CLA-2 CO:R:C:G 085799 CB
Frank J. Desiderio, Esq.
Grunfeld, Desiderio, Lebowitz & Silverman
12 East 49th Street
New York, NY 10017
RE: Country of Origin Determination Request
Your Reference: 89-1222-10(58)I
Dear Mr. Desiderio:
This letter is in response to your letter of October 11,
1989, on behalf of Bernard Chaus, Inc., requesting a country of
origin determination under the Harmonized Tariff Schedule of the
United States Annotated (HTSUSA), for knit sweaters.
FACTS:
According to your letter, the knit sweater panels (back,
front, and two sleeves) are knit to shape, or cut, in India and
are shipped to the Peoples Republic of China where the panels are
assembled (viz. joined by looping or sewing, trimmed and labeled
with materials from other locales) and finished (viz. washed,
pressed, and packaged.) You also stated that the countries
involved may vary.
You have indicated that the subject merchandise manufactured
in this fashion (50 pieces) is currently the subject of Entry
#109-0229027-8 at JFK International Airport. Apparently, the
entry has been, or soon will be, accepted by the local Customs
officials but has not been liquidated.
ISSUE:
Which is the proper country of origin for the subject
garments under the HTSUSA?
LAW AND ANALYSIS:
A country of origin determination regarding textiles and
textile products is governed by 19 CFR 12.130. The regulations
-2-
provide that textile products which are produced in more than one
foreign country shall be a product of that foreign country where
it last underwent a substantial transformation. A substantial
transformation is defined as a manufacturing or processing
operation which results in a new and different article of
commerce.
Section 12.130(e)(2)(iii) also provides that an article will
not be considered a product of a foreign country merely by
undergoing:
Trimming and/or joining together by sewing, looping,
linking, or other means of attaching otherwise
completed knit-to-shape component parts produced in a
single country...
Therefore, under the circumstances you have described, where the
sweater panels are merely sewn together in the Peoples Republic
of China, it is clear that under the regulations no substantial
transformation has occurred. Consequently, India is the country
of origin of the sweaters.
HOLDING:
The country in which the sweater panels are knit to shape,
or cut, is the country of origin of the sweaters.
Sincerely,
John Durant, Director
Commercial Rulings Division