CLA-2 CO:R:C:T 954711 CMR
Robert Stack, Esq.
Siegel, Mandell & Davidson, P.C.
One Astor Plaza
1515 Broadway, 43rd Fl
New York, New York 10036-8901
RE: Country of origin request for two styles of denim jeans;
cutting in one country, assembly in another; Section 12.130
Dear Mr. Stack:
This is in response to your request of July 22, 1993, on
behalf of your client, Lazeon Corporation, regarding a country of
origin determination for two styles of denim jeans in which the
production involves processing in more than one country.
Supplemental information requested by this office was received
January 6, 1994. Sample garments were received with your initial
submission.
FACTS:
The two styles of denim jeans at issue will be made of either
100 percent cotton or blends of cotton, polyester, rayon and
spandex denim fabric.
Style D is similar to a five pocket denim jean. Style D has
a fly front with a zipper closure, a button closure at the
waistband, two rear patch pockets, two front scoop pockets, a coin
pocket within one of the front pockets, five single belt loops, and
a horizontal "X" single-stitched across each of the rear patch
pockets. Style D varies from the typical five pocket jeans in that
the garment has a lengthwise panel added at the side seam of each
pant leg. The side panels are approximately four inches wide and
run from the bottom up the side of the pant leg to about the lower
hip/upper thigh area. Each panel has twelve pairs of bullet-
shaped tabs sewn at regular intervals along the seam where the side
panel meets the front and back leg panels. The tabs are
approximately 1-3/4 inches in length and taper from a width of
approximately 1-3/8 inches to 1/2 inch. The tabs consist of two
pieces of denim fabric sewn together with a button hole added at
the tapered end of each tab. A denim cord -2-
(consisting of a thin piece of denim fabric, folded in half and
single stitched) is threaded through the button holes of each tab
and its ends are tied into a bow at the bottom of the pants leg.
Style E is similar to style D except the vertical panels added
at the side seam of each pant leg is somewhat different than that
of style D. In style E, the vertical panels start at the bottom
of the front scoop pocket and run the length of each pant leg.
Each side panel is tapered in width from approximately 2-1/4 inches
at the top to 1-3/4 inches at the bottom. Eighteen criss-crossed
pairs of 2-3/4 inch long strips of belt loop material are attached
at regular intervals at the seams where the side panel meets the
front and back leg panels.
The production of each garment will involve processing in
three countries: Hong Kong, Israel and the People's Republic of
China. We will refer to Hong Kong as Country A, Israel as Country
B and China as Country C, as you did in your submission.
The fabric for the garments will be woven in either Country
A or Country B. The zippers, buttons and rivets will be sourced in
either Country A, Country B, Country C or another country. The
pocket linings for both styles will be sourced in any of the three
countries and will be cut in Country B or Country C. The garment
labels will be sourced from any of the three countries or possibly
another country.
In Country B, the fabric will be cut into garment pieces.
The cutting operation consists of laying out the fabric to form a
number of plies, placing the pattern on the top ply and cutting
out the garment pieces with an electric knife. The cut pieces
consist of: two back yoke panels, two front and two back leg/rise
panels, waistband and components, two patch pockets, cut belt
loops, side panels, the denim cord and tabs for style D, the denim
strips for style E.
The cut pieces will be sent to Country C for complete assembly
into jeans. The assembly operation consists of sewing the cut
panels together by machine and attaching the belt loops, button,
rivets, zipper and labels to create the completed jeans. The
assembly operation requires the following processes, which are not
necessarily listed in order:
1. feeding the back yoke, back rise and waistband;
2. double needle stitching the front pocket, coin pocket,
and back pocket;
3. over-locking the front pocket
4. double needle stitching the zipper and attaching the fly
front
5. single needle stitching the front pocket, back pocket and
fly front, and placing the belt loops -3-
6. over-locking the side seam
7. single needle stitching the side seam
8. feeding the inseam
9. hem stitching the leg bottom
10. bar tacking
11. stitching the button hole
12. placing the button and rivets.
Additional steps for the individual styles include the
following:
For Style D:
1. sewing together the tab inserts and making the
button-holes;
2. tabs and side panels will be simultaneously single
needle stitched at the side seams and front
panel/side insert seams, with the excess fabric
overlocked;
3. the denim cord will be threaded through the button
-holed tabs.
