CLA-2 CO:R:C:T 955122 jb
Mr. Marcel Lepine
Omnitrans Inc.
407, Rue McGill
Montreal, Quebec H2Y 2G3
RE: Country of origin determination regarding wool gloves
Dear Mr. Lepine:
This is in reply to your letter, on behalf of your client,
Paris Gloves of Canada Ltd., dated August 13, 1993, requesting a
country of origin determination and eligibility under the United
States Canada Free Trade Agreement (CFTA) for a pair of wool
gloves. With regard to your question concerning eligibility for
preferential tariff treatment under the CFTA, please be advised
that the North American Free Trade Agreement (NAFTA) will enter
into force on January 1, 1994, on an exchange of written
notifications between the NAFTA Parties certifying the completion
of necessary legal procedures. Pursuant to Section 107 of the
North American Free Trade Implementation Act, the operation of CFTA
is to be suspended by virtue of entry into force of NAFTA.
FACTS:
The subject merchandise, referred to as Style 6T-018, is a
knit glove constructed of 85 percent wool and 15 percent nylon.
The glove has a thinsulate lining and overlaid deerskin
reinforcement on the palm and palm-side of the thumb and fingers.
You state that the leather palms, cut to shape in Canada from North
American deerskin, are then sent to China where they are sewn to
the textile gloves. The gloves are then exported from China to
Canada where a thinsulate lining of Canadian origin is permanently
sewn onto the gloves.
Your ruling request was originally addressed by our New York
office in New York Ruling Letter (NYR) 890396, dated September 15,
1993, which determined that proper classification for the item is
in subheading 6116.91.0000, HTSUSA. As that ruling provided you
with a classification determination this will not be addressed in
the present ruling.
ISSUE:
What is the country of origin of the subject item?
LAW AND ANALYSIS:
Country of origin
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(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(e)(1) of the Customs Regulations states that
an article or material usually will be a product of a particular
foreign territory or country when it has undergone prior to
importation into the U.S. in that foreign territory or country any
of the following:
(iii) Weaving, knitting or otherwise forming fabric
The item at issue is knit to shape in China. As indicated
by the Customs Regulations, this forms the fabric and is considered
a substantial manufacturing operation. Neither the addition of the
leather palm nor the lining changes the identity, fundamental
character or commercial use of the glove. As such, the glove is
deemed to be a product of China.
HOLDING:
The country of origin of the glove, Style number 6T-018, is
China. It is in China where the fabric is knit to shape; this is
considered a substantial manufacturing process for purposes of
conferring country of origin.
The glove is a product of China and is subject to visa
requirements and quota restraints.
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