commerce (top and shorts) by means of substantial
manufacturing operations (cutting the fabric into designated
garment parts).
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