CLA-2 CO:R:C:T 952647 CC
Judith A. Schechter, Esq.
Grunfeld, Desiderio, Lebowitz & Silverman
12 East 49th Street
New York, NY 10017
RE: Country of origin of girls' shorts and shirts
Dear Ms. Schecter:
This letter is in response to your inquiry of September 21,
1992, requesting the country of origin of girls' garments.
Samples of the garments, plus bundles consisting of the garments'
constituent parts, were submitted for examination.
FACTS:
You have requested country of origin determinations for 3
styles of girls' garments. Style 307 is a girls' 100 percent
cotton knit bike short. The garment, which is composed of four
panels, features a covered elasticized waistband and hemmed legs.
Style 229 is a girls' 100 percent cotton knit "lettuce leaf" V-
neck shirt. The garment resembles a girls' short-sleeved
underwear T-shirt except for its ruffled neckline, which is
attached to the garment by simple seaming. Style 222 is a girls'
100 percent cotton knit "lettuce leaf" trapeze-style tank shirt.
Like Style 229, this style resembles a girls' sleeveless
underwear T-shirt except for its ruffled scoop neckline, which is
attached to the garment by simple seaming.
According to your submissions, the fabric will be knit,
marked, and cut into garment components in Greece. The cut
components and trim (i.e., elastic and labels) will be sent to
Bulgaria for assembly by sewing. The finished garments will be
packaged and returned to Greece before being sent to the United
States.
The relative costs of the various production operations for
these styles are as follows:
Fabric (Greece) 53%
Cutting (Greece) 3%
Sewing (Bulgaria) 22%
Packaging (Bulgaria) 3%
Accessories (Greece) 11%
Profit (Greece) 8%
ISSUE:
What is the country of origin for the merchandise at issue?
LAW AND ANALYSIS:
Country of origin determinations for textile products are
subject to Section 12.130 of the Customs Regulations (19 CFR
12.130). Section 12.130(b) provides that a textile product that
is processed in more than one country or territory shall be a
product of that country or territory where it last underwent a
substantial transformation. A textile product will be considered
to have undergone a substantial transformation if it has been
transformed by means of substantial manufacturing or processing
operations into a new and different article of commerce.
Section 12.130(d) of the Customs Regulations sets forth
criteria in determining whether a substantial transformation of a
textile product has taken place. This regulation states that
these criteria are not exhaustive; one or any combination of
criteria may be determinative, and additional factors may be
considered.
Section 12.130(d)(1) states 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) of the Customs Regulations states that
in determining whether merchandise has been subjected to
substantial manufacturing or processing operations, the following
will be considered:
(i) The physical change in the material or article as a
result of the manufacturing or processing operations in each
foreign territory or country, or insular possession of the
U.S.
(ii) The time involved in the manufacturing or processing
operations in each foreign territory or country, or insular
possession of the U.S.
(iii) The complexity of the manufacturing or processing
operations in each foreign territory or country, or insular
possession of the U.S.
(iv) The level or degree of skill and/or technology required
in the manufacturing or processing operations in each
foreign territory or country, or insular possession of the
U.S.
(v) The value added to the article or material in each
foreign territory or country, or insular possession of the
U.S., compared to its value when imported into the U.S.
Section 12.130(e)(1) of the Customs Regulations describes
manufacturing or processing operations from which an article will
usually be considered a product of the country in which the
processes occurred. Section 12.130(e)(1)(v) provides the
following:
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).
According to T.D. 85-38 (19 Cust. Bull. 58, 70; 50 FR 8714),
the final document rule establishing 19 CFR 12.130:
[T]he assembly of all the cut pieces of a garment usually is
a substantial manufacturing process that results in an
article with a different name, character, or use than the
cut pieces. It should be noted that not all assembly
operations of cut garment pieces will amount to a
substantial transformation of those pieces. Where either
less than a complete assembly of all the cut pieces of a
garment is performed in one country, or the assembly is a
relatively simple one, then Customs will rule on the
particular factual situations as they arise, utilizing the
criteria in section 12.130(d).
Customs has consistently ruled that the cutting of fabric
into parts to make garments constitutes a substantial
transformation. (See, e.g., Headquarters Ruling Letter (HRL)
951426 of April 8, 1992 and HRL 089539 of April 22, 1992.)
Therefore the merchandise is substantially transformed in Greece,
where the fabric is cut. The operations performed in Bulgaria do
not require a high degree of skill; they would be considered a
simple assembly as opposed to a tailoring operation. In addition
the value added in Greece is much greater than the value added in
Bulgaria. Consequently, no substantial transformation has taken
place in Bulgaria, and the country of origin for this merchandise
is Greece.
HOLDING:
The country of origin of the merchandise at issue is Greece.
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