CLA-2 CO:R:C:G 084427 CMR

TARIFF NO.:

Brenda Jacobs, Esq.
Sharretts, Paley, Carter & Blauvelt, P.C.
1707 L Street, N.W.
Washington, D.C. 20036

RE: Country of origin and marking of woven pants assembled in the Philippines

Dear Ms. Jacobs:

This ruling is in response to your letter of May 2, 1989, on behalf of your client, the Izod Lacoste Division of Crystal Brands, requesting confirmation of the country of origin of men's woven pants assembled in the Philippines of Taiwanese components.

FACTS:

The pants at issue will be made from 100 percent cotton woven fabric that will be made and cut in Taiwan. The piece goods, valued at U.S.$50.00 per dozen, will then be assembled in the Philippines. The cutting operation in Taiwan will cost U.S.$1.50 and require 12 minutes of labor per dozen. Findings and trimmings for the pants, including zippers, buttons, and thread will be made in Taiwan and together cost U.S.$12.50 per dozen.

The assembly operation in the Philippines will involve the sewing together of 17 panels (including the shell components, linings, interfacings, and pocketing), 1 belt loop, and 2 waistband panels. The assembly operation will cost U.S.$26.00 and involve 800 minutes of labor per dozen.

ISSUE:

Is the processing operation in the Philippines sufficient to confer country of origin?

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LAW AND ANALYSIS:

Section 12.130 of the Customs Regulations pertains to country of origin determinations for textiles and textile products. The pertinent portion of Section 12.130 provides:

(e) Manufacturing or processing operations

(1) 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).

* * *

The operations as described in your letter fall clearly within the section 12.130(e)(1)(v) provision quoted above. Therefore, due to the assembly operation which will occur in the Philippines, the country of origin of the cotton pants will be the Philippines.

Section 304 of the Tariff Act of 1930, as amended (19 U.S.C. 1304), requires that every article of foreign origin (or its container) imported into the United States shall be marked in a conspicuous place as legibly, indelibly and permanently as the nature of the article (or container) will permit, in such a manner as to indicate to an ultimate purchaser in the United States the English name of the country of origin of the article. Additional labeling requirements are applicable to textile products under the Textile Fiber Products Identification Act (15 U.S.C. 70).

A label securely and conspicuously affixed to the pants indicating the Philippines as the country of origin will satisfy the requirements of 19 U.S.C. 1304. Labels such as "Made in the Philippines" or "Made in the Philippines from fabric produced in Taiwan" are acceptable for purposes of this statute.

The designated textile and apparel category may be subdivided into parts. If so, the visa and quota requirements applicable to the subject merchandise may be affected. Since part categories are the result of international bilateral agreements which are subject to

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frequent renegotiations and changes, to obtain the most current information available, we suggest you check, close to the time of shipment, the Status Report On Current Import Quotas (Restraint Levels), an issuance of the U.S. Customs Service, which is updated weekly and is available at your local Customs office.

Due to the changeable nature of the statistical annotation (the ninth and tenth digits of the classification) and the restraint (quota/visa) categories, you should contact your local Customs office prior to importation of this merchandise to determine the current status of any import restraints or requirements.


Sincerely,

John Durant, Director
Commercial Rulings Division

6cc: Area Director, New York Seaport
1cc: CITA
1cc: Legal Reference Section
1cc: Phil Robins