CLA-2 CO:R:C:T 088022 CMR
Mr. Phillip Sporidis
North Fyord, Inc.
428 North 13th Street
Philadelphia, PA 19123
RE: Country of origin of certain sweat garments
Dear Mr. Sporidis:
This ruling is in response to your letter of September 28,
1990, requesting a country of origin determination for the
manufacture of certain sweat garments. The production steps for
the manufacture of these garments occur in three countries.
Three sample garments were received with your letter, two sweat
shirt type pullovers and one pair of sweat pants.
FACTS:
The production of the garments begins with the fabric. The
knitted greige goods will be produced in Pakistan of 100 percent
cotton or 80 percent cotton/20 percent polyester French terry
fabric. The greige goods will be dyed and finished in Greece.
The processes involved in the stage of manufacture include
slitting, scouring, dyeing, drying, brushing to create a fleece
surface and final setting of the fabric. The processed fabric
will then be cut in Greece into the garment components. This
cutting operation includes making patterns of all garment
components, creating the marker, spreading the fabric, cutting,
and bundling the garment components sorted by color and size and
packaging the components with all the finding (i.e. labels,
zippers, buttons, draw cords, snaps, logo patches, etc.) and
sewing thread.
The cut fabric components together with all the findings and
thread will be shipped to Bulgaria where they will be assembled
by sewing into finished garments. The sewing process involves
the use of three types of sewing machines: overlock stitch, two
needle (coverstitch), and single needle.
The finished garments will be shipped back to Greece where
they will be inspected, preshrunk, folded, tagged (with hangtag)
and packed.
-2-
ISSUE:
What is the country of origin of the sweat garments at
issue?
LAW AND ANALYSIS:
Country of origin determinations for textile articles are
governed by the criteria enunciated in volume 19, Code of Federal
Regulations, section 12.130. Section 12.130(d) sets out the
basic guidelines for determining the country of origin of
textiles or textile articles. While not exhaustive,
considerations include: whether a new and different article of
commerce is created as a result of a manufacturing or processing
operation and whether merchandise has been subjected to
substantial manufacturing or processing operations.
In determining whether a new and different article of
commerce is created, changes, if any, in the commercial
designation or identity, fundamental character, or commercial use
are considered. In determining whether merchandise has been
subjected to substantial manufacturing or processing operations,
the following factors are considered: physical changes in the
material or article as a result of manufacturing or processing
operations, the time required and complexity of manufacturing or
processing operations, the level or degree of skill and/or
technology required in the manufacturing or processing, and the
value added to the article or material.
You indicate in your submission that the dyeing, finishing
and cutting operations which occur in Greece are complex and
require highly skilled lab technicians, chemists and cutters.
Your further indicate that unskilled to semi-skilled workers
perform the majority of the sewing operations necessary to
assembly the garments in Bulgaria. You submitted information on
costs per process, but no information on time required. However,
we believe we have sufficient information to make a decision.
Having examined the garments and considering the amount of
processing occurring in Greece (dyeing, finishing and cutting)
and the nature and costs of these operations (approximately 31
percent of the total), we do not believe the assembly of the
components into finished garments in Bulgaria is sufficient to
convey country of origin.
HOLDING:
The country of origin for the purposes of marking, textile
quota restraints and Customs duty assessment for the submitted
sweat garments, produced as described above, is Greece.
-3-
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