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HQ 087532

November 7, 1990

CLA-2 CO:R:C:G 087532 CMR

CATEGORY: CLASSIFICATION

Alan G. Lebowitz, Esq.
Harold I. Loring, Esq.
Grunfeld, Desiderio, Lebowitz & Silverman 12 East 49th Street
New York, New York 10017

RE: Country of origin of a crew neck fleece top

Dear Messrs. Lebowitz and Loring,

This ruling is in response to your submission of July 9, 1990 [supplemented by an August 30, 1990, submission], on behalf of Mamiye Brothers, Inc., requesting a ruling on the country of origin of a crew neck fleece top. Samples were received with your submission.

FACTS:

According to your submission, the garment at issue is will be manufactured in the following manner:

In Malaysia:

(1) two different fabrics will be knit (i.e., fleece- knit and ribbed-knit piece goods;
(2) the fabrics will be dyed and, in the case of the fleece-knit fabric, also printed;
(3) the printed fleece fabric and ribbed-knit fabric will be wound on bolts ready for shipment; (4) a portion of the fleece-knit fabric (which will eventually serve as fronts) will be cut into rectangular shapes;
(5) the rectangular shapes will be embellished with plastic ornamental buttons, and appliques (e.g., in the shape of a "K") of Malaysian origin; (6) the embellished rectangular shapes and the balance of the piece goods on bolts will be shipped to Panama

In Panama:

(1) the fleece-knit fabric on bolts will be cut into component parts (i.e., back and sleeves); (2) the ribbed-knit fabric will be cut into component parts (i.e., collar, cuffs, bottom);
(3) the embellished rectangular shapes will be fabricated into fronts by cutting out a neck and armholes;
(4) the components will be assembled into the finished garment by machine sewing in a series of both single-needle and merrow-overlock stitching; (5) the garments will be finished by the sewing in of labels, inspecting, folding, and packing.

ISSUE:

Is the country of origin of the finished crew neck fleece top Malaysia or Panama?

LAW AND ANALYSIS:

Volume 19 of the Code of Federal Regulations, section 12.130 (19 CFR 12.130), sets out the criteria for determining the country of origin of imported textile goods. Section 12.130(e) deals specifically with manufacturing or processing operations. Its relevant provisions provide:

(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

The cutting of the fabric and assembly of the garment in Panama falls within the above provision. We believe the time involved in the cutting and assembly of the garment in Panama far outweighs the time involved in the cutting and embellishment of the rectangular piece which will become the front of the garment. The fact that one rectangular piece is cut in Malaysia and minimally embellished is insufficient to prevent the cutting and assembly done in Panama from establishing Panama as the country of origin.

HOLDING:

The country of origin of the subject garment, produced as described above, is Panama.

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 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 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

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