CLA-2 CO:R:C:T 957481 SK
Patti Filshie
El & El Novelty Co. Inc.
152 West 36th Street
New York, N.Y. 10018-6996
RE: Country of origin determination for women's tank tops; fabric
knit, dyed and cut in Taiwan; simple assembly in China; 19 CFR
12.130(b)(d)(e); cutting constitutes substantial transformation.
Dear Ms. Filshie:
This is in response to your letter of December 30, 1994, in
which you request a country of origin determination for nine
styles of women's tank tops. Samples of the finished garments
were submitted to this office for examination.
In Headquarters Ruling Letter (HRL) 956728, dated October
24, 1994, this office issued a country of origin determination
for two styles of women's tank tops, referenced style numbers
97507 and 97508. You state that the nine styles of women's tops
currently under review should have been ruled upon in HRL 956728
inasmuch as they undergo the same manufacturing processes in
Taiwan and China and are identical to the garments the subject of
that ruling. Customs will therefore base this country of origin
determination on the factual information presented in HRL 956728.
FACTS:
You have requested a country of origin determination for
nine styles of women's 65 percent polyester/35 percent cotton
jersey knit tank-style tops. The garments are identified as style
numbers: 7507; 7507A; 67507; 7508; 7518; 67518
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(missy sizes); 97507A; 87508; and 87518 (larger sizes). The tops
are either in solid colors, or feature a print. The sleeveless
upper body garments are designed in a tank
top style and feature double needle stitching around their
necklines, armholes and shirttail bottom hems. The tops have six
button plackets on their fronts.
The fabric for the subject garments is knit, dyed and cut
into piece goods in Taiwan. In China, the garments' four
component parts are assembled into the completed article, the
buttons are sewn on, and the garment is labeled, trimmed, ironed,
inspected, and packed for shipment to the United States.
ISSUE:
What is the country of origin for style numbers 7507; 7507A;
67507; 7508; 7518; 67518; 97507A; 87508; and 87518?
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;
(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:
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(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;
(v) The value added to the article or material;
Section 12.130(e)(1) provides that an article or material
usually will be a product of a particular foreign territory or
country, or insular possession of the United States, when, prior
to importation into the United States, it has undergone in that
foreign territory or country or insular possession, any of the
following:
(i) Dyeing of fabric and printing when accompanied by two
or more of the following finishing operations:
bleaching, shrinking,
fulling, napping, decating, permanent stiffening, weighting,
permanent embossing, or moireing;
(ii) Spinning fibers into yarn;
(iii) Weaving, knitting or otherwise forming fabric;
(iv) Cutting of fabric into parts and the assembly of those
parts
into the completed article; or
(v) 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
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be noted that not all assembly operations of cut garment
pieces
will amount to a substantial transformation of those pieces.
Where
either less than 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)."
This office has consistently 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 Headquarters Ruling Letters (HRL's) 082747, dated
February 23, 1989; 086665, dated March 23, 1990; 951169, dated
April 1, 1992; 951437, dated July 17, 1992; 952647, dated January
27, 1993.
In the instant case, the assembly operations performed in
China are mere combining and sewing operations and do not possess
the requisite degree of complexity to be deemed substantial
manufacturing processes for purposes of conferring country of
origin status. No great degree of skill or advanced technology
is required, nor is tailoring involved. The cutting operations
in Taiwan, however, materially alter the fabric into designated
garment pieces. This constitutes a substantial transformation of
that fabric and Taiwan is the country of origin for the subject
garment.
HOLDING:
The country of origin of the women's tank-style tops,
referenced style numbers 7507, 7507A, 67507, 7508, 7518, 67518,
97507A, 87508 and 87518, is Taiwan. It is during the cutting
process in Taiwan that the fabric last undergoes a substantial
transformation and is transformed into a new and different
article of commerce (a women's top) by means of substantial
manufacturing operations (cutting the fabric into designated
garment parts).
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 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
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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