For Style E:
1. the denim strips for the side panels will be sewn;
2. the side panels and the criss-crossed denim strips
will be single needle stitched at the side seams and
the excess inside excess inside fabric overlock
stitched
After assembly, the garments will be inspected, washed
(bleached), pressed, folded, have hang tags attached and be packed
for shipment to the United States.
In your supplemental information, you have indicated that the
possible bleaching processes in the washing step include enzyme
washing or stone washing. Additionally, the finishing may involve
overdyeing in place of, or in addition to, the bleaching.
ISSUE:
What is the country of origin of the jeans at issue?
LAW AND ANALYSIS:
Country of origin determinations for textiles and textile
articles are governed by the terms of section 12.130 of the Customs
Regulations (19 CFR 12.130). Section 12.130(b) provides that a
textile or textile product which is processed in more than one
country will be considered a product of that country where it -4-
last underwent a substantial transformation. A substantial
transformation is defined therein as a transformation by means of
substantial manufacturing or processing operations into a new and
different article of commerce.
Section 12.130(d)(1) provides 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) sets out factors which will be considered
in determining if merchandise has been subjected to substantial
manufacturing or processing operations. These factors are:
(i) The physical change in the material or article as a
result of the manufacturing or processing operations
(ii) The time involved in the manufacturing or processing
(iii) The complexity of the manufacturing or processing
(iv) The level or degree of skill and/or technology
required in the manufacturing or processing
(v) The value added to the article or material in each
foreign territory or country compared to its value
which imported into the U.S.
Section 12.130(e)(1)and (e)(2) set out processes which will
normally be considered to be substantial and those which will not
be considered substantial. Section 12.130(e)(1) states, in
pertinent part, that an article will usually be a product of a
particular country which it has undergone in that particular
country:
* * *
(iv) Cutting of fabric into parts and the assembly of those
parts into the completed article; or
(v) Substantial assembly by sewing and/or tailoring of all
cut pieces of apparel article 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).
Section 12.130(e)(2) states, in pertinent part, that an article
will usually not be a product of a particular country by merely
having undergone:
-5-
(i) Simple combining operations, labeling, pressing,
cleaning or dry cleaning, or packaging operations, or
any combination thereof;
* * *
(iv) One or more finishing operations on yarns, fabrics, or
other textile articles, such as showerproofing,
superwashing, bleaching, decating, fulling, shrinking,
mercerizing, or similar operations; or
(v) Dyeing and/or printing of fabrics or yarns.
Customs has issued several rulings on the country of origin
of jeans cut in one country and assembled in another. Based on
these rulings, the assembly of a typical five pocket jean would
not be considered a substantial transformation, and the country of
origin would be that country in which the garment parts have been
cut. In HRL 082747 of February 23, 1989, regarding a situation
wherein garment parts were cut in one country and the jeans
completely assembled from those parts in another, Customs stated:
"In our view, for textile restraint purposes, the assembly of jeans
does not constitute a substantial manufacturing or processing
operation." See also, HRL 951169 of April 1, 1992.
In this case, Styles D and E are variations from typical five
pocket jeans. For that reason, we requested additional information
regarding their production. Having reviewed the submitted
information, we believe that although the assembly of these
garments is more involved and time consuming than that of the
average jeans, so too is the cutting of the garment pieces.
Therefore, we see no reason to deviate in this instance from the
general norm stated in HRL 082747 that the assembly of jeans does
not constitute a substantial manufacturing operation. See also,
HRL 954631 of October 22, 1993 and HRL 954817 of December 3, 1993.
Therefore, the country of origin of the subject jeans is Country
B, the country in which the garment parts are cut.
You have requested that we specifically address whether the
bleaching and/or dyeing performed in the country of assembly will
affect the country of origin determination; and, whether the
sourcing in the country of assembly of the pocket lining material
and accessories (button, rivets, etc.) will affect the origin
determination.
Section 12.130(e)(2), previously cited in part, clearly states
that finishing operations such as washing and bleaching generally
do not convey origin for a textile article. Thus, the washing and
bleaching operations performed in the country of assembly are
viewed as finishing operations which do not affect the origin
determination. -6-
In regard to the sourcing of the pocket lining material and
accessory items, we believe the rulings cited in your submission
for the proposition that the sourcing of these items is immaterial
to the origin determination are not quite on point. However, we
agree with the proposition that these items should not affect the
origin determination on the basis that they are considered de
minimus in relation to the garments at issue.
HOLDING:
The country of origin of styles D and E at issue herein is
the country in which the garment parts are cut, i.e., Country B.
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