CLA-2 CO:R:C:G 084979 PR
Mr. Peter W. F. Wu
Moderntex International Inc.
39-41 Hankow Road
Tsim Sha Tsui
Kowloon, Hong Kong
RE: Country of Origin of a T-Shirt
Dear Mr. Wu:
This ruling is in response to your letter of June 20, 1989,
concerning the country of origin of certain T-shirts for quota
and export license purposes.
FACTS:
Three pieces of the subject T-shirts are being fabricated in
China--the body of the garment consisting of front and back
panels joined together at the shoulders with capping forming a
finished neck opening, and two cut-to-length pieces of fabric
that will form the short sleeves. These parts are shipped to
Hong Kong where (1) the side seams are stitched together, (2) the
sleeves are attached, (3) the bottom is hemmed, and (4) the
shirts are packed for shipment to the United States.
ISSUE:
The issue presented is whether the processing in Hong Kong
is sufficient to cause the subject shirts to be products of Hong
Kong for quota and export license purposes.
LAW AND ANALYSIS:
Section 12.130, Customs Regulations (19 CFR 12.130)
provides, in pertinent part, as follows:
(b) Country of origin. For the purpose of this section
* * * a textile or textile product, subject to section
204, Agricultural Act of 1956, as amended, imported
into the customs territory of the United States shall
be a product of a particular foreign territory or country,
or insular possession of the U.S., if it is wholly the
growth, product, or manufacture of that foreign territory or
country, or insular possession. However, * * * a textile
or textile product, subject to section 204, which consists
of materials produced or derived from, or processed in, more
than one foreign territory or country, or insular possession
of the U.S., shall be a product of that foreign territory or
country, or insular possession 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.
* * *
(d) Criteria for determining country of origin. The
criteria in paragraphs (d)(1) and (2) of this section
shall be considered in determining the country of
origin of imported merchandise. These criteria are not
exhaustive. One or any combination of criteria may be
determinative, and additional factors may be
considered.
(1) 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.
(2) 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 into the U.S.
HOLDING:
In applying the standards set out in Section 12.130, Customs
Regulations, we find that the processing in Hong Kong is neither
substantial nor results in a new article of commerce.
Accordingly, for quota, visa, and export license purposes, the
subject T-shirts are products of China.
Sincerely,
John Durant, Director
Commercial Rulings Division