CLA-2 CO:R:C:T 952774 CMR
John W. Williams
Ely & Walker Co.
P.O. Box 1326
Lebanon, Tennessee 37087
RE: Country of origin of a country western style men's shirt;
19 CFR 12.130; country of origin textiles
Dear Mr. Williams:
This ruling is in response to your request of October 21,
1992, with regard to a country of origin determination on the
manufacture of a country western style shirt.
FACTS:
The garment at issue is a men's long or short sleeve country
western style shirt. The shirt has a dress collar, full frontal
opening with placket, a yoke across the back extending to the
shoulders to which a single panel is sewn, two flap chest pockets
and cuffs with three snaps on each cuff (long sleeve) and two ply
front yokes.
The manufacturing process of the subject shirt involves
marking and cutting of Korean, Chinese, Taiwanese or Pakistani
fabric into garment parts in South Korea. The collars will be
sewn in South Korea and then the collars and remaining garment
parts are sent to Burma (Myanmar) for assembly into the finished
shirt. The garment is then packaged and shipped to the United
States.
ISSUE:
Is South Korea or Burma the country of origin of the subject
shirt?
LAW AND ANALYSIS:
Country of origin rulings on textile articles are based upon
the language of Section 12.130 of Volume 19 of the Code of
Federal Regulations. Section 12.130 sets out the criteria for
determining the country of origin of textile goods. -2-
19 CFR 12.130(e)(1) provides, in pertinent part:
An article or material usually will be a product of a
particular foreign territory or country, or insular
possession of the U.S., when it has undergone prior to
importation into the U.S. in that foreign territory or
country, or insular possession any of the following:
(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.) (emphasis added).
Following section 12.130, Customs has consistently ruled
that, generally, the complete assembly of a dress shirt, i.e., a
tailored woven shirt, is considered a substantial transformation
due to the complexity of the assembly and the skill required to
produce the tailored garment. Having examined the country
western style shirt at issue, in our view, it is similar in
construction and tailoring to such woven shirts.
In HRL 951541 of July 30, 1992, Customs ruled on three
different manufacturing scenarios for the production of men's
dress shirts. One scenario entailed marking and cutting of
fabric into garment parts in Hong Kong. Additionally, the
collars for the dress shirts were sewn in Hong Kong. Then, all
the parts and collars were assembled into the finished shirts,
ironed and packed in China. A second scenario is the same as the
first with the exception of the cuffs also being sewn in Hong
Kong.
Customs ruled in HRL 951541 that the cutting of the garment
parts and assembly of the collars in Hong Kong (the first
scenario) and the assembly of the collars and cuffs (the second
scenario) with the remaining assembly in China, resulted in Hong
Kong as the country of origin of the dress shirts. This was due
to the fact that only partial assembly took place in China. The
partial assembly operation was not considered significant enough
to qualify as a "substantial transformation". The ruling relies
upon the language of Treasury Decision 85-38 (T.D. 85-38) which
is the final document rule establishing 19 CFR 12.130. In T.D.
85-38, it is stated:
The 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 -3-
transformation of those pieces. Where either less than a
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). (Emphasis added).
The manufacturing process of the subject shirt is
essentially identical to the situation ruled upon in HRL 951541;
i.e., the garment is only partially assembled in Burma. However,
the position taken in HRL 951541 in regard to the subassemblies
of the collars, and the collars and cuffs, has been the subject
of discussion and review with other government agencies. It has
been determined that the position adopted in HRL 951541 was in
error. Customs is currently in the process of modifying that
ruling to accord with the following analysis.
As stated earlier, following section 12.130(e)(1)(v), the
complete assembly of the cut garment parts of a tailored woven
shirt is considered a substantial transformation due to the
complexity of the assembly and the skill required to produce the
tailored garment. The situation at hand presents the issue of
whether the subassembly of a component of the garment will
prevent the assembly of that component and remaining garment
parts from conveying origin. After review of this area and
consultation with representatives of the Committee for the
Implementation of Textile Agreements, it has been determined that
the subassembly of a component (in this case the collar) or
components (in the case of HRL 951541, the collar and cuffs),
when a relatively minor part of the complete assembly of the
garment, will not preclude the subsequent assembly of the
subassembled component(s) and remaining garment parts from
conveying origin. Therefore, the country of origin of a tailored
garment as described in section 12.130(e)(1)(v) will be the
country in which the final assembly of the subassembled
components and remaining garment parts takes place.
As cited above in T.D. 85-38, when confronted with assembly
processes involving assembly of parts and components in more than
one country, Customs will rule on the particular factual
situations as they arise, utilizing the criteria in section
12.130(d). (Emphasis added). In other words, should the
assembly process vary from that presented in this ruling, this
ruling would not be applicable. A variation in the division of
the assembly process could lead to the same or different
conclusion.
Based upon the information you have provided, the country of
origin of the subject shirt is the country where the garment
parts (including the sub-assembled collars) are assembled, i.e,
Burma. -4-
HOLDING:
Based on the information provided, the country of origin of
the subject shirt is Burma.
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 the ruling letter,
either directly, by reference, or by implication, is accurate and
complete in every material respect.
Should it be subsequently 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