CLA CO:R:C:T 953903 jb
Mr. Alan R. Klestadt, Esq.
Mr. Harold I. Loring, Esq.
Grunfeld, Desiderio, Lebowitz & Silverman
12 East 49th Street
New York, NY 10017
RE: Country of Origin determination for pants and skirts
Dear Mr. Klestadt and Mr. Loring:
This letter is in response to your inquiry of April 16,
1993, on behalf of your client, Cygne Design, Inc., requesting a
country of origin determination for pants and skirts. Samples of
the finished pants and skirts, i.e., after assembly, as well as
samples of the component parts, before assembly, were submitted
to this office for examination.
FACTS:
The submitted samples consist of two pairs of pants, one
pair unlined and one pair lined, and two skirts, also unlined and
lined.
You state that Cygne Design is contemplating a multiple
country processing operation whereby bolts of fabric from Europe
and/or Asia will be imported into France. In France master
markers will be placed on the fabric and components for skirts
and pants will be cut. The pants and skirt components from
France will then be shipped to Hong Kong or Korea for assembly
and finishing.
The two skirt and pants styles in the completed and
disassembled condition are as follows:
Unlined Skirt:
The skirt is woven and constructed from three basic
panels. There are also ten small textile pieces and
twelve small pieces of interlining. The skirt panels
which comprise the basic body of the skirt are not
rectangles, but rather contoured pieces which are
dedicated to use as skirt components. The completed
skirt will feature a zipper, back pocket, belt loops,
and darts.
Lined Skirt:
The woven lined skirt has the same three basic panels,
except in order to form a lining, three corresponding
lining pieces are required (and two extra trim pieces).
Ten small textile pieces are also needed for this
version, as well as twelve small pieces of interlining.
Unlined Pants:
The pants are woven and constructed from four basic
panels. There are twenty-nine small textile pieces,
including fabric, trim and interfacing. The unlined
pants will feature a side zipper, two front pockets,
and one back pocket with flap.
Lined Pants:
The woven lined pants are also constructed from four
basic panels and have the same features as the unlined
version, but in order to form a lining, four
corresponding lining pieces are required. As in the
unlined version, approximately the same number of small
textile pieces including fabric, trim and interfacing
are required.
ISSUE:
What is the country of origin of the merchandise at issue?
LAW AND ANALYSIS:
Section 12.130 of the Customs Regulations (19 CFR 12.130)
sets forth the principles of country of origin for textiles and
textile products subject to Section 204 of the Agricultural Act
of 1956, as amended (7 U.S.C. 1854).
Pursuant to 19 CFR 12.130(b), the standard of substantial
transformation governs the country of origin determination where
textiles and textile products are processed in more than one
country. The country of origin of textile products is deemed to
be that foreign territory or country where the article last
underwent a substantial transformation. Substantial
transformation is said to occur when the article has been
transformed into a new and different article of commerce by means
of substantial manufacturing or processing.
The factors to be applied in determining whether or not a
manufacturing operation is substantial are set forth in 19 CFR
12.130(d). Section 12.130(e)(1) describes manufacturing or
processing operations from which an article will usually be
considered a product of the country in which those operations
occurred.
Section 12.130(e)(1)(v) states that an article will be a
product of a particular foreign country, when it has undergone
prior to importation into the U.S. in that foreign country:
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 of all cut pieces of suit-type jackets, suits and
shirts).
We have previously held that cutting of fabric into pattern
pieces constitutes a substantial transformation of the fabric,
resulting in the apparel pieces becoming a product of the country
where the fabric is cut. Customs has also held that the mere
assembly of goods entailing simple combining operations, trimming
or joining together by sewing is not enough to substantially
transform the components of an article into a new and different
article of commerce. (See HQ 082747, dated February 23, 1989; HQ
086665, dated March 23, 1990; HQ 951169, dated April 1, 1992; HQ
951437, dated July 17, 1992; HQ 734392, dated August 4, 1992;
HQ 953489, dated June 14, 1993; HQ 953698, dated July 19, 1993).
The sewing operation performed in the third country involves
the simple assembly of several cut pattern pieces to form either
the pants or skirts. The sewing does not involve the complex
sewing operation contemplated by Section 12.130(e)(1)(v), as for
example, that found in the assembly and tailoring of all cut
pieces of suit-type jackets, suits and shirts.
The cutting in France materially changes the fabric into
designated garment parts. This constitutes a substantial
transformation of that fabric.
HOLDING:
The country of origin of the submitted merchandise is
France. It is at the cutting process, in France, that the
textile product undergoes a substantial transformation and is
transformed into a new and different article of commerce.
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 the ruling letter,
either directly, by reference, or by implication, is accurate and
complete in every material respect.
Should it be subsequently 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