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HQ 085799

November 28, 1989

CLA-2 CO:R:C:G 085799 CB

CATEGORY: CLASSIFICATION

Frank J. Desiderio, Esq.
Grunfeld, Desiderio, Lebowitz & Silverman 12 East 49th Street
New York, NY 10017

RE: Country of Origin Determination Request Your Reference: 89-1222-10(58)I

Dear Mr. Desiderio:

This letter is in response to your letter of October 11, 1989, on behalf of Bernard Chaus, Inc., requesting a country of origin determination under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA), for knit sweaters.

FACTS:

According to your letter, the knit sweater panels (back, front, and two sleeves) are knit to shape, or cut, in India and are shipped to the Peoples Republic of China where the panels are assembled (viz. joined by looping or sewing, trimmed and labeled with materials from other locales) and finished (viz. washed, pressed, and packaged.) You also stated that the countries involved may vary.

You have indicated that the subject merchandise manufactured in this fashion (50 pieces) is currently the subject of Entry #109-0229027-8 at JFK International Airport. Apparently, the entry has been, or soon will be, accepted by the local Customs officials but has not been liquidated.

ISSUE:

Which is the proper country of origin for the subject garments under the HTSUSA?

LAW AND ANALYSIS:

A country of origin determination regarding textiles and textile products is governed by 19 CFR 12.130. The regulations
provide that textile products which are produced in more than one foreign country shall be a product of that foreign country where it last underwent a substantial transformation. A substantial transformation is defined as a manufacturing or processing operation which results in a new and different article of commerce.

Section 12.130(e)(2)(iii) also provides that an article will not be considered a product of a foreign country merely by undergoing:

Trimming and/or joining together by sewing, looping, linking, or other means of attaching otherwise completed knit-to-shape component parts produced in a single country...

Therefore, under the circumstances you have described, where the sweater panels are merely sewn together in the Peoples Republic of China, it is clear that under the regulations no substantial transformation has occurred. Consequently, India is the country of origin of the sweaters.

HOLDING:

The country in which the sweater panels are knit to shape, or cut, is the country of origin of the sweaters.

Sincerely,

John Durant, Director

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