HQ 0951427 - Country of origin determination of two styles of women's woven skorts - United States International Trade Commision Rulings

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HQ 951427

July 21, 1992

CLA-2 CO:R:C:T 951427 CMR

CATEGORY: CLASSIFICATION

Judith Schechter, Esq.
Grunfeld, Desiderio, Lebowitz & Silverman 12 East 49th Street
New York, New York 10017

RE: Country of origin determination of two styles of women's woven skorts

Dear Ms. Schechter;

This ruling is in response to your submission of March 26, 1992, on behalf of your client, Orit Imports Inc., requesting a country of origin determination for two styles of garments known as skorts. The garments will be produced as the result of manufacturing operations which will take place in more than one country.

FACTS:

The garments at issue, style 8164 and style "Blaze", will be made from 100 percent rayon fabric that will be woven and printed in Taiwan. The fabric, which will not have any lines of demarcation, will then be sent to Singapore where it will be cut into garment parts. The cut parts and trim (i.e., buttons, elastic and labels) will then be sent to Malaysia for assembly by sewing. The finished garments will be returned to Singapore for packaging and export to the United States.

A breakdown of the relative costs of the production operations for each style is presented below.

Style 8164

Piece Goods (Taiwan) 54%
Cutting (Singapore) 6%
Sewing (Malaysia) 19%
Packing (Singapore) 6%
Accessories (Taiwan) 12%
Profit (Singapore) 3%

Style "Blaze"

Piece Goods (Taiwan) 54%
Cutting (Singapore) 7%
Sewing (Malaysia) 14%
Packing (Singapore) 8%
Accessories (Singapore) 10%
Profit (Singapore) 7%
100%

Samples of the finished garments, along with cut components for style 8164, were received as part of your submission. The finished garments are women's pleated skorts, i.e., divided skirts. Style 8164 features a two and one-half inch wide partially elasticized and shirred waistband (over 50 percent) with a seven and one-half inch long non-elasticized or shirred band in the center front of the waistband. The garment is pleated in the front and is loose-fitting giving it the appearance of a skirt when viewed from the front. The garment also has side inseam pockets and hemmed leg bottoms which extend to slightly above the knee.

Style "Blaze" has a two-inch wide elasticized and shirred rear waistband. The front waistband is not elasticized or shirred and it connects to the back waistband by means of two buttons on each side of the garment. The garment is pleated in the front and is loose-fitting giving it the appearance of a skirt when viewed from the front. The garment has side pockets and hemmed leg bottoms which extend to slightly above the knee.

ISSUE:

Are the garments at issue products of Taiwan, Singapore or Malaysia?

LAW AND ANALYSIS:

Country of origin determinations for textile articles are governed by the criteria set forth in Volume 19, Code of Federal Regulations, Section 12.130. Generally, section 12.130 provides that the country of origin of a textile article is that foreign territory, country or insular possession where the article last undergoes a substantial transformation.

In Section 12.130(e)(1), various manufacturing or processing operations which will be viewed as sufficient to convey country of origin designation are listed. In pertinent part, the regulation states that an article will usually be considered a product of a country if it has undergone in that country,

(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).

However, in Section 12.130(e)(2), the regulation provides that an article usually will not be considered a product of a country if it has merely undergone in that country,

(i) Simple combining operations, labeling, pressing, cleaning or dry cleaning, or packaging operations, or any combination thereof;

Customs has issued many rulings on garments in which the cutting and assembly occur in different countries. Customs has consistently held that unless the assembly operations are substantial, the country of origin will remain the country in which the garment parts are cut. See, HRL 083461 of 5/15/90, HRL 088022 of 2/7/91 and HRL 084427 of 8/30/89.

Having examined the finished garments and the garment pieces for style 8164, Customs believes that the assembly operations required to complete the garments do not require substantial sewing or tailoring and therefore are not sufficient to substantially transform the garments and change the country of origin from the country in which the garment components are cut.

HOLDING:

The garments at issue, style 8164 and style "Blaze", are products of the country where the garment parts are cut, i.e., Singapore.

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 -4-
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 the 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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