HQ 0954609 - Country of origin determination for women's woven cotton shorts; 19 CFR 12.130; article is last substantially transformed in country where fabric is cut; mere assembly is not a substantial transformation. - United States International Trade Commision Rulings

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HQ 954609

November 1, 1993

CLA-2 CO:R:C:T 954609 SK

CATEGORY: CLASSIFICATION

Barry E. Powell
Grunfeld, Desiderio, Lebowitz & Silverman 245 Park Avenue
New York, N.Y. 10167-0002

RE: Country of origin determination for women's woven cotton shorts; 19 CFR 12.130; article is last substantially transformed in country where fabric is cut; mere assembly is not a substantial transformation.

Dear Mr. Powell:

This is in reply to your letter of July 8, 1993, on behalf of your client, Tuntex Incorporation, requesting a country of origin determination for one style of women's shorts. A sample of the completed garment was submitted to this office as were samples of the assorted trim components.

FACTS:

The article at issue, referenced style B0301, is a women's woven short. The article is made up of four major panels (two front and two back) and 26 ancillary components such as pocket pieces, belt loops, waistband interlinings, etc... . The shorts feature a front zipper fly secured at the waist by two buttons, two front welt-style serge-faced bag pockets, a back welt pocket secured by a button, a partially elasticized waistband and two front and three back belt loops. The front of the shorts have three pleats on each side and they are not lined. The shorts are cuffed and extend to the knee.

The fabric for the shorts is woven and cut in Taiwan. The shorts are assembled in a second country by sewing and then packaged for export to the United States.

The relative costs of the various production operations for style B0301 are as follows:

Piece Goods (Taiwan) 46.71%
Cutting (Taiwan) 10.99%
Sewing (Country B) 9.85%

Packing (Country B) 1.10%
Trims (Taiwan) 16.35%
Profit (Taiwan) 15.00%

ISSUE:

What is the country of origin of the subject merchandise?

LAW AND ANALYSIS:

Section 12.130(b) of the Customs Regulations (19 CFR 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. Your attention is directed to Section 12.130(e)(v) of the Customs Regulations which states that an article will usually have undergone a substantial transformation (change in country of origin) if it has undergone a substantial assembly of all cut pieces into a completed garment.

Customs has 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 Headquarters Ruling Letter (HRL) 082747, dated February 23, 1989, in which Customs determined that the assembly of jeans was not a substantial transformation and HRL 951427, dated July 21, 1992, which reached a similar conclusion with regard to women's "skorts."

The assembly process in the second country involving the sewing together of components cut from fabric in Taiwan does not involve sufficient skill or complexity to constitute a substantial transformation as defined by the regulations set forth supra. The country of origin of these articles is Taiwan as that is where the piece goods were cut into specific parts and where the articles last underwent a substantial transformation.

HOLDING:

The country of origin of style B0301 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 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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