CLA-2 CO:R:C:T 950287 SK
Mr. J.F. Fritz
Norman Krieger, Inc.
P.O. Box 92599
Los Angeles, CA 90009
RE: Country of origin of sweaters
Dear Mr. Fritz:
This letter is in response to your inquiry of August 5,
1991, on behalf of California Fashion Club, Inc., requesting a
country of origin determination for sweaters. A sample of both
the finished article and its unassembled component parts were
submitted for Customs' examination.
FACTS:
The submitted sample, Style MJ-2038, is a women's knit
pullover sweater that consists of 80% acrylic, 17% nylon and 3%
lambswool fibers. The fabric of the sweater has less than nine
stitches per two centimeters measured horizontally. The sweater
features a round, capped neckline, long sleeves with rib knit
cuffs and a pronounced rib knit waistband. The front panel has
intarsia knit construction that forms a flower and leaf pattern.
Fabric pieces were also submitted that constitute various parts
of the sweater: front panel, back panel, two sleeve panels and
the collar piece.
According to your submissions, you state that the front
panel is knit in Taiwan but the "balance of (the) garment is knit
and completed in Macau." An earlier submission by the knitting
factory in Macau sets forth that the yarn is spun either in
Taiwan or another unspecified country. The yarn is dyed in
Macau. The front panel is knit in an unspecified foreign
territory. The back panel, the sleeves and the collar are all
knit in Macau. The remaining assembling, finishing and
packaging are all performed in Macau.
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ISSUE:
What is the country of origin of the merchandise at issue?
LAW AND ANALYSIS:
Section 12.130 of the Customs Regulations (19 CFR 12.130) is
applicable to the merchandise at issue. Section 12.130(b) of the
Customs Regulations 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 as a
result of the manufacturing or processing operations
in each foreign territory or country, or insular
possession of the United States;
(ii) The time involved in the manufacturing or processing
operations in each foreign territory or country, or
insular possession of the United States;
(iii) The complexity of the manufacturing or processing
operations in each foreign territory or country, or
insular possession of the United States;
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(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 United States;
(v) The value added to the article or material in each
foreign territory or country, or insular possession
of the United States, compared to its value when
imported into the United States.
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:
(iii) weaving, knitting or otherwise forming fabric.
The article at issue last undergoes a substantial
transformation in Macau. This "substantial transformation" takes
the form of extensive manufacturing and processing operations
which include all of the subject merchandise's assembly,
finishing work and knitting, except for the knitting of the front
panel. The article at issue has been subjected to substantial
processing in Macau inasmuch as it is here that the article
undergoes a significant physical change into a completely
assembled sweater and the time involved in knitting and
assembling the back, sleeves and collar is significantly longer
than that of processing the front panel alone.
HOLDING:
The country of origin for the merchandise at issue is Macau.
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
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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