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HQ 082050

May 25, 1988

CLA-2 CO:R:C:G 082050 CMR

CATEGORY: CLASSIFICATION

Mr. Jay Sheinfeld
Harry J. Rashti & Co., Inc.
79-89 Bogart Street
Brooklyn, New York 11206

RE: Country of origin determination for certain infants' jogging sets

Dear Mr. Sheinfeld:

This is in response to your request of March 2, 1988 on behalf of Harry J. Rashti & Co., Inc. for a ruling of the country of origin of an infants' two piece jogging set.

FACTS:

The submitted sample, no style number, is an infants' two piece jogging set. The fabric and accessories are made in Hong Kong. This includes plain rolls of fleece fabric, snaps, and rolls of elastic. Printed fronts for the tops will be pre-cut and pre-printed in Hong Kong.

The fabric and accessories, including the pre-cut and pre- printed fronts, will be shipped to Haiti where the rolls of fabric will be cut and assembled with the snaps, elastic, and front panels into finished garments. The garments will then be exported to the United States.

The inquirer plans to manufacture the garments in infant and toddler sizes.

ISSUE:

The country of origin of the submitted sample.

LAW AND ANALYSIS:

Section 12.130 of the Customs Regulations, 19 C.F.R. 12.130, is determinative in this case. Section 12.130(b) provides that a textile or textile product . . .

. . . which consists of materials produced or derived from, or processed in, more than one foreign territory or country, or insular possession of the U.S., shall be a product of that foreign territory or country, or insular possession where it last underwent a substantial transformation. A textile or 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) sets out the criteria for determining the country of origin of imported goods. It provides, in pertinent part:

The criteria in paragraphs (d) (1) and (2) of this section shall be considered in determining the country of origin of imported merchandise. These criteria are not exhaustive. One or any combination of criteria may be determinative, and additional factors may be considered.

(1) 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.

(2) 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 . . .
(iii) The complexity of the manufacturing or processing in each . . .
(iv) The level or degree of skill and/or technology required in the manufacturing or processing in each . . .
(v) The value added to the article or material in each . . ., compared to its value when imported into the U.S.

Section 12.130(e) deals with manufacturing or processing operations and its relevant provisions are:

(1) An article or material usually will be a product of a particular foreign territory or country, or insular possession of the U.S., when it has undergone prior to importation into the U.S. in that foreign territory or country, or insular possession any of the following: (iv) Cutting of fabric into parts and the assembly of those parts into the completed article;
(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).

Applying the provisions of Section 12.130 to the facts as presented, the manufacturing operation which will occur in Haiti clearly falls within the meaning of "substantial transformation" as used in Section 12.130(b).

HOLDING:

Provided the facts as presented do not change, the country of origin of the above described merchandise is Haiti.

Sincerely,

John Durant

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