CLA-2 CO:R:C:T 956632 GG
Robert T. Stack, Esq.
Siegel, Mandell & Davidson, P.C.
One Astor Plaza
1515 Broadway, 43rd Floor
New York, New York 10036-7900
RE: Country of Origin of Dressing Gowns (Kimonos)
Dear Mr. Stack:
This is in response to your letter of June 10, 1994,
concerning the country of origin of dressing gowns (kimonos) to
be imported by your client, Intimo, Ltd. Representative samples
of a dressing gown and the component parts thereof have been
submitted with your ruling request.
FACTS:
The apparel in question is a dressing gown (kimono), known
as Style 530000. It consists of the following components: three
body panels, two front and one back; two sleeve panels; two patch
pockets with separate pocket edging; two sleeve cuffs; a sash
belt, two belt loops, and two 4-inch wide bands of fabric that
will be used to create a trim extending the length of the
kimono's front opening and around the neck. The kimono also may
contain piping at the pockets, cuffs and trim.
The kimonos will be produced in various fabrics, colors and
prints. The fabrics will be obtained from sources in Hong Kong,
Korea or the People's Republic of China ("China"). The
accessories (labels and any piping for the pocket, cuffs and
trim) also will be sourced from various countries, including Hong
Kong and China.
The fabric will be cut with an electric knife into the
various components in Hong Kong. The assembly operations will
occur in China and will consist of sewing the components together
by machine to create the completed kimonos. The garments will be
washed, pressed and folded, have hang tags attached, and be
packed for shipment to the United States in China. The piping,
if present, will be cut to length in China.
ISSUE:
What is the country of origin of the kimonos?
LAW AND ANALYSIS:
Country of origin determinations for textile products are
made pursuant 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)(1) of the Customs Regulations 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;
(ii) The time involved in the manufacturing or processing;
(iii) The complexity of the manufacturing or processing;
(iv) The level or degree of skill and/or technology
required in the manufacturing or processing
operations; and
(v) The value added to the article or material.
Section 12.130(e)(1) of the Customs Regulations describes
manufacturing or processing operations from which an article
usually will be considered a product of the country in which
those operations 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 Treasury Decision (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 determined that cutting fabric into
garment pieces constitutes a substantial transformation of the
fabric, resulting in the pieces becoming products of the country
where the fabric is cut. See Headquarters Ruling Letter (HRL)
955123, dated January 27, 1994; HRL 954448, dated August 19,
1993; HRL 953698, dated July 19, 1993.
It has also been Customs' position that the mere assembly of
goods by 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 HRL 953697, dated July 26, 1993; HRL 955123, dated
January 27, 1994; HRL 952647, dated January 27, 1993.
In this instance, the kimonos will be assembled in China
through simple sewing operations. The sewing will not be complex
enough to be deemed a substantial assembly under Section
12.130(e)(1)(v). The last substantial transformation will occur
in Hong Kong, where the fabric is cut into garment pieces. The
cutting of the piping to length in China will have no effect on
origin because the piping is de minimus in relation to the
garments at issue. See HRL 954711, dated January 19, 1994.
HOLDING:
The country of origin of the kimonos is Hong Kong.
This ruling is issued pursuant to the provisions of Part 177
of the Customs Regulations (19 CFR Part 177). The holding in
this ruling only applies to the specific factual situation
presented and to the merchandise identified in the ruling
request. If the information furnished is not accurate or
complete, or there is a change in the factual situation, this
ruling will no longer be valid. In such an event, a new ruling
request should be submitted.
Sincerely,
John Durant
Director, Commercial