HQ 0954139 - Country of origin of various upper body garments - United States International Trade Commision Rulings

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HQ 954139

August 24, 1993

CLA-2 CO:R:C:T 954139 CAB

CATEGORY: CLASSIFICATION

David C. Williams, Esq.
Neville, Peterson & Williams
39 Broadway
New York, NY 10006

RE: Country of origin of various upper body garments

Dear Mr. Williams:

This ruling is in response to your inquiry of April 1, 1993, on behalf of your client, Zion Textiles, requesting a country of origin ruling of five types of upper body garments. No samples were received by Customs Headquarters.

FACTS:

The merchandise in question consist of a short-sleeve pocket tee shirt, a long-sleeve tee shirt, a long-sleeve turtleneck, a long-sleeve printed sweatshirt, and a long-sleeve plain sweatshirt. You propose two different scenarios and request a response on both scenarios.

In the first scenario, the manufacturing steps completed in Israel are as follows:

1. Cotton or blended cotton/manmade fiber fabric will be knitted, dyed, and finished.

2. The fabric will be cut into garment pieces and packaged with other articles of Israeli origin including buttons and thread.

In the second scenario, the manufacturing steps are as follows:

1. Fabric will be imported from a third country such as the United States or the Peoples Republic of China.

2. The fabric will then be inspected, marked and cut in Israel, and packaged with other Israeli components.

In both scenarios, the unassembled components will be sent abroad for assembly into finished garments. The exact country of assembly has not yet been determined, though it is anticipated that the assembly will occur in Bulgaria.

The final processing of the garments will be completed in either two methods. The long-sleeve printed sweatshirt will undergo an additional processing step which includes screen printing in the country of assembly. One assembly method involves returning the assembled garments to Israel for final processing, such as labeling, inspection, and packaging. In the other assembly method, the assembled garments will undergo the aforementioned processing in Bulgaria or another country.

ISSUE:

What is the country of origin for the merchandise in question?

LAW AND ANALYSIS:

Country of origin determinations for textile products are subject to Section 12.130, Customs Regulations (19 CFR 12.130). Section 12.130 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), Customs Regulations, sets forth criteria for determining whether a substantial transformation of a textile product has taken place. This regulation states 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), Customs Regulations, 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), Customs Regulations, states that for 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

(ii) The time involved in the manufacturing or processing (iii) The complexity of the manufacturing or processing

(iv) The level or degree of skill

(v) The value added to the article or material

Section 12.130(e)(1), Customs Regulations, describes manufacturing or processing operations from which an article will usually be considered a product of the country in which those operations occurred. Section 12.130(e)(1)(v) provides the following:

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).

According to T.D. 85-38, the final document rule establishing 19 CFR 12.130:

The assembly of all the cut pieces of a garment usually is a substantial manufacturing process that results in an article with a different name, character, or use than the cut pieces. It should be noted that not all assembly operations of cut garment pieces will amount to a substantial transformation of those pieces. Where either less than a complete assembly of all the cut pieces of a garment is performed in one country, or the assembly is a relatively simple one, then Customs will rule on the particular factual situation as they arise, utilizing the criteria in Section 12.130(d).

Customs has consistently determined that cutting fabric into garment pieces constitutes a substantial transformation of the fabric and the clothing pieces become products of the country where the fabric is cut. (See e.g. Headquarters Ruling Letter (HRL) 952531, dated November 25, 1992; HRL 089539, dated April 22, 1992; and HRL 089834, dated September 26, 1991).

Customs has also long held that the mere assembly of goods entailing simple combining operations, trimming or joining together by sewing is not enough to substantially transform the components of an article into a new and different article of commerce. (See e.g. HRL 082787, dated March 9, 1989; and HRL 082747, dated February 23, 1989).

After considering both proposed scenarios, Customs believes that the assembly operations required to complete the garments do not amount to a substantial manufacturing operation required by Section 12.130(e)(1)(v). The assembly operations involve simple sewing which does not require highly skilled workers or a substantial amount of time.

Also in regard to the final processing of the garments, described in your submission as the finishing, inspection, and packaging, as stated in HRL 088235, dated March 15, 1991, it is of no consequence whether these operations occur in Israel or Bulgaria, or some other locale. Finishing, inspection, and packaging, are not considered sufficient operations to substantially transform an article, and thus, change the country of origin. Therefore, the country of origin of the garments at issue is the country where the last substantial transformation occurred, Israel.

HOLDING:

The country of origin of the garments at issue is Israel.

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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