CLA-2 CO:R:C:T 956757 SK
Diane L. Weinberg
Sandler, Travis & Rosenberg, P.A.
505 Park Avenue
New York, N.Y. 10022-1106
RE: Country of origin determination for knit garments; piece
goods imported from Taiwan; piece goods cut to shape in
Singapore; simple assembly and packaging in third country; 19 CFR
12.130(b)(d)(e); cutting constitutes substantial transformation.
Dear Ms. Weinberg:
This is in response to your letter of July 11, 1994, on
behalf of your client, Sing Lun & Company (Pte.) Ltd., requesting
a country of origin determination for several styles of knit
garments. Samples of the finished garments were submitted to
this office for examination.
FACTS:
You have requested a country of origin determination for
several styles of knit garments. The garment referenced Exhibit
1 is a long sleeve crew neck sweatshirt.
Exhibit 2 is a short sleeve crew neck tee shirt. Exhibit 3 is a
pair of pull-on pants with drawstring waist, side pockets and one
rear pocket. Exhibit 4 is a pair of pants with drawstring waist,
side pockets, one rear pocket, and rib cuffs. Exhibit 5 is a
long sleeve cardigan with two front pockets. No information as
to the fiber content of the subject garments was provided.
You submit that your client plans to import Taiwanese piece
goods into Singapore where they will be cut into shaped
components. The components will then be sent to Sri Lanka,
Indonesia or Malaysia for assembly into completed garments.
After assembly,the garments will be pressed and packaged in the
country of assembly.
ISSUE:
What is the country of origin of the subject garments?
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.
In the instant case, the assembly operations performed in
either Sri Lanka, Indonesia or Malaysia 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 Singapore, however,
materially alter the fabric into designated garment pieces. This
constitutes a substantial transformation of that fabric and
Singapore is the country of origin for the subject garments.
HOLDING:
The country of origin of the knit garments is Singapore. It
is during the cutting process in Taiwan that the fabric last
undergoes a substantial transformation and is transformed into
new and different articles of commerce (upper body garments and
pants) 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