CLA-2 CO:R:C:T 952536 HP
Mr. William W. Jackson
Partner
Woo Brown Jackson
P.O. Box 779 Boroko
Papua New Guinea
RE: Country of origin of t-shirts.
Dear Mr. Jackson:
This is in reply to your letters of September 10, 1992, and
January 12, 1993. Those letters requested a country of origin
determination of t-shirts. Please reference your client Woo
Textile Corp. Pty. Ltd.
FACTS:
The merchandise at issue consists of either knitted or woven
t-shirts, either 100 percent cotton or a 65 percent polyester /
35 percent cotton blend. Presently, the knitted fabrics come
into Papua New Guinea (PNG) from either Australia, Japan, Hong
Kong or Singapore in rolled bundles with an average weight of 45
pounds. The woven material comes from the same countries,
"rolled normally with 44/45 x 120 yards." At this time, the
garments are cut, sewn, trimmed and finished in PNG.
You now question as to the country of origin of "pre-cuts to
be finished off in PNG" for export to the United States. It is
our understanding that the fabric will be either knitted or woven
and cut to patterned sizes and shapes in either Australia, Japan,
Hong Kong or Singapore, and the patterned pieces assembled into
t-shirts, packaged and shipped in PNG.
ISSUE:
Whether the assembly in PNG of the cut patterned pieces
results in a substantial transformation for purposes of 12.130,
Customs Regulations?
LAW AND ANALYSIS:
Textile commodities produced in more than one foreign
country are subject to the country of origin requirements
delineated in section 12.130 of the Customs Regulations (19
C.F.R. 12.130). These regulations provide that:
. . . a textile product . . . which consists
of materials produced or derived from, or
processed in, more than one foreign . . .
country shall be a product of that foreign .
. . country where it last underwent a
substantial transformation.
12.130(b). A textile product undergoes a substantial
transformation when it is ". . . transformed by means of
substantial manufacturing or processing operations into a new
and different article of commerce."
Section 12.130 of the regulations outlines the criteria used
to determine the country of origin for textiles and textile
products. Specifically, this provision of the regulations is
considered in determining whether a textile product has undergone
substantial manufacturing or processing operations, and what
constitutes a new and different article of commerce. The factors
considered are not exhaustive. In fact, "one or any combination
of criteria may be determinative, and additional factors may be
considered." In determining whether merchandise has undergone
substantial manufacturing or processing operations, we consider
the (1) physical change in the material or the article; (2) time
involved; (3) complexity of the operations; (4) level or degree
of skill and/or technology required; and (5) value added to the
article in each country.
It is well accepted that the cutting of fabric into
necessary patterned pieces and assembly of those pieces into the
completed article results in a substantial transformation of the
fabric. See HRL 734394 of February 10, 1992; HRL 556070 of July
1, 1991. A substantial transformation does not occur, however,
when those patterned pieces are shipped to a third country and
merely assembled. See HRL 555489 of May 14, 1990; HRL 086229 of
April 11, 1990; HRL 731036 of July 18, 1989.
Examining the merchandise at issue, it is our opinion that
the assembly operations performed in PNG do not substantially
transform the t-shirts into products of PNG. Those operations
constitute a simple sewing of the cut patterned pieces into a t-
shirt. This assembly is distinguished from the complex sewing
operations required when manufacturing a suit, suit-type jacket,
or tailored shirt. See 12.130(e)(v), Customs Regulations. The
t-shirts would therefore be considered products of the country
where the fabric was created and the patterned pieces cut to
shape.
HOLDING:
As a result of the foregoing, the t-shirts are considered a
product of country "A", where the fabric was created and the
patterned pieces cut to shape.
The holding in this ruling applies only to the specific
factual situation and merchandise identified in the ruling
request. This position is clearly set forth in 177.9(b)(1),
Customs Regulations (19 C.F.R. 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 C.F.R. 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. In such a case, it is recommended that a
new ruling request be submitted in accordance with 177.2,
Customs Regulations (19 C.F.R. 177.2).
A copy of this ruling letter should be attached to the entry
documents filed at the time this merchandise is imported. If the
documents have been filed without a copy, this ruling should be
brought to the attention of the Customs officer handling the
transaction.
Sincerely,
John Durant, Director
Commercial Rulings Division