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HQ 954558


October 25, 1993

CLA CO:R:C:T 954558 jb

CATEGORY: CLASSIFICATION

Mr. Ted Chen
Diamond Hosiery & Thread Co., Ltd.
150 Nanking E. Rd., Sec. 2, 11th Floor
Taipei, Taiwan
R.O.C.

RE: Country of Origin determination for men's knit shirt

Dear Mr. Chen:

This letter is in response to your inquiry of July 1, 1993, requesting a country of origin determination for a man's knit shirt. A sample of the finished shirt, after assembly, as well as a sample of the component parts, before assembly, were submitted to this office for examination.

FACTS:

The submitted samples consist of a completed men's knit shirt, referred to as Style number 870200478, and its component parts before completion. The shirt features a partial frontal opening and button closure, a collar and short sleeves with ribbed knit cuffs. The front panel component consists of 20 cut pieces sewn together to form a check pattern.

You state that a multiple country processing operation is involved in the manufacture of the shirt. The manufacturing procedures involve the following operations in Country A and Country B:

COUNTRY A

1. Sourcing of knit fabric
2. Weaving of fabric
3. Dyeing
4. Cutting of 23 pieces for the shirt consisting of pieces for the front panel, sleeves and back panel (not including collar and cuff pieces)

COUNTRY B

5. Assembly of front panel pieces

COUNTRY A

6. Assembly of front and back panels, sleeves, collar and cuffs
7. Embroidering
8. Inspecting
9. Folding
10. Packing

ISSUE:

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

LAW AND ANALYSIS:

Section 12.130 of the Customs Regulations (19 CFR 12.130) sets forth the principles of country of origin for textiles and textile products subject to Section 204 of the Agricultural Act of 1956, as amended (7 U.S.C. 1854).

Pursuant to 19 CFR 12.130(b), the standard of substantial transformation governs the country of origin determination where textiles and textile products are processed in more than one country. The country of origin of textile products is deemed to be that foreign territory or country where the article last underwent a substantial transformation. Substantial transformation is said to occur when the article has been transformed into a new and different article of commerce by means of substantial manufacturing or processing.

The factors to be applied in determining whether or not a manufacturing operation is substantial are set forth in 19 CFR 12.130(d). Section 12.130(e)(1) 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) states that an article will be a product of a particular foreign country, when it has undergone prior to importation into the U.S. in that foreign country:

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 of all cut pieces of suit-type jackets, suits and shirts).

We have previously held that cutting of fabric into pattern pieces constitutes a substantial transformation of the fabric, resulting in the apparel pieces becoming a product of the country where the fabric is cut. Customs has also 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 HQ 082747, dated February 23, 1989; HQ 086665, dated March 23, 1990; HQ 951169, dated April 1, 1992; HQ 951437, dated July 17, 1992; HQ 734392, dated August 4, 1992; HQ 953489, dated June 14, 1993; HQ 953698, dated July 19, 1993).

The sewing operation performed in Country A involves the simple assembly of component pieces to form the front and back panels, sleeves, collar and cuffs. Similarly, the sewing operation performed in Country B involves the simple assembly of several cut pattern pieces to form only the front panel of the shirt. Neither the sewing operation performed in Country A nor Country B involve the complex sewing operation contemplated by Section 12.130(e)(1)(v), as for example, that found in the assembly and tailoring of all cut pieces of suit-type jackets, suits and shirts.

Accordingly, as the cutting in Country A changes the fabric into designated garment parts, this constitutes a substantial transformation of that fabric and confers country of origin.

HOLDING:

The country of origin of the submitted merchandise is Country A. It is at the cutting process, in Country A, that the textile product undergoes a substantial transformation and is transformed into a new and different article of commerce.

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 the ruling letter, either directly, by reference, or by implication, is accurate and complete in every material respect.

Should it be subsequently 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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