CLA-2 CO:R:C:T 953697 CAB
S. Richard Shostak, Esq.
Stein Shostak Shostak & O'Hara
3580 Wilshire Boulevard
Los Angeles, CA 90010-2597
RE: Country of origin of men's shirts
Dear Mr. Shostak:
This letter is in response to your inquiry of March 16,
1993, on behalf of your client, BCTC, requesting a country of
origin determination for men's shirts. Samples were submitted
for examination.
FACTS:
There are three different styles of shirts at issue. Style
35613 is a men's knit shirt constructed of 35 percent cotton and
65 percent polyester fabric. Style 35613 contains a partial
frontal opening and button closure, a breast pocket, a collar,
and short sleeves. The fabric is manufactured, knitted, dyed,
and cut into garment pieces in Taiwan. The garment pieces are
then sent to China for assembly by sewing. The finished shirt is
then packaged for export to the United States.
Style 34618 is a men's knit and woven shirt. The knit
section of the shirt is constructed of 45 percent polyester and
55 percent cotton, while the woven area of the shirt is made of
100 percent cotton material. Style 34618 contains a partial
frontal opening and button closure, a breast pocket, a collar,
and short ribbed sleeves and waistband. The fabric is
manufactured, knitted or woven, dyed, and cut into garment pieces
in Taiwan. The garment pieces are then sent to China for
assembly by sewing. The finished shirt is then packaged for
export to the United States.
Style 34612 is a men's knit shirt constructed of 35 percent
cotton and 65 percent polyester fabric. Style 34612 contains a
partial frontal opening, a snap button means of closure, a breast
pocket, a collar, and ribbed sleeves and waistband. The fabric
is manufactured, knitted, dyed, and cut into apparel pieces in
Taiwan. The apparel pieces are then sent to China for assembly
by sewing. The finished product is then packaged for export to
the United States.
ISSUE:
What is the country of origin for the merchandise in
question?
LAW AND ANALYSIS:
Country of origin determinations for textile products are
subject to Section 12.130, Customs Regulations (19 CFR 12.130).
Section 12.130 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), Customs Regulations, sets forth criteria
for determining whether a substantial transformation of a textile
product has taken place. This regulation states 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), Customs Regulations, 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 or (iii) Commercial use.
Section 12.130(d)(2), Customs Regulations, states that for
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
(v) The value added to the article or material
Section 12.130(e)(1), Customs Regulations, describes
manufacturing or processing operations from which an article will
usually be considered a product of the country in which those
operations occurred. Section 12.130(e)(1)(v) provides the
following:
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, the final document rule
establishing 19 CFR 12.130:
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
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
situation as they arise, utilizing the criteria in Section
12.130(d).
Customs has consistently determined that cutting fabric into
garment pieces constitutes a substantial transformation of the
fabric, and the clothing pieces become products of the country
where the fabric is cut. (See e.g. Headquarters Ruling Letter
(HRL) 952531, dated November 25, 1992; HRL 089539, dated April
22, 1992; HRL 951426, dated April 8, 1992; HRL 089834, dated
September 26, 1991; and HRL 084979, dated October 23, 1989).
Customs has also long 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 e.g. HRL 082787, dated March 9, 1989; and HRL
082747, dated February 23, 1989).
In this instance, the sewing operation performed in China
involves the simple assembly of various garment pieces. The
sewing does not involve the complex sewing operation required by
Section 12.130(e)(1)(v). The cutting process in Taiwan, however
does amount to a substantial manufacturing operation. The
cutting materially changes the fabric into designated garment
pieces, which constitutes new and different articles of commerce.
Also, the value added to all the subject garments in Taiwan is
substantially more than the value added to the goods in China.
Therefore, pursuant to Section 12.130(e), Styles 35613, 34618,
and 34612 are subject to their last substantial transformation in
Taiwan.
HOLDING:
The country of origin of Styles 35613, 34612, and 34614 is
Taiwan.
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