HQ 0952908 - Country of origin of earmuffs - United States International Trade Commision Rulings

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HQ 952908

March 22, 1993

CLA-2 CO:R:C:T 952908 CC

CATEGORY: CLASSIFICATION

Richard Lee
Crown Pacific Accessories Inc.
7F. No.262 Sec.2, Chien Kuo N. Road
Taipei, Taiwan, R.O.C.
P.O. Box:68-1066

RE: Country of origin of earmuffs

Dear Mr. Lee:

This letter is in response to your inquiry, requesting the country of origin of earmuffs. Samples were submitted for examination.

FACTS:

The merchandise at issue consists of three styles of ear- muffs, designated by you as regular earmuffs, halo earmuffs, and giant earmuffs. Each of these styles has an outer surface made of acrylic knit fabric, with a backing of thinsulate. The frame of the earmuffs is made of nylon plastic.

According to your submissions, Taiwanese acrylic fabric and thinsulate will be cut to shape and sewn together. Also, elastic is sewn to the inner edge of the circular piles, the portion used to cover the ears. The acrylic strap, the piece used to cover the headband, is sewn together. The semi-finished earmuffs are then sent to China, where these pieces are assembled with the frame (from Hong Kong). In addition foam and a small circular piece of fabric, both from Hong Kong, are inserted into the circular piles. The outer fabric is then brushed and the merchandise is packed for shipment.

ISSUE:

What is the country of origin of the merchandise at issue?

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 or
(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:

(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 foreign territory or country, or insular possession of the U.S.

(iii) The complexity of the manufacturing or processing operations in each foreign territory or country, or insular possession of the U.S.

(iv) The level or degree of skill and/or technology required in the manufacturing or processing operations in each foreign territory or country, or insular possession of the U.S.

(v) The value added to the article or material in each foreign territory or country, or insular possession of the U.S., compared to its value when imported into the U.S.

In Taiwan the earmuff materials are cut and sewn to create the circular piles and acrylic strap. The materials created by this processing clearly identify the merchandise at issue as earmuffs; thus, a new and different article of commerce has been created in Taiwan. In addition, we believe that the operations performed in Taiwan constitute substantial manufacturing and processing operations. Consequently a substantial transformation has taken place in Taiwan. In China only a partial assembly takes place, which is best described as simple assembly operations. More importantly, when the merchandise leaves Taiwan it is clearly identifiable as earmuffs, and thus a new and different article of commerce has not been created in China. Consequently a substantial transformation does not take place in China; the last substantial transformation for the merchandise at issue takes place in Taiwan.

HOLDING:

The country of origin of the merchandise at issue is Taiwan.

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

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