CLA-2 CO:R:C:T 088022 CMR

Mr. Phillip Sporidis
North Fyord, Inc.
428 North 13th Street
Philadelphia, PA 19123

RE: Country of origin of certain sweat garments

Dear Mr. Sporidis:

This ruling is in response to your letter of September 28, 1990, requesting a country of origin determination for the manufacture of certain sweat garments. The production steps for the manufacture of these garments occur in three countries. Three sample garments were received with your letter, two sweat shirt type pullovers and one pair of sweat pants.

FACTS:

The production of the garments begins with the fabric. The knitted greige goods will be produced in Pakistan of 100 percent cotton or 80 percent cotton/20 percent polyester French terry fabric. The greige goods will be dyed and finished in Greece. The processes involved in the stage of manufacture include slitting, scouring, dyeing, drying, brushing to create a fleece surface and final setting of the fabric. The processed fabric will then be cut in Greece into the garment components. This cutting operation includes making patterns of all garment components, creating the marker, spreading the fabric, cutting, and bundling the garment components sorted by color and size and packaging the components with all the finding (i.e. labels, zippers, buttons, draw cords, snaps, logo patches, etc.) and sewing thread.

The cut fabric components together with all the findings and thread will be shipped to Bulgaria where they will be assembled by sewing into finished garments. The sewing process involves the use of three types of sewing machines: overlock stitch, two needle (coverstitch), and single needle.

The finished garments will be shipped back to Greece where they will be inspected, preshrunk, folded, tagged (with hangtag) and packed. -2-

ISSUE:

What is the country of origin of the sweat garments at issue?

LAW AND ANALYSIS:

Country of origin determinations for textile articles are governed by the criteria enunciated in volume 19, Code of Federal Regulations, section 12.130. Section 12.130(d) sets out the basic guidelines for determining the country of origin of textiles or textile articles. While not exhaustive, considerations include: whether a new and different article of commerce is created as a result of a manufacturing or processing operation and whether merchandise has been subjected to substantial manufacturing or processing operations.

In determining whether a new and different article of commerce is created, changes, if any, in the commercial designation or identity, fundamental character, or commercial use are considered. In determining whether merchandise has been subjected to substantial manufacturing or processing operations, the following factors are considered: physical changes in the material or article as a result of manufacturing or processing operations, the time required and complexity of manufacturing or processing operations, the level or degree of skill and/or technology required in the manufacturing or processing, and the value added to the article or material.

You indicate in your submission that the dyeing, finishing and cutting operations which occur in Greece are complex and require highly skilled lab technicians, chemists and cutters. Your further indicate that unskilled to semi-skilled workers perform the majority of the sewing operations necessary to assembly the garments in Bulgaria. You submitted information on costs per process, but no information on time required. However, we believe we have sufficient information to make a decision.

Having examined the garments and considering the amount of processing occurring in Greece (dyeing, finishing and cutting) and the nature and costs of these operations (approximately 31 percent of the total), we do not believe the assembly of the components into finished garments in Bulgaria is sufficient to convey country of origin.

HOLDING:

The country of origin for the purposes of marking, textile quota restraints and Customs duty assessment for the submitted sweat garments, produced as described above, is Greece.

-3-

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 of 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