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HQ 955122


December 28, 1993

CLA-2 CO:R:C:T 955122 jb

CATEGORY: CLASSIFICATION

Mr. Marcel Lepine
Omnitrans Inc.
407, Rue McGill
Montreal, Quebec H2Y 2G3

RE: Country of origin determination regarding wool gloves

Dear Mr. Lepine:

This is in reply to your letter, on behalf of your client, Paris Gloves of Canada Ltd., dated August 13, 1993, requesting a country of origin determination and eligibility under the United States Canada Free Trade Agreement (CFTA) for a pair of wool gloves. With regard to your question concerning eligibility for preferential tariff treatment under the CFTA, please be advised that the North American Free Trade Agreement (NAFTA) will enter into force on January 1, 1994, on an exchange of written notifications between the NAFTA Parties certifying the completion of necessary legal procedures. Pursuant to Section 107 of the North American Free Trade Implementation Act, the operation of CFTA is to be suspended by virtue of entry into force of NAFTA.

FACTS:

The subject merchandise, referred to as Style 6T-018, is a knit glove constructed of 85 percent wool and 15 percent nylon. The glove has a thinsulate lining and overlaid deerskin reinforcement on the palm and palm-side of the thumb and fingers. You state that the leather palms, cut to shape in Canada from North American deerskin, are then sent to China where they are sewn to the textile gloves. The gloves are then exported from China to Canada where a thinsulate lining of Canadian origin is permanently sewn onto the gloves.

Your ruling request was originally addressed by our New York office in New York Ruling Letter (NYR) 890396, dated September 15, 1993, which determined that proper classification for the item is in subheading 6116.91.0000, HTSUSA. As that ruling provided you with a classification determination this will not be addressed in the present ruling.

ISSUE:

What is the country of origin of the subject item?

LAW AND ANALYSIS:

Country of origin

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(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(e)(1) of the Customs Regulations states that an article or material usually will be a product of a particular foreign territory or country when it has undergone prior to importation into the U.S. in that foreign territory or country any of the following:

(iii) Weaving, knitting or otherwise forming fabric

The item at issue is knit to shape in China. As indicated by the Customs Regulations, this forms the fabric and is considered a substantial manufacturing operation. Neither the addition of the leather palm nor the lining changes the identity, fundamental character or commercial use of the glove. As such, the glove is deemed to be a product of China.

HOLDING:

The country of origin of the glove, Style number 6T-018, is China. It is in China where the fabric is knit to shape; this is considered a substantial manufacturing process for purposes of conferring country of origin.

The glove is a product of China and is subject to visa requirements and quota restraints.

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